'Fatal blow' to future of Rangers

Published Tuesday, 12 June 2012
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Rangers Football Club is set to be forced into liquidation, after a no vote by HM Revenue and Customs over plans for a Company Voluntary Arrangement - which would mean the end of the club in its current form.

The decision was confirmed on Tuesday by the leader of the Sevco consortium, which is trying to acquire the Scottish club.

Charles Green said he was hugely disappointed by the lack of support from HMRC for the CVA proposal.

"That disappointment will be felt acutely by Rangers fans across the world," he added.

HMRC are owed more than £21m and believe the decision is the best way to pursue individuals over the debt.

The new company will be free from claims or litigation in a way which would not be achievable with a CVA. Rangers can make a fresh start.

HMRC

But, while Rangers could then make a fresh start as a new company, they would have to apply to re-enter the SPL and the club would be barred from competing in Europe for three years under UEFA rules.

Green said he failed to see the benefits of the decision.

"I can understand HMRC deciding that football clubs which do not pay their taxes need to be punished, but by effectively banning Rangers from Europe for three years, all that will happen is that there will be less revenue generated by the club and consequently less money paid over to the taxman," he said,

"Also, I do not believe that by opting to vote against the CVA proposal, HMRC will generate more cash by pursuing those they believe as responsible - but that is a matter for them."

Green added that he would explore ways to allow the club's 26,000 shareholders to buy into his new company.

"The solemn promise I can make to Rangers fans today is that this club will continue as Rangers Football Club and will continue to play at Ibrox Stadium," he said.

"We will be liaising with the football authorities at the earliest opportunity to establish our position regarding the SPL.

"I, along with my investors who believe that Rangers can have a bright future, will fight tooth and nail to ensure the club recovers from this catastrophic phase in its proud history.

"The fans deserve better and we will work tirelessly to realise their ambitions."

Rangers' administrators, Duff and Phelps, confirmed a "binding" sale and purchase agreement with Green would now come into effect.

The club was forced into administration in February by court action taken by HMRC over the failure to pay millions of pounds in tax after Craig Whyte's takeover in May 2011.

© UTV News
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17 Comments
henry in north belfast wrote (674 days ago):
@heather, but hey it wont be as boring as the scottish 3rd division, but hey i guess you will still be watching while you knit yourself a newco kit without the euro stars on it as newco aint won anything, and hey, no cheating please.
Me in Larne wrote (675 days ago):
Would the ones claiming there would be a lot less sectarianism without rangers be also republic of Ireland fans whose supporters were openly chanting ira over in Poland ? Did Celtic not get fined twice last year for sectarian banners and chants ?
Eric in Bangor wrote (676 days ago):
Celtic's finances will soon start to go down when their fans soon get bored watching them play St.Mirren four times a year. They need Rangers as much as Rangers need Celtic.
Heather in belfast wrote (677 days ago):
ref Henry north belfast... the football team sorry the institution known as Glasgow Rangers Football Club will always be there ,,, yes they have trouble with the hmrc but hey who doesnt ??? the banks included !!! politicians as well .. Rangers may have to start in the 3rd division but hey those who scorn at them on the way down will have to meet them on the way up !!!! but hey it may give celtic fc achance to go down in history as the Glasgow Rangers have namely the best football club in scottish history !!!! oh how boring the spl will be !!!!
Matthew in Ulster wrote (677 days ago):
Regardless of whats thrown at us we will still follow on!
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