BusinessBusiness RecoveryAdministrators could cut 11 players at Rangers

Administrators could cut 11 players at Rangers

Duff & Phelps administrators warn manager Ally McCoist that player cuts or wage reduction is needed to ensure club's future

Administrators could cut 11 players at Rangers

DUFF & PHELPS administrators could cut 11 players at Scottish football club Rangers.

Paul Clark and David Whitehouse, both partners at Duff & Phelps, were appointed to the club on 14 February.

Rangers manager Ally McCoist has been told that up to 11 players could be made redundant in a bid to save the club, the BBC reports.

However, the report claims that Clark and Whitehouse have offered two alternative options including; eight players taking redundancy and other players take a 50% wages cut; or all staff taking a 75% cut to their wages.

It is reported that the club needs about £10m to continue operating until the end of the season.

The administration follows a petition for the club’s winding up from HM Revenue & Customs following non-payment of about £9m in PAYE and VAT after its takeover in May 2011 by Craig Whyte.

HMRC are also involved in a long running tax tribunal with the club over how players were paid.

Rangers FC and the taxman are battling out a compensation case over the club’s use of Employee Benefit Trusts (EBTs).

HMRC claims it is owed £24m in unpaid PAYE due to the club using EBTs, which provide employees with non-repayable interest free loans.

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