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Administration looms for Rangers
ESPN staff
February 13, 2012
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Rangers are in danger of going into administration
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Rangers have served notice 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.
Rangers now have five days to confirm whether administrators have been appointed to take over the running of the club.
The announcement comes with Rangers awaiting a verdict in a tax tribunal with Her Majesty's Revenue and Customs (HMRC) that could land the club with a bill of £49 million. If they lose their case then it is feared the SPL champions could go into liquidation.
Rangers will be hit with a 10-point penalty if they do enter administration. They are currently four points behind city rivals Celtic in the SPL table.
The huge news comes on the same day Rangers announced the signing of striker Daniel Cousin, who played for the club in the 2007-2008 season, on a deal until the end of the season.
An SPL spokesman said: "At this point in time, Rangers are not in administration and we await developments. The instant that they are technically in administration there will be an automatic ten-point deduction and, perhaps of less relevance, an embargo on player registrations.
"If administration is confirmed, as we have done previously, we would be looking to work with the administrators and would be looking for a very early meeting."
The HMRC tax tribunal is centred on the use of employee benefits trusts (EBTs), which were in place before Whyte took over from Sir David Murray last May. Whyte, who bought Murray's shares for £1 and pledged to pay off £18 million of debt to Lloyds Banking Group, has seen his short tenure shrouded in controversy.
Last week former Rangers chairman Alastair Johnston revealed he had asked the Government's Insolvency Service to clarify "certain financial arrangements" relating to the takeover of the club. Whyte had earlier admitted securing funds from loan company Ticketus in lieu of future season ticket sales.
Johnston told the BBC: "Rangers' stakeholders are now demanding full transparency. I have had numerous approaches following the recent revelations in the press about the acquisition of Rangers Football Club and the use of future season ticket money.
"I am not in a position to answer all the questions put to me, but I do recognise the issue is causing much concern.
"I believe this is a prevalent view amongst Rangers' stakeholders who are now demanding full transparency about the funding of the acquisition of the club, its current financial status, and most importantly, the way forward."
Rangers were crowned champions of Scotland in 2009, 2010 and 2011, and their 54 league titles make them the most successful club in the world in terms of domestic championships.
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