Wings Over Scotland

The current issue of Private Eye (which also features a fascinating full-page piece on Craig Whyte) relates news of another Labour dividend for the people of Glasgow – the decades-long neglect and imminent destruction of a much-loved green space. We’ve attached the story below for your convenience.

On the upside, though, we’re pretty sure we know where another large green space, which already comes with goalposts, is about to become available.

We’re losing track of all the threats and counter-threats about next season’s SPL. Let’s recap on the latest positions as far as we can discern them:

– Rangers fans are going to boycott their own home games as long as Charles Green remains in charge of the club.

– Rangers fans are also going to boycott away games if penalties are imposed on the newco’s admission to the SPL. (Which seems to be an absolute certainty if they’re admitted at all.)

– Celtic fans are going to boycott away games at any club who votes Yes to admitting the newco (which would of necessity mean at least eight of the 12 teams in the league, possibly including Celtic).

– 54% of Celtic fans are going to boycott ALL games if New Rangers are admitted to the SPL. (A further 36% will boycott Rangers games only.)

– 56% of fans of the other 10 SPL teams will also boycott ALL games in those circumstances. (A further 34% will boycott Rangers games only.)

That seems to be pretty much everyone. As far as we can tell, if Rangers are playing in the SPL next season under Charles Green, the average 2012-13 SPL attendance is going to be about 250 people. We’re not sure Sky are going to be very happy.

We don’t even like the Doors, but we’re going to reference them twice in the first 30 words: this really is The End for Rangers FC. We’ve passed the evening absorbing and analysing the most recent developments in the saga, and as far as we can see they’re the last straw – there is now simply no remaining way back for the Ibrox club.

Tens of thousands of words have been written on the subject in newspapers and online this week alone, and tens of thousands more are going to follow, so we’ll make this as concise as humanly possible. These are the obstacles in the way of The (New) Rangers Football Club participating in Scottish football in season 2012-13 and beyond:

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New Rangers chairman (in both senses of that phrase) Malcolm Murray was fighting fire with petrol at the weekend as he embarked on a charmless offensive aimed at bullying other clubs into admitting the sort-of-new Ibrox club directly into the SPL. Murray (no relation, we think) has quickly rubbed everyone else up the wrong way with a series of boneheaded pronouncements portraying Rangers as victims and displaying not a hint of contrition, and it’s a tough call as to which has been the most crass.

We have a particular fondness for “There is no point in killing the patient while he’s trying to recover. Do that and the whole ward dies”, which shows a disturbing lack of knowledge about how hospitals work, on several levels. But it’s the sentence that came after it, in which Murray claimed that the other SPL clubs rejecting New Rangers would be a “suicide pact”, that’s perhaps the most eye-catching.

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If you’re anything like us, you’ll have been frustrated by most media coverage of the Rangers liquidation saga, and in particularly the failure of journalists to ask the questions that ordinary people are asking over and over again on Twitter and internet messageboards, or just shouting at the telly.

So we were hugely impressed when professional insolvency practitioner Maureen Leslie of MLM Solutions, who has recently appeared on both Newsnight Scotland and Reporting Scotland in connection with the Rangers case, held an online Q&A on the subject today (along with the company’s senior manager Allan McLeod), devoting over an hour of her valuable time to answering questions from clueless members of the public such as ourselves.

Below is an edited transcript of the proceedings (leaving out questions that were outwith MLM’s expertise). We haven’t changed the content of any questions or answers, but have corrected typos, occasionally made slight adjustments to wording for clarity, and grouped questions on the same aspects of the situation together. (Suspicious readers can view the original unedited webchat in full here.) We hope you’ll find it as informative and enlightening a resource as we do.

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First, a disclaimer-stroke-apology: Wings Over Scotland isn’t a football blog. But as we’ve said before, in our opinion the fate of (The) Rangers FC will have a far greater influence on the outcome of the Scottish independence referendum than anything Johann Lamont will ever say or do in her life (something which certainly applies to her current pitiable carping about BSkyB), so we have to look at the bigger picture, and today that means talking about Rangers again.

It’s fair to say that Walter Smith’s intervention in the affair yesterday morning really put a tiger among the turtledoves. Rangers fans unsure about giving Charles Green their full backing – but ultimately likely to bite the bullet and go along with him for want of any alternative – had a new straw of hope, and wasted no time in clutching at it, as the influential Rangers Supporters Trust immediately asked fans not to buy season tickets unless Green stood aside to make way for Smith’s consortium.

The move places another obstacle in front of Green turning his newco Rangers into a viable business, to add to the many challenging ones he already faced – particularly hanging onto the playing and coaching staff (including manager Ally McCoist, whose departure would surely scupper any chance of supporters getting behind Green) and successfully negotiating entry into the SPL. But unlike most of the media, which is this morning reporting the Smith group’s succession as all but inevitable, we’re not sure Green will be all that concerned.

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We’ve been having a little poke around in the insolvency laws today, and we have to inform Wings Over Scotland readers with shame and regret that we made a mistake in our Rangers Liquidation FAQ a couple of days ago. It turns out that it is in fact permissible for a new company to take over the name of an old one, so long as the old company was purchased in the process of liquidation, an exemption which would seem to clearly apply in the case of Rangers.

In the light of bizarre and intriguing recent developments, then, we’re faced with an interesting prospect: a new Rangers FC, playing next season under the old name, in the old colours, with the old history, in the SPL, at Ibrox Stadium, led by Walter Smith, with the current playing squad, completely free of debt and with a £20m bank balance from season ticket sales. (After paying back the bargain-basement purchase price.)

One can only imagine the tone of triumph from the Govan club’s friendly supporters.

The Big Tax Case would be irrelevant, buried with the oldco, as would the SFA investigation into dual contracts and the punishment for bringing the game into disrepute. Tens of millions of pounds owed to the taxpayer would simply disappear in a puff of smoke, as would the millions owed to other football clubs, to Ticketus, and to hundreds of smaller creditors for whom the money could (and now will) be the difference between their business surviving and dying.

The new Rangers wouldn’t be eligible to play in European competitions for three years, but business would otherwise carry on exactly as it did last season without interruption. It doesn’t seem much of a punishment for 10 to 20 years of deliberate, blatant, industrial-scale cheating, robbing other clubs of tens of millions of pounds and driving the Scottish game to the brink of destruction in the process, does it?

The above is, of course, a best/worst-case scenario according to which side of the debate you’re on. Even if the new Rangers could secure an 8-4 Yes vote to their entry into the SPL, the SFA could apply conditions and sanctions, as could the other clubs in return for their vote. But the new Rangers could always renege on any promises it made (eg in respect of agreeing to a change in SPL voting rules or sharing TV money), and it could challenge any SFA conditions in the civil-law courts, were the SFA to be so toothless as to let them get away with doing it previously.

The press is reporting that the attitudes of several of the the other clubs in the top division is hardening against the notion of admitting the phoenix Rangers directly to the SPL. In the circumstances we can’t say we’re surprised.

The fallout from HMRC’s rejection of the Rangers CVA has, of course, only just begun. Journalists and bloggers, us included, will be spending a considerable amount of time speculating wildly about the likely outcome of the club’s now-inevitable liquidation. So let’s quickly take stock of what’s fact and what’s guesswork.

(Please bear in mind that Wings Over Scotland is not a lawyer, and that your house may be at risk if you don’t pay tax on it for 20 years.)

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Rangers Football Club, formed in 1872, will formally cease to exist later this week. In a surprise development (in terms of its timing, not its content), HMRC have officially stated that they will reject the club’s proposed Company Voluntary Arrangement at the creditors’ meeting scheduled to take place this coming Thursday, June 14. The news was confirmed when the club’s administrators Duff & Phelps issued a press release stating their intention to go ahead with a plan to sell Rangers FC’s assets to a consortium led by businessman Charles Green for £5.5m.

There is, however, a great deal of debate about whether such  plan can go ahead. A fascinating blog by Scottish lawyer Paul McConville last week observed that HMRC had already put in place its own preferred liquidators should the CVA proposal be rejected, and it’s hard to see how Duff & Phelps can go ahead with the asset sale in the event of a legal challenge from creditors. Since HMRC has rejected the CVA and has its chosen liquidators standing ready, it seems highly likely that it, or some other creditor/s, would mount such a challenge.

There can be little doubt that the assets of Rangers FC – the playing staff and property portfolio, including Ibrox Stadium and Murray Park – ought to be able to realise significantly more than the £5.5m Green is offering. (Since the money Green proposed to use to buy the club with was in the form of a loan to be recouped from the survival and continued trading of the club, it’s also uncertain whether it’s actually on the table in any real sense.)

Even if the players’s contracts are held to be voided by the liquidation of the club (also the subject of debate) and they can move on without any transfer fees, it’s difficult to see how the property alone, even allowing for its partially- listed status, could fail to be worth at least double the supposed sale price, and the liquidators will be duty-bound to maximise the returns for creditors by at least opening the sale process up to competing bids, including those not seeking to use the property for football purposes.

Duff & Phelps and Charles Green have both insisted that despite liquidation Rangers Football Club will survive, under the same name, and continue to play at Ibrox. Such claims, stated by both parties as certainties, seem to lack any credibility. Further intriguing developments, we’re sure, are not far away.

Much as Scots have grown accustomed to trying to pretend otherwise, you'll probably have noticed that there's currently another international football tournament going on without us. This evening sees the first appearance in the European Championship of the England team, the only side competing in the entire competition who don't have a national anthem to call their own.

Over two decades of living in England hasn't changed this writer's feelings towards the country's international team much. I still want them to lose – not because I hate the English people, but precisely because I like them.

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Much as Scots have grown accustomed to trying to pretend otherwise, you’ll probably have noticed that there’s currently another international football tournament going on without us. This evening sees the first appearance in the European Championship of the England team, the only side competing in the entire competition who don’t have a national anthem to call their own.

Two decades of living in England hasn’t changed this blog’s feelings towards the country’s international team much. Generally speaking we still want them to lose – not because we hate the English people, but precisely because we like them (see below). In the case of Euro 2012, though, we’re going to make an exception.

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The independence referendum is roughly two and a quarter years away. (Remember how recently it was two and a half? Time flies when you’re having fun.) But two things that could happen within the next three weeks could do more to decide it than a thousand embarrassing TV “debates” or multi-million pound campaigns. For those of you in the heretic camp, we apologise in advance, because to find out why we’re going to have to talk about football some more.

This week sees the announcement of the final 18-strong Team GB football squad for the Olympics. We’ve already looked at the potential implications of any Scot featuring in the selection, although to be frank with just 18 players to be chosen we’ll be surprised if any make it on merit anyway, never mind the politics of the situation.

The other thing happening this month, of course, will be the SFA Appellate Tribunal’s reassessment of the club’s punishment on charges of bringing the game into disrepute. Or at least, it might – according to the Herald, Rangers haven’t yet ruled out a further appeal to the Court of Session:

“Rangers welcomed the verdict that the SFA were not in a position to hand down a signing embargo but may yet appeal the decision to return the case to the Appellate Tribunal, believing the case should instead be judged by a panel at the first stage of the process.”

It is extremely difficult to overstate how much such a course of action would enrage FIFA, who are already furious that civil law courts have been involved in the case at all rather than purely sporting ones. Were the Ibrox club to be insane enough to engage the CoS a second time, the international body would be likely to impose savage sanctions on the SFA, which could very well include the banishment of the Scottish national side from competitions.

The phrase “90-minute patriots” was coined as a slight on Scottish people whose sense of national identity was restricted to the duration of football matches. Nonetheless, there are a great many such people. This month, Team GB and Rangers FC between them could set in motion a chain of events which will bring about the end of Scotland as a footballing nation. In our view, such a scenario would turn the polling figures for the referendum round overnight. We’ll be watching with interest.