Rangers FC Enters Administration
Scottish Premier League champions Rangers have entered administration, with the move made to ward off an attempt by Her Majesty’s Revenue and Customs (HMRC) to appoint its own administrator.
However, its hand was forced on Tuesday as HMRC made an unsuccessful legal bid to appoint its own administrator at the Court of Session in Edinburgh.
Rangers also incur a 10 point penalty, all but ending their Championship title hopes.
The Glasgow club has appointed London firm Duff and Phelps as administrators, and they will now take over the running of the club while it seeks to address its debt problems.
The appointment follows a petition for administration presented to the Court of Session in Edinburgh today by HMRC following the non-payment of circa £9m PAYE and VAT following the takeover of the Club in May 2011.
Paul Clark, partner, Duff & Phelps stated: ‘HMRC have been working closely with the Club in recent months to achieve a solution to the Club’s difficulties. However this has not been possible due to ongoing losses and increased tax liabilities that cannot be sustained.’
‘We are working together with management and its major creditors including HMRC to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned.’
Rangers’ tax case with HMRC could see it hit with a substantial bill for back-taxes, interest and penalties.
Clark concluded: ‘We would like to take the opportunity of thanking the fans for all their past and present support and hope we can rely on them in the future. Rangers has a long and proud sporting tradition – one we all wish to see continue. All stakeholders involved with Rangers are working hard to ensure the long-term future of this national institution. We will be making a further more detailed statement later in the week.’
