Deathwatch on Rangers

There has been much anticipation of the decision on the “Big Tax Case” (BTC) on Planet Fitba.

Everybody knows that this is the guided missile from Hector that will finally kill Rangers.

There is just one point on this scenario and it is that Rangers (1873) is already bleeding out on the floor.

The club went into Administration in February because they had simply run out of money to continue operating.

It was then confirmed that the club had been using the PAYE remittances as a useful source of ready cash for the business.


Very clever.

Dignified too.


Of course readers of this site would not have been surprised at this revelation.

Subsequently, since Mr Whyte bought the club in May 2011 Rangers built up another debt to Hector of over £15 million.

This is probably close to liquidation value of the assets of the club and that is before adding the Ticketus cash and the other creditors.

Duff & Phelps came in and, after a bit of apparent dithering, got the players to accept wages cuts of up to 75%.

The wage deal is over at the end of May.

Yesterday’s report confirmed the information that I had been previously given that the club, despite the wage deal, was still in a cash flow crisis.

The trading loss since Administration began means that the club is still insolvent while…err…being insolvent.

It is a moot point whether or not the club will limp over the line on the final day of the season next month.

Moreover, it is difficult to see how Duff & Phelps will be able to make payroll in June for all of the existing staff once the temporary cuts are restored.

Of course June is a month with no match day revenue.

Given the Ticketus issue then there may well be a smaller “pot” of season ticket money than usual as fans are unsure of where their money will go.

Of course all of this is before the three judges in the First Tier Tax tribunal hand down their judgement.

The BTC is now about as necessary to kill Rangers as a precision guided 1000lb bomb being dropped on Osama Bin Laden’s house  an hour after a Navy Seal put a couple of  rounds of 5.56mm NATO into his head.

It is over.

Ally McCoist and the Rangers Supporters Trust (lovely dignified fellows) have both mentioned the “L” word in the past week.

In fairness the legendary Rangers manager has said that liquidation is “not his preferred option”.

However he conceded that it might well make business sense.

The RST have said that no new owner by summer makes it “likely” that liquidation will happen.

The prospective owners want to acquire the ASSETS of Rangers rather than the current company because that is the way to leave the huge liabilities behind.

Duff & Phelps have said Wednesday 4th April was (yet another) deadline for offers for the club.

Presumably this time they really meant it.

The stark reality now is that no one would buy Rangers as a going concern.

The report from Duff & Phelps proves that there are enough fatal pathogens in Dignity FC without injecting them with the plague of the BTC.

What we have here is a terminally ill patient and we’re just waiting for death to arrive.

The specific cause of the final expiry is merely academic and of interest to the professionals.

These days I have my head jauntily cocked to one side eagerly waiting for the sound of that distinctive death rattle from Edmiston drive.

Oh what a jolly little chap I am!

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