Soccer News

Rangers may sell players if they go into administration

By Ben James Feb 14, 2012, 10:15 GMT

London - The fall-out from Glasgow Rangers' decision that they intend to go into administration will become clear over the next few days as the playing squad of the Scottish Premier League side are told who will be allowed to leave to cut costs.

Rangers owner and chairman Craig Whyte announced on Monday that the club needs to go into administration to avoid the possibility of liquidation in the face of a potential tax bill that could be as a high as 75 million pounds (118.4 million dollars).

Experts say there is no realistic possibility that the club could fold but Whyte was due to meet with players and staff on Tuesday.

The top players will be considered assets and are likely to stay, but administration is likely to see others sacrificed to save money, experts say.

In a statement on the Rangers website, Whyte said Rangers are 'facing massive financial challenges both in terms of its ongoing financial structure and performance and the potential consequences of the HMRC first tier tax tribunal.'

The potential 75 million-pound tax bill relates to payments paid into 'Employee Benefit Trusts' (EBTs), which began in 2001 and ended before Whyte took over in May last year.

If Rangers do go into administration, the penalty from the league is a 10-point penalty, which would leave them a distance behind Celtic in the title race and effectively end their challenge.

But Whyte said he had known for some time that administration might be the club's only real option.

'Frankly, the case for administration in pure financial terms was compelling but I was acutely aware that such a great institution as Rangers could not be viewed exclusively in financial and business terms,' he said.

'It's a bad day for every Rangers fan; there is no getting away from that. 'We have filed a notice of intention to go into administration and we will do that in the next couple of weeks unless a sensible arrangement can be made with HMRC.

'We have been working very very hard to try to come up with an arrangement to avoid this and so far we have been rejected by HMRC.

'It's a slim possibility that something could be resolved in the next two weeks but I think it's more likely that we will go into administration and come out of it a fitter and stronger business and be in a better position to move forward in football terms.'

The Daily Telegraph said on Tuesday that the 'up to eight current or former Premier League clubs' are facing a similar investigation into their use of EBTs.

Read more about Rangers



COMMENT

blog comments powered by Disqus

Latest Headlines in Soccer

Older Talkback

Follow Us

Follow M&C on Pinterest

Search

Custom Search

Also Check Out

Justin Bieber can't move eyebrow after concussion

Justin Bieber cant move eyebrow after concussion
Justin Bieber can't move his eyebrow after running into a glass wall on Thursday (31.05.12) and suffering a concussion. ... more

Pamela Anderson wants to move back to Canada

Pamela Anderson wants to move back to Canada
Pamela Anderson wants to move back to Canada, because she feels like she is 'playing a character' when she is in Los Angeles. ... more

Queen Elizabeth excited about concert

Queen Elizabeth excited about concert
Britain's Queen Elizabeth can't wait for the Diamond Jubilee Concert on Monday (04.06.12), says event organiser Gary Barlow. ... more

Usher: I'm a genius

Usher: Im a genius
Usher has a strong sense of self-belief and believes everything he does is 'genius'. ... more

Jake Shears received death threat

Jake Shears received death threat
Scissor Sisters singer Jake Shears had his security boosted after a death threat against him was intercepted by his management team. ... more

One Direction gain police protect in Canada

One Direction gain police protect in Canada
' X Factor' 2010 rejects have stuck to their word and bulked up on security. ... more

Susan Boyle has emotional motorway breakdown

Susan Boyle has emotional motorway breakdown
'Britain's Got Talent' reject was screaming and crying. ... more

Russell Brand: Tom Cruise is a joy to be around

Russell Brand: Tom Cruise is a joy to be around
'Rock Of Ages' actor says his co-star cooked him a birthday dinner. ... more

Kate Moss dog ruining home

Kate Moss dog ruining home
Supermodel's puppy hasn't been trained yet and is urinating around their home as well as destroying furniture. ... more

David Beckham would love to move back to UK

David Beckham would love to move back to UK
Soccer star and wife Victoria Beckham are tempted to go back all the time. ... more