Rangers Football Club has lodged legal papers signalling its intention to go into administration. The Ibrox club lodged papers at the Court of Session in Edinburgh on Monday, notifying an intention to declare an administrator. It now has five days to confirm whether administrators have been appointed to take over the running of the club. The move comes while Rangers awaits a tax tribunal decision over a disputed bill plus penalties totalling £49m. If the club is formally put into administration it faces an immediate 10-point penalty from the Scottish Premier League. That would place the Ibrox club 14 points behind first-placed Celtic in the race for the championship. Craig Whyte bought the club last year from Sir David Murray It is understood the papers relating to administration were lodged by Rangers' lawyers on behalf of directors. Craig Whyte, who bought the club from former owner Sir David Murray last year, said recently that administration was an option if the club lost the tax case. The case relates to the use of employment benefit trusts (EBTs) to pay players and other staff. It is thought that HM Revenue and Customs believe the club misused the scheme and avoided paying significant sums in tax. The amount HMRC is claiming, including penalties and interest, is believed to be about £49m. BBC Scotland's business and economy editor, Douglas Fraser, said the legal moves on Monday surrounding administration would give the club "a few days for negotiations with HM Revenue and Customs (HMRC)". The revenue could stand to lose out on any tax due if Mr Whyte chooses to collapse the company. Mr Whyte is understood to be the club's main secured creditor via a floating charge over its assets. This would allow him to pursue other avenues such as receivership or pre-pack administration to satisfy the debts which the club owes him. These would involve transferring Rangers assets out to another company or companies to satisfy outstanding debts to the floating charge holder and leaving the club behind with the debt. In such scenarios, it would be likely that Rangers FC - formed in 1873 - would be formally wound up. BBC News - Rangers FC signals intent to go into administration
Looking like it. It will be a few days before it becomes official, but it looks inevitable from that statement. Must be karma: a club that has pandered to prejudice and religious nonsense throughout its history finds itself facing ruin. Tough.
It'll seem a surprise to see a club of Rangers' size to into administration, usually it's just the "little teams" that do, but it's no surprise that it's actually Rangers. Their financial woes are well documented, and it's been that way for a while. This could have a negative effect on Scottish football, which is already on the floor but I have little sympathy with them as I club. I don't like them, and most of this is brought on themselves - the fans thought it was great when David Murray was throwing massive money to sign all the big names, but it's come back to bite them all. Also, the fans thought that it was hilarious when Celtic were struggling financially but now the boot is on the other foot they're not so happy. The chairman that was put in place when Murray departed and the bank came in, Alistair Johnson, was more reluctant to sell to the new owner Whyte and the fans accused him of self-interest - it looks like he might have been on to something, as this supposed new dawn hasn't come as Whyte isn't all that he wanted to be seen as.
Regardless of how we feel about a club we should never celebrate a club going into administration its sad when clubs go tits up like this it really is. I'd be sad if it was City, Chelsea, Arsenal and even Liverpool.
It's a warning - no matter how big the name, you have to spend wisely. Celtic should actually be worried, for if there is no Rangers, then Celtic will have no natural foil to raise interest and revenue. Those Old Firm games rake in a fortune and probably are the only asset the SPL really has. Mark my words, if Rangers go down - then it's a matter of time until Celtic are begging to join the FA Premier League.
So they'll get a ten point deduction, which will drop them down from second place to... second place. What a league.
just goes to show that no football club is safe - how things can change for a football club very quickly.
the old firm derby's are always tasty - right now Celtic fans will be laughing at them. Thats the title for Celtic now.
