The death in 2012 of financially doped Rangers should have been a teachable moment for Scottish Football.
Indeed, the fact that the original Ibrox club had been allowed to self-destruct should have led many of Planet Fitba to have a long look at themselves.
Above all else, it was a failure of governance.
The chaps on the 6th floor at Hampden allowed Murray’s financial vandalism to continue over two decades.
Indeed, the SFA President in 2012 was in the room when the first tax wheeze was agreed in 1999.
Of course, all of that should have been investigated by the Fitba Fourth Estate.
Instead, they obediently formed a queue for extra helpings of succulent lamb.
The myriad failures of the Stenography Corps in Fair Caledonia is for another day.
However, the Rangers debacle could have been sorted in 2012 by the introduction of Financial Fair Play (FFP) regulations for the domestic game.
Instead, all of those who were complicit in the death of Rangers have doubled down to squeeze more revenue out of Old Firm Ltd.
The moral hazard of allowing the Ibrox franchise to continue is now self-evident.
Mr David Cunningham King was quite correct when he said that Sevco only needs to win the league once.
That could be this season.
It would open the door to the riches of the Champions League Groups Stages, and that would flip the financial advantage on Celtic.
If this happens, then it would be a fitting epitaph to Heated Driveway Productions.
Failure to pursue the governance failures in 2012 now haunts those in the Parkhead Boardroom.
In 2011 the current Celtic CEO and Martin Bain (then the senior functionary in the Blue Room) was in correspondence about selling the Old Firm product to the English Premier League.
One can only speculate what would have happened if the news of the Wee Tax Case had reached the Parkhead boardroom at that point.
Consider this; you are about to embark on a lucrative venture with a business partner.
Then you hear that they might have a liability that will prevent them from getting a vitality needed revenue stream.
What do you do?
Well, you certainly keep it to yourself.
The following season when Super Salary failed at Malmo that night in Sweden the die was cast.
Without Champions League money Craig Whyte’s regime simply didn’t have the cash to see out the season.
Moreover, your Humble Correspondent was very very clear about that at the time.
Of course, if the rules had been applied appropriately, then Rangers should not have played in UEFA competitions for season 2011-2012.
Now we are very close to that situation with Sevco.
There is, however, an important distinction.
In 2011 a potential liability had become a payable to a taxing authority.
The same has happened now, but there IS a payment plan in place.
There was no such agreement in situ back in 2011.
Some of the major characters in this saga have moved on since Super Salary was in the Ibrox dugout.
However, the chap at Celtic is still there.
He knows that the R12 requisitions have an incontestable case.
The sworn evidence in the Craig Whyte trial of 2017 established in forensic detail that Rangers were in breach of UEFA regulations prior to playing in Europe in season 2011-2012.
Three years on the Celtic Board think that moving on this issue is “unnecessary”.
Meanwhile, I’m hearing that the RIFC year-end accounts are a “shitshow” and their non-appearance is, in part, due to a dignified disagreement about contingent liabilities.
Remember, these accounts will give the financial state of affairs up to June 30th, 2020.
However, in the notes important “post balance sheet events” should be included.
My thoughts are with their auditors at this difficult time.
Rugger Guy has gently tutored me to read a set of accounts the way I used to progress through the Daily Record as a kid, i.e. from the back page first.
It is not a coincidence that FFP in the Scottish domestic game would only impinge on the Ibrox franchise.
The very fact that they have had to agree on a payment plan with Hector proves that they have been fielding a team that they cannot afford.
Back in 2012, I wrote about the “moral hazard” of the Ibrox situation.
Well, we are back there again.
That, in a sense, is not the fault of those in the Blue Room.
Dear reader, I am Jeffersonian in my approach to those in positions of authority and influence.
Essentially power must be held to account, or the powerful will misbehave.
It has always been thus.
That is why a free press is a sine qua non of any functioning democracy.
This site has become an accidental success as a samizdat for Planet Fitba.
The very fact that it exists points to the utter failure of local media in Glasgow to scrutinise the Ibrox franchise.
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“The very fact they have had to agree on a payment plan with Hector proves that they have been fielding a team that they cannot afford.”
Imo this is not strictly true… yet.
Every year their directors (or new “investors”) stump up as required. They are operating within the current rules (albeit at the edge of the rules) in using payment plans to delay tax payments. As long as these are paid eventually then they can afford the team.
When we were running up 30M+ debt under MO’N could we afford that team? Technically yes as we scaled it back and cleared the overdraft debt / loans back over time.
The problem for me is if they delay payments, win the league then do a quick pre-pack admin (as I think the rules now allow without the need to phoenix and rise up through the leagues again?) – at that point no one will look back at what they won as only then is it proven that they couldn’t afford it…
Hearts accomplishments under Romanov are viewed in a similar way by some Hibs fans but the record books stand…
Dear SMSM. When can we expect a follow up.
Kind regards,
Scottish Football.
Looks. Like. Some on the. Sixth. Floor. Are trying. To get out of Dodge city. Before the Agm
When you talk about contingent liabilities is that a known known under the Donald Rumsfeld guidelines to what we do and don’t know? What I do know is there was a large hole in the last accounts , lots of outstanding transfer fees yet to be settled , court cases that had been lost but damages yet to be announced , loans due to Close Leasing and Limpopo Dave and possible pending legal action from Hummel and Elite . That was before a deferral of wages and the unseen loss of gate receipts from the current health situation. It’s of little surprise that taxes have been held back to allow them to continue functioning . With access to CL riches their get out of jail almost free card it would be the mother of own goals to fail to get a euro licence due to breaching the debt limits set by uefa. As the accounts only cover events up to end of June they wont include the transfers of Itten and Roofe at a combined €8m so regardless of how bad the accounts look the reality is they will be a lot worse than that.
Even with a payment plan, isn’t that classed a a tax liability and as such be a subject UEFA should be looking into, regards licensing . We could all spend more money on players and then set up “catalogue repayments” for the revenue services, but only one club seems to get away with this stuff, time and again. What will it take to get the SFA to create a level playing field ?
Has the new “Investor” took a wild punt on Champions League riches?
It would appear that way.
Of course the Limpopo Jet Setter will no doubt have first dabs on any windfall should it materialise.
After Hector and Big Mike have had their slice of course 😉
Desperation,very poor governance,no FFP rules,referees compliance and a mysterious source of cash,and lastly,NO accountability to the stock market,these are the main things that keep sevco alive.
One klub benefits from all of the above,always has and always will.I believe they amended the regulations and we will see soon enough… they will squirm out of the pending admin event.
I hope I’m wrong on that one,thanks Phil🍀
They will almost certainly limp along consequence and scrutiny free as long as the team on the park is managing OK. I said last year they will bankrupt themselves to try and win this year. Essentially it’s a gamble: win the league and it pays off, don’t win and it’s goodnight Vienna. You can bet your bottom dollar a compliant media and unofficial hampden based cover ups will be in force as long as the former remains a possibility. Perhaps even with the silent complicitness of a certain Lawell. This was the season to Bury them, possibly for good, after 8 years of overspend then a pandemic. But we have been poor at scouting and tactically absent this season. We must turn things around quickly or we risk letting them off the hook.
Ah, but there is a difference between 2012 and today.
Today, the new-ish SFA leader is the highly experienced, highly capable CEO Ian Maxwell.
I’m sure he’ll sort out everything in a thoroughly professional and honest manner.
I’m equally sure that the CEO will keep President Petrie – the architect of the shameful ‘5 Way Agreement’ – well way from operational decision making… 🙁
Why is nothing being done or why hasn’t celtic followed this through to the bitter end