A WAR OF WORDS has erupted between the BBC and Rangers FC administrators from Duff & Phelps.
Paul Clark and David Whitehouse, both partners at Duff & Phelps, were appointed on 14 February to the collapsed club.
In last night's BBC Scotland programme, Rangers, The Men Who Sold the Jerseys, the broadcaster alleged that administrators from Duff and Phelps were potentially conflicted in their role.
The argument is centred around whether or not Duff & Phelps partner David Grier knew about a deal that would see the club hand over three years' worth of ticket sales to Ticketus.
Craig Whyte bought the club in 2011 but it was later revealed he used some funding from finance firm Ticketus by selling most of the next three years' worth of season tickets.
Duff & Phelps has launched legal action against Whyte and his lawyer Collyer Bristow claiming that at a meeting, days before the deal was signed, they failed to declare the funds being used to complete the purchase of Rangers were from Ticketus, not Whyte.
BBC Scotland's documentary alleges Grier knew about the deal and had ordered an invoice to be raised to Ticketus in June.
Grier denies any knowledge of the Ticketus deal.
In a response statement Grier said: "I categorically deny that at the time of the Craig Whyte takeover of Rangers, I had any knowledge that funds from Ticketus were being used to acquire the club. This accusation is wrong, highly defamatory and betrays a lack of understanding of the facts.
"Neither I nor any of my colleagues at MCR [now Duff & Phelps] provided any professional assistance to Liberty, Wavetower or Craig Whyte, in raising funds, performing financial due diligence, structuring or agreeing the terms of the purchase of the club from the Murray Group.
"Financial due diligence and other work was provided by Saffery Champness, a firm of chartered accountants who specialise in this area, and our primary role was to provide assistance to Liberty Capital in negotiating a settlement and assignment of the debt due to Lloyds Bank.
"The reality is that when my concerns about the use of Ticketus funding crystallised over the summer of 2011, I took immediate steps to raise these concerns with controlling directors of Rangers and HMRC."
The BBC also claims it has seen an email from Whyte's lawyer to Grier concerning the completion of the takeover, which states that the "Ticketus agreement will become unconditional".
"The email referred to in tonight's programme to Ticketus dated 19 April 2011 mentions the possibility of raising funds for working capital but does not provide any information of quantum or terms of such a proposal. To suggest this email establishes an awareness of Ticketus providing acquisition funding is absurd and ridiculous," said Grier.
"Once we discovered the full extent of the funding relationship between Ticketus, Liberty Capital and the club, we took immediate steps to raise our concern with controlling directors of Rangers and HMRC."
Duff & Phelps is currently in discussions with its legal advisor on whether it will bring a claim against the BBC.
Administrator Clark said: "The allegations made in tonight's programme against Duff & Phelps are untrue, a distortion of the facts and highly defamatory. Discussions are already underway with our solicitors with a view to bringing legal proceedings against the BBC.
"We made a number of offers to assist the BBC in order they would not make the fundamental errors broadcast ... and for some inexplicable reason, the reporter Mark Daly declined these.
"We had also hoped to give interviews stating our case on camera but received strong legal advice against this course of action, bearing in mind the legal proceedings Duff and Phelps have raised against Collyer Bristow. The BBC were informed in writing from our solicitors.
"In broad terms, Mr Daly failed miserably to understand the difference between working capital arrangements for the club and acquisition funding."
The whole lot stinks to high heaven. The sooner its over the better.
Posted by: Kenny, 24 May 2012 | 12:54
the last time it was mccoist that was getting it from the bbc now its the club a hope rangers as a club come out of this ok but for the bbc to not let the facts be told and let the doc go out last night says it all for me that you just want to cash in on the rangers like every one but a no we be back as strong as ever and hope you get a life time ban from ibrox and anything to do with rangers all the stuff is cut and past on your tv show as mccoist pointed out last time yet you want us to watch that and think its true if you do it one time you never stop like last nights doc all was load of pish as per would love to no if any other team has used ebt or is it just rangers thats in the dock ? dont think so
Posted by: thebears, 24 May 2012 | 14:40
You just keep buryıng your head son - when you pull ıt up - everythıng wıll be gone - ıncludıng your team. Whyte dıd not sue - McCoıst dıd not sue and your admınıstrators wıll not sue. So who should we belıeve - someone who says ıt ıs not true - or someone who says - Thıs ıs what I belıeve - feel free.
I know who I belıeve - the BBC.
Posted by: John McMahon, 25 May 2012 | 11:17
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.