Rangers face uncertain future

Rangers yesterday filed notice of their intention to enter administration as they admitted they could be facing a tax bill of “substantially more than £50million (€60m)”.

Rangers lodged papers at the Court of Session in Edinburgh and said a final decision would be taken in the next two weeks.

The Scottish champions will be automatically hit with a 10-point deduction by the Scottish Premier League if they proceed, which would all but end their bid for a fourth successive title.

The Ibrox club would also face a race against time to sort their finances in time to earn a licence to play in Europe next season.

Rangers insisted there was no practical alternative to yesterday’s action but the club also revealed they were in talks with Her Majesty’s Revenue & Customs over a deal to avoid any formal insolvency procedure.

Their dispute with HMRC centres on the use of employee benefits trusts, which were in place a decade before Craig Whyte bought out David Murray last May.

A three-day tax tribunal concluded on January 18, with a judgment normally expected between two and eight weeks afterwards.

But Rangers yesterday admitted victory was not feasible given HMRC’s determination to succeed.

In a statement, they said: “The tribunal relates to a claim by HMRC for unpaid taxes over a period of several years dating back to 2001, which, if decided in favour of HMRC, could result in liabilities and penalties substantially more than the £50m reported, which the club would be unable to pay.”

Whyte, who was jeered by fans as he read out a brief statement outside the main entrance to Ibrox last night, said: “It is extremely disappointing the club finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the club both on and off the field.

“The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago.

“If we do not take action now the consequences and the risks to the club are too great.

“There is no realistic or practical alternative to our approach as HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision, they will ‘appeal, appeal and appeal again’ the decision.

“This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC. Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.

“I can, however, reassure Rangers supporters that the club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect.”

The SPL confirmed a 10-point deduction and a transfer embargo would only be put in place when administration was confirmed.

An SPL spokesman said: “At this point in time Rangers are not in administration and we await developments.

“The instant that they are technically in administration there will be an automatic 10-point deduction and, perhaps of less relevance, an embargo on player registrations.’’