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03 Oct 2012
HMRC'S TAX BILL at Rangers FC has shot up £73m according to the latest creditor report compiled by administrators from Duff & Phelps.
Paul Clark and David Whitehouse were appointed joint administrators to the business on 14 February. Rangers as a 'club' exists within a new company structure. The 'old' company is in adminstration and houses the debts, including tax owed to HMRC.
Further reading
In earlier creditor reports HMRC was the second-largest creditor with a bill of about £21.4m, behind Ticketus with £26.7m. However, the latest, and final, administrator creditor report shows the taxman is owed £94.4m. No explanation was given in the report as to why the debt owed has increased.
It is also noted in the report that the validity of Ticketus' claims has been rejected by the administrators on the advice of solicitors because there are a number of grounds on which the claim can be disputed in full.
The administrators' remuneration comes in at about £3.2m, as explained in a previous creditor report published in August.
Their remuneration is broken down into two segments; £2.9m for their work from appointment to 29 June, in which the majority of their time was spent arranging a rescue deal (CVA); and £191,039 from 10 August to 14 September.
HMRC, as the then second largest creditor, vetoed the CVA earlier this year causing the club to enter liquidation. In order for a Company Voluntary Arrangement (CVA) to be approved, 75% of creditors by value of debt need to agree the deal.
Following the failure of the CVA the club is now following the Premier League and Football Association structure, where the assets of the 'game', such as player contracts, are transferred to a new club and the old club liquidated.
A creditors meeting is due to take place on 12 October where the administrators will place the company into liquidation. BDO liquidators Malcolm Cohen and James Stephen will be appointed.
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Visitor comments Add your comment
inaccurate and biased reporting
For your you information:
Inaccurate reporting of the status of Glasgow Rangers FC as the club was not "liquidated" the company PLC was, but the football club was not!!! Please see the following quotes form the experts; Duff & Phelps; from their interim report of 10/7/12:4.4 Following the sale of business and assets of the Company, the responsibility for maintaining all trading operations passed to Sevco which continues to operate the Club....10.9. The history and spirit of the Club have been preserved by the sale which completed on 14 June 2012 and it is now the responsibility of the new owners to secure its future. Also, Malcolm Cohen of BDO who are liquidating the old company has said: I t's important to understand that the appointment of liquidators will not mean the end of football at Ibrox - only the end of the company that ran the club'. The company that formerly ran the club is going!
Sources:
RANGERS FC 1872.
Rangers FC by "THE RT HON LORD NIMMO SMITH"
It will be recalled that in Article 2 "Club" is defined in terms of "the undertaking of an association football club", and in Rule I1 it is defined in terms of an association football club which is, for the time being, eligible to participate in the League, and includes the owner and operator of such Club. Taking these definitions together, the SPL and its members have provided, by contract, that a Club is an undertaking which is capable of being owned and operated. While it no doubt depends on individual circumstances what exactly is comprised in the undertaking of any particular Club, it would at the least comprise its name, the contracts with its players, its manager and other staff, and its ground, even though these may change from time to time. In common speech a Club is treated as a recognisable entity which is capable of being owned and operated, and which continues in existence despite its transfer to another owner and operator. In legal terms, it appears to us to be no different from any other undertaking which is capable of being carried on, bought and sold. This is not to say that a Club has legal personality, separate from and additional to the legal personality of its owner and operator. We are satisfied that it does not, and Mr McKenzie did not seek to argue otherwise.
Source:
THE SCOTTISH PREMIER LEAGUE LIMITED
REASONS for Decision dated 12 September 2012
By THE RT HON LORD NIMMO SMITH,
NICHOLAS STEWART QC
And CHARLES FLINT QC
The Commission appointed by Resolution of the Board of Directors of the Scottish Premier League Limited dated 1 August 2012 in relation to RFC 2012 Plc and Rangers FC.
Posted by: Naefear, 04 Oct 2012 | 21:11
Rangers FC
The club (Rangers FC 1872)
Will not be liquidated, the PLC(oldco) formed in 1899 will, the new PLC (The Rangers 2012) newco is the new owners of the club.
RANGERS FC 1872.
Rangers FC by "THE RT HON LORD NIMMO SMITH"
It will be recalled that in Article 2 "Club" is defined in terms of "the undertaking of an association football club", and in Rule I1 it is defined in terms of an association football club which is, for the time being, eligible to participate in the League, and includes the owner and operator of such Club. Taking these definitions together, the SPL and its members have provided, by contract, that a Club is an undertaking which is capable of being owned and operated. While it no doubtdepends on individual circumstances what exactly is comprised in the undertaking of any particular Club, it would at the least comprise its name, the contracts with its players, its manager and other staff, and its ground, even though these may change from time to time. In common speech a Club is treated as a recognisable entity which is capable of being owned and operated, and which continues in existence despite its transfer to another owner and operator. In legal terms, it appears to us to be no different from any othero undertaking which is capable of being carried on, bought and sold. This is not to say that a Club has legal personality, separate from and additional to the legal personality of its owner and operator. We are o that it does not, and Mr McKenzie did not seek to argue otherwise.
Source:
THE SCOTTISH PREMIER LEAGUE LIMITED
REASONS for Decision dated 12 September 2012
By THE RT HON LORD NIMMO SMITH,
NICHOLAS STEWART QC
And CHARLES FLINT QC
The Commission appointed by Resolution of the Board of Directors of the Scottish Premier League Limited dated 1 August 2012 in relation to RFC 2012 Plc and Rangers FC.
http://www.scotsman.com/sport/football/sfl-division-three/newco-rangers-must-answer-oldco-charges-insists-commission-chief-1-2542646?
Please make this distinguishably in future articles please.
Posted by: naefear, 04 Oct 2012 | 22:00