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Monday 30 March 2020

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New blow for Rangers with threat of SPL sanctions

Rangers have suffered a second body blow in the space of 24 hours with the confirmation on Thursday that any newco would face sanctions from the Scottish Premier League should the ruling body’s ongoing investigation into alleged non-disclosure of payments to players find against the beleaguered Glasgow giants.

New blow for Rangers with threat of SPL sanctions
Club in crisis: Rangers have suffered a second body blow in the space of 24 hours Photo: PA

The SPL’s chief executive, Neil Doncaster, disclosed to newspaper reporters that their legal team are currently studying every contract issued to players by Rangers since the formation of the elite division in 1998 and 2010.

It covers some of the same ground as Her Majesty’s Revenue & Customs’ case against the club for the alleged misuse of Employee Benefit Trusts.

HMRC claim that the scheme, introduced by former owner Sir David Murray, amounts to tax evasion and a verdict from the top-tier tax tribunal (which could rule Rangers to be liable for up to £75 million in unpaid tax plus penalties) is imminent.

On Wednesday Rangers lost an appeal to the Scottish Football Association’s independent tribunal, which upheld the original punishment of a 12-month transfer embargo and a fine of £100,000 for breaching their articles of association.

The news for the consortium fronted by former Sheffield United chief executive Charles Green then took a turn for the worse when Doncaster revealed that any sporting penalties imposed by the authorities on the club as it currently exists would be passed on to a new entity.

“You would expect the football club to take with it responsibility for anything which emerged from that investigation,” said the latter.

“It will take some time and, ultimately, it’s being done by our lawyers. They will bring the case forward to us and the SPL board when they can do so.

“How long will it take? How long has the HMRC case taken? These things take as long as they take. These are complicated matters, far more complicated than people might think.

“The issue will be; have any of our rules been breached? If there is a prima facie case that they have then we will act accordingly.

“The rules are there and all clubs are treated equally under the current rules. The investigation is going on in accordance with the rules set down at various stages of the SPL’s history.

“There is only one rule within our whole set of rules where the breach has a pre-determined sanction: if you go into administration the sanction is a 10-point sporting penalty, although perhaps that will be increased.

“All the rest of the other rule breaches have 18 potential sanctions, unlimited in scope. Whoever makes the decision on any disciplinary matter, be it the board or an independent commission, there is no set sanction in place.”

Doncaster, though, believes that the newco option has become unfairly discredited in the media since Rangers were plunged into administration over three months ago.

“Whenever I speak to people about the distinction between a Company Voluntary Agreement and a newco what I keep being told is that it’s simply wrong that any club should be able to create a newco and shed debt - as if a CVA doesn’t lead to the shedding of debt,” he said.

“Administration is the protection the court gives you when you can’t pay your debts. There are two ways out of that; one is a newco, one is a CVA.”

Green was at Hampden on Thursday to be grilled by Doncaster and the SFA’s chief executive, Stewart Regan. “When we offered to buy the club we realised what the potential was,” said Green.

“Last night’s announcement was an option we’d considered when we bought the club.”

Asked whether he was considering a legal action against the SFA for dismissing their appeal, he replied: “We’re discussing all the options that are available to the club."

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