[h=1]Rangers in crisis: Ibrox club has four options on what happens next[/h] Feb 14 2012 NEIL Patey, of global auditing giants Ernst and Young, here lays out the four options for Rangers after Craig Whyte announced his intention to appoint an administrator. Patey believes that Whyte is trying to force a deal with HMRC on their tax dispute, which he says could amount to a liability of £75million. He warns the taxman will not back down so easily but insists this is not the beginning of the end of Rangers. Option 1 IN the best case scenario, Rangers go into administration and get a Creditors Voluntary Agreement (CVA) by March 30. This would mean 75 per cent of their creditors accept a lesser sum over two to three years. This would allow the club to submit audited accounts before the March 31 deadline the SPL expect of all clubs participating in Europe the next season. In this scenario, the only real penalty Rangers suffer will be the mandatory 10-point deduction for going into administration. However, given the time- frame, it is unlikely they will obtain an agreement before the deadline. Option 2 A CVA is agreed – but after the March 31 deadline, meaning Rangers must sacrificeEurope for one season. Also, if they are still in administration when the new season starts, they will begin 10 points behind everyone else as continuing punishment. Option 3 The creditors refuse to agree a settlement, forcing the administrator to liquidate the company and leaving HMRC with little or nothing. Rangers would be able to transfer their assets to a new company and re-invent themselves as a phoenix club, as Leeds United did in 2007. The new club would require an agreement from the SFA and SPL to allow them to take the old Rangers Football Club’s place in the top flight. However, I expect the authorities to approve such an application for no greater reason than Sky Sports’ contract based on the incentive of four Old Firm games a season. Option 4 The doomsday scenario would see Rangers in liquidation, booted out of the SPL and forced to work their way back up from the third division. I can’t see this happening because of the potential implications for the SPL’s TV deal.
It (option 4) really takes the piss that they could be allowed to continue in the top league after liquidation just for the sake of a TV deal. Basically means Celtic and Rangers could do whatever they wanted financailly for the coming seasons and they would forever be guaranteed a place in the top league. Like saying Woolworths should never have been allowed to close due to the amount of people it brought to the high street each weekend. If your business is that badly run then you should be history regardless.
why when they are going anyway? is this so that whyte has no involvement in who becomes the administrator
It means that HMRC can appoint the administrator rather than Whyte and it's in their hands rather than his.
sorry should have made it clearer, the bit i was referring to was Option 4 The doomsday scenario would see Rangers in liquidation, booted out of the SPL and forced to work their way back up from the third division. I can’t see this happening because of the potential implications for the SPL’s TV deal. Sorr
