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http://www.channel4.com/news/rangers-fc ... nistration

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Tuesday 14 February 2012
As Rangers are forced to appoint administrators, historian Tom Devine tells Channel 4 News that fans will be devasted - and that Sir David Murray, hailed as Rangers' 'saviour' may lose his knighthood.

The Glasgow-based club had been given until 3.30pm today to appoint an administrator after a legal debate at the court of session in Edinburgh.

The club's administrators will be Duff & Phelps, the court was told.

The Scottish Premier League automatically deducts ten points and imposes a player transfer freeze is a club goes into administration, dashing Rangers' chances of winning the league.

Scottish historian Tom Devine, who has researched the history of the 'Old Firm' - Rangers and Celtic - told Channel 4 News that it is "inevitable and predictable" that the knighthood given to former club owner, Sir David Murray, will be questioned.

"After the disorientation that the supporters felt, the next stage will be rage and anger, and I think he will be at least one of the two personalities who will be attacked systematically over the next few days," he said.

Rangers had lodged administration papers on Monday and said a final decision would be made within 10 days.

But it emerged that the HMRC lodged a court petition soon after, to allow it to appoint its own administrator. Its bid was denied, but the action forced the takeover by an administrator to be made sooner than expected.

Concern over day-to-day costs

Following the appointment, Strathclyde Police said it was seeking urgent talks with the administrators to discuss the club's ability to pay for officers at future matches - including a Rangers game this Saturday against Kilmarnock.

"Until we have such a guarantee [of payment] we would not be in a position to commit public resources to policing an event unless we had a reassurance that our costs would be met," said a spokesman.

There are many communities in Scotland - not just in Glasgow - who define their identity to some degree, almost in terms of Glasgow Rangers and they must be in a state of complete apoplexy today and disorientation as to what has happened.
Tom Devine, Scottish sports historian

Mr Devine told Channel 4 News that Rangers is a Scottish institution and the club's situation is "much more significant and deeper than a sporting event".

"There are many communities in Scotland - not just in Glasgow - who define their identity to some degree, almost in terms of Glasgow Rangers and they must be in a state of complete apoplexy today and disorientation as to what has happened," he said.

Judge Lord Menzies gave Rangers until 3.30pm on Tuesday to appoint an administrator - otherwise the HMRC's bid for a court-appointed administrator would have been upheld.

The Scottish Premier League champion club is locked in a £49m tax dispute with the HMRC, over the payment of Employment Benefit Trusts (EBTs) to staff and players over 10 years.

The HMRC alleges that the lbrox club avoided paying tax through its running of the scheme. Rangers dispute the claims.


Duff & Phelps appointed

Speaking after the proceedings at the court of session, Rangers' counsel, Roderick Dunlop QC, said: "It was agreed that HMRC would withdraw their petition and Duff & Phelps would be appointed as administrators."

He also confirmed that Rangers FC has accepted liability for the expenses incurred by the HMRC in drawing up the petition.

HMRC's legal representative, David Thomson, said there was no "unseemly rush" between the club and the tax body about getting petitions in first.

A spokesman for HMRC said: "We can't discuss specific cases for legal reasons but tax that has been deducted at source from the wages of players and support staff such as ground keepers and physios must be paid over to HMRC.

"Any business that fails to meet that basic legal requirement puts the survival of the business at risk."

Demand for 'transparency'

Craig Whyte took over the club from Sir David Murray last May. He secured funds of £20m from the company Ticketus through advance ticket sales.

Last week, former Rangers chairman Alastair Johnston said that the club's shareholders were demanding "full transparency" about funding and its financial status.

The Scottish parliament's sports minister, Shona Robinson, said the situation was "concerning".

"Football is our national game and it is now for the administrators to take forward the process of assessing the business and securing an outcome in the best interests of the club, its staff, supporters and the game of football as a whole in Scotland," she said.

Rather big news for us North of the border, there are two big teams in scotland and for one of them to go be in this situation is a very big deal. Scottish culture for a part revolves around the old firm, and to imagine scotland without one of that is very difficult. There has always been that diving line here, Gers or Celts, unionist or republican, protestant or catholic and it is very tied into football and the game that happens at least 4 times a year.

But they are fucked the debts they are under are crippling, their situation in the league while looks good at second, they will go without any silverware this year, and will need to qualify for europe. On top of that they are going to have to sell alot of players which will further reduce their menace in the Scottish game.

While I imagine alot of people will think this is just about sport, this far bigger news than people who don't know of the old firm and that rivalry understand.

[Zagadka]

I have absolutely no idea what this is about, but skimming it, I'm pretty sure it isn't an important political/social news item.

[Thompson_NCL]

It does have political and social implications for the reasons RtF has pointed out, but not international ones.

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but not international ones.

A very large portion of the old firms fans are not based in the UK. For instance the other half of Glasgow has 9 million fans, one million of which are from across the pond. The old firm plays into both the Scottish and Irish diaspora as well as the troubles, sectarianism and that long and dirty history in both countries, and so extends far beyond the borders of Scotland.

[Smertios]

It does have political and social implications for the reasons RtF has pointed out, but not international ones.

Yes, but it is a bit non-informative for non-British people, don't you think? At first, the news is about a minor economical issue in Scotland. Not even relating to the whole UK. It took me some research to understand what "administration" means, what is the "Old Firm". And the article doesn't make it very clear why David Murray's knighthood is on the line either. I mean, is an enraged public of regional football enthusiasts from one single team enough to have it be an actual threat? And checking other sources (ESPN and the Daily Mail), I see no reference to that at all

And football rivalries have political connotations pretty much everywhere in the world. Just look at the case with Real Madrid CF and FC Barcelona in Spain, for example. So I agree that the news have some political connotation, but it is still just a piece of regional news, and it took me a while to actually understand what it is about. And judging by Zagadka's response, I feel that wasn't just me...

[Quantum]

Thank goodness. Ranger fans are a bunch of uncivilised twats who trash cities such as Manchester and I hope that the football club is outlawed along with Celtic. Anyway, the SPL sucks since it's dominated by the Old Firm every year and is not as interesting as the Premier League.

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At first, the news is about a minor economical issue in Scotland. Not even relating to the whole UK. It took me some research to understand what "administration" means, what is the "Old Firm". And the article doesn't make it very clear why David Murray's knighthood is on the line either. I mean, is an enraged public of regional football enthusiasts from one single team enough to have it be an actual threat?

Okay firstly the old firm is the term used to refer to the teams of celtic and rangers, the two dominant football teams in Scotland and one of the fiercest rivalries in sports. The two teams are essentially split down class Irish lines. Rangers are protestant, unionist, and loyalist, Celtic are catholic, republican and nationalist. And so being separated by such a contentious issue and the teams so dominant in the game that it the rivalry is extremely bitter.

The rivalry is not about sport, the songs from the terraces are offensive, racist and sectarian. The policing costs are extraordinary, all types of violent crimes increase across Scotland and Ireland on the days the two teams play each other.

So that's the old firm.

Secondly why this is a wider issue, firstly the reason Rangers are in this trouble was trying to use a tax loophole, and they were by far not the only club to do it, they will just be the first domino to fall once the HMRC has made their point in Glasgow there are alot of major teams across the UK that will be dragged through the same process for the same reason?

And David Murray may lose his knighthood basically because it looks like he fucked over a 140 year old team, and while we are taking knighthoods off Goodwin for screwing up banks we will take knighthoods of people that screw up culturally, socially and economincally important football teams.

So why does it matter to the rest of the world? Well because the old firm has one of the biggest groups of supporters in the world and so it affects alot of people outside Glasgow, Scotland and the UK.

And don't whine to me that you are ignorant of the matter, half the stuff on this forum refers to purely American matters and I don't get my panties in a bunch.

[Daktoria]

It does have political and social implications for the reasons RtF has pointed out, but not international ones.

Not so sure about that. Scottish independence could be tarnished from the degradation of an independent national pastime.

On the other hand, if the Rangers fold up, their players could transfer to other teams and balance out the league, heightening Scottish activism.

[Smertios]

Secondly why this is a wider issue, firstly the reason Rangers are in this trouble was trying to use a tax loophole, and they were by far not the only club to do it, they will just be the first domino to fall once the HMRC has made their point in Glasgow there are alot of major teams across the UK that will be dragged through the same process for the same reason?

Most teams in the UK are committing tax fraud?

And David Murray may lose his knighthood basically because it looks like he fucked over a 140 year old team, and while we are taking knighthoods off Goodwin for screwing up banks we will take knighthoods of people that screw up culturally, socially and economincally important football teams.

How dangerous is it for that to actually happen? I mean, people normally get more upset about money than about sport...

And don't whine to me that you are ignorant of the matter, half the stuff on this forum refers to purely American matters and I don't get my panties in a bunch.

Yeah, I agree. Normally I wouldn't post in a thread like this. But Scotland right now is a point of interest, so I am trying to understand the implications here...

[The Clockwork Rat]

Wow, I didn't anticipate this ever happening! To those in North America, this is like the Sox or Yankees going completely broke, if not worse. Neither RtF nor the article is overstating the fact that this is pretty massive news in Scotland.

However, although they may well not win the league this year, I would expect some wealthy foreigner to buy out the club fairly soon.

Yeah, I agree. Normally I wouldn't post in a thread like this. But Scotland right now is a point of interest, so I am trying to understand the implications here...

It's hard to say. Perhaps you could imagine what would happen in Argentina if Boca Juniors or River Plate was under threat of being canned...

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Most teams in the UK are committing tax fraud?

By using EBTs to pay their players and staff. As far as I am aware it is not an uncommon practice.

How dangerous is it for that to actually happen? I mean, people normally get more upset about money than about sport

This is partially about money, the old firm is a source of income for the country. Murray basically dodged taxes through EBTs and so can be brought up on that. And sport and especially those two teams are extremely big and so the level of anger is going to be very high.

so I am trying to understand the implications here

Imagine the patriots going bankrupt because they failed to fully pay their taxes for over 10 years and you have the problem. Through on top of that everything that goes with the old firm rivalry and you can see why it is making headlines. I picked up some tabloids today and they had the first 10-16 pages dedicated to this, and the back pages, and the opinions and editorials.

[Smertios]

It's hard to say. Perhaps you could imagine what would happen in Argentina if Boca Juniors or River Plate was under threat of being canned...

I would understand a lot of people being pissed for a couple years. But I don't see a candidate losing the election based on that, for example, really

By using EBTs to pay their players and staff. As far as I am aware it is not an uncommon practice.

And why wasn't that stopped before?

This is partially about money, the old firm is a source of income for the country. Murray basically dodged taxes through EBTs and so can be brought up on that. And sport and especially those two teams are extremely big and so the level of anger is going to be very high.

I see...

so I am trying to understand the implications here

Imagine the patriots going bankrupt because they failed to fully pay their taxes for over 10 years and you have the problem. Through on top of that everything that goes with the old firm rivalry and you can see why it is making headlines. I picked up some tabloids today and they had the first 10-16 pages dedicated to this, and the back pages, and the opinions and editorials.[/quote]

This opened a few more questions, since I had to research on who the Patriots are, but I understand what you mean. Do you think this can affect the upcoming local elections, though?

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This opened a few more questions, since I had to research on who the Patriots are, but I understand what you mean. Do you think this can affect the upcoming local elections, though?

No. It's impact is cultural rather than political which is why the issue extends beyond the borders.

And why wasn't that stopped before?

HMRC misses a whole load of money from tax evasion every year, if they get this test case through though I imagine they will pursue the rest.

[Smertios]

No. It's impact is cultural rather than political which is why the issue extends beyond the borders.

Okay, but I'm still not understanding what the implications there might be. Sorry Do you think there will be massive impact on society, or will David Murray's knighthoods be the only thing that could be implicated?

(sorry for asking so many questions, by the way - I'm seriously curious, it is not just about being annoying)

HMRC misses a whole load of money from tax evasion every year, if they get this test case through though I imagine they will pursue the rest.

If it was here, that alone would be enough to generate a lot of anger, indeed. Especially with it all coming from football teams.

[Rancid]

To those in North America, this is like the Sox or Yankees going completely broke, if not worse.

oooohhhhh, ok thanks.

[Brio]

Ironically, the Rangers on our side of the pond (hockey, I don't follow scratch-my-ass-and-chew-tobacco-ball) are one of the richest teams in their league.

So are Celtic fans happy over this?

[The Clockwork Rat]

One of my friends is a Celtic fan, but I'm yet to hear his thoughts.

Do you think there will be massive impact on society

Yes, but it's nigh impossible to tell what that might be. There are tens, if not hundreds, of thousands of people where Rangers is the most important thing in their lives, and the majority of them all live in one corner of Glasgow. It's a phenomenon which is pretty much unique as far as I know.

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Do you think there will be massive impact on society

Yes. Sectarianism is a big part of Scottish culture and alot of that revolves around those two football teams. To imagine Scotland without that aspect of it is rather difficult. For alot of these people being a Gers fan is an intgral part of their identity, it weaves into every part of their life. It's unique because it's not just about football, in fact football is a very minor part of that, it's just how it is played out, an outlet. The hatred between these two teams doesn't come from goals scored, who gets the most trophies or who is the top of the table. It's deeper than that and the hatred (and it is that) is down to ideology, racism and religion.

To give you an example I was talking to a die hard Gers fan about the prospect of his team ceasing to exist, his response was "i'll still be a protestant in the morning". To him the team is a side issue, just one part of his protestant, unionist identity but his most obvious outlet. At the end of that day it still comes down to that catholic vs protestant. Scotland without that is impossible to imagine. What would replace it similarly so.

[Otebo]

I understand how potentially important this is from a social perspective but in terms of football's financial situation this issue is wider than Rangers. Look at the Portsmouth mess or the EPL clubs currently being investigated by HMRC. British football needs root and branch reform. Finances should be tightly regulated and put on a more sustainable footing, fans should be given a share in clubs with the power to to block takeovers and all funding arrangements should be open and transparent. I'd also like to see limits on foreign ownership, although that wasn't an issue in this case.

Scottish football is already made dull by Celtic/Rangers domination. If Rangers folded, one huge global team competing in such a small league would be pointless. Both teams have missed out on massive amounts of revenue by being forced to stay in Scotland. Whether this pushes a move south back up the agenda remains to be seen. Personally I'm all for amalgamating the leagues so that we have a UK-wide structure enabling teams like Celtic and Rangers to reach their full potential. Of course the vested interests which control the various FAs would never have that.

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I think the actual problem with a UK league is that to have a national team without a national league can't be done to my knowledge. So not only would you have to do away with the SPL, WPL and IFL you would need to do with the national teams. That just isn't going to happen. It's the same reason why a UK national team for the olympics was never created before. National pride just isn't going to allow that, especially when the call for independence is growing.

Rather than a merger I was always of the mind the old firm should have went to the English league system in the same way there are 4 Welsh teams in it. Sure Scottish football would suck, but that would effectively be the right level for it.