Rangers face liquidation
Rangers now face liquidation, after it became known that Revenue and Customs intend to vote against a proposed company voluntary arrangement at a meeting scheduled for Thursday.
The decision is not a complete surprise, although still a disappointment. It will reduce the amount available to creditors and in that sense the tax authorities could be said to shooting themselves in the foot. However, they have been taking a tough line with football clubs for some time now.
A 'newco' will be formed to ensure that football continues to be played at Ibrox. However, existing players will be released from their contracts so some of the better ones are likely to leave without the club receiving any compensation.
Given the unhelpful, even punitive attitude of the Scottish football authorities, it is uncertain at what level it will be played. Having a club the size of Rangers in the third division would be ludicrous. However, there are some Rangers fans who think that such an outcome would serve clubs who have been calling for such a solution right as they would lose valuable income.
What is more likely is a substantial points deduction which would rule the club out of the title race. There has also been talk of fining Rangers a portion of their gate money. In any event the club will be banned from European competitions for three years, depriving it of valuable revenue.
The break in continuity raises questions about the historic records of the club, including that relating to championships. It is possible that the club might have to be re-named either as Rangers 2012 or as Glasgow Rangers (the name of the city is not currently in the title).