Glasgow Rangers' administrators find 24 million-pound black hole

By Ben James Feb 16, 2012, 21:08 GMT

London - Glasgow Rangers' venture into administration became a little murkier on Thursday as a 24 million-pound (37.7 million dollars) black hole in the club's finances was revealed.

With HMS Revenue and Customs chasing them for an unpaid tax bill of 9 million pounds dating back to when Craig Whyte took control last May, the famous Scottish club went into administration on Tuesday.

Rangers owner Whyte had already said that the eventual tax liability could be as high as 75 million pounds but on Thursday, joint administrators Paul Clark and David Whitehouse revealed that they had no idea where a 24 million-pound loan from Ticketus had gone.

Ticketus had been hoping to profit from future season ticket sales, but with the debt apparently not secured against the assets of the club, the firm would be unlikely to get all of their money back should Rangers emerge from administration.

Going into administration cost Rangers an immediate 10-point deduction in the Scottish Premier League and some observers suggested that they could be forced into liquidation.

But Clark and Whitehouse said the first two full days of administration had shown them that the club should be able to come out the other side.

'As a result of our preliminary assessment we are wholly confident that Rangers will continue as a football club,' Clark said.

'We do not think that liquidation and the closure of the club is a likely outcome at all. We need to stabilise the financial position and ensure from now on income exceeds expenditure.

'We fully understand the 140 years history of Rangers Football Club and are taking steps to ensure this history will endure.'

British prime minister David Cameron, on a visit to Scotland, said he hopes Rangers would continue to operate as a club because of its rich heritage.

'I want that club to survive and to thrive,' he told the BBC. 'It has an extraordinary history, it has a very special place in many people's hearts in Scotland and no one wants to see that club disappear.

'I hope that HMRC will work as closely as they can with the administrators to try to solve the problems, to try to resolve the issues.'

Clark and Whitehouse said they had spoken to all the Rangers players and to their manager Ally McCoist, to tell them that a full review of staffing would be necessary in the coming days.

Several players are likely to be sold to reduce costs but McCoist said he was not going anywhere and that he had no doubt they would survive in the end.

'We are in a position at this moment in time where the club is maybe as low as it has been - possibly ever,' he told Sky Sports.

'We have to put our trust and our faith in getting the club to a better place and the future will hopefully provide that.

'The club will come out of this the other end, of that I have no doubt and that is without doubt the most important thing.'