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Monday, February 13, 2012

The Rangers chickens come home to roost

Considering the larger figures that had been banded around in the press for weeks previously, most Scottish football fans were surprised when Rangers received only £5.5 million for star striker Nikica Jelavic from Everton on the final day of the transfer window.

A degree of cynicism is a requirement when reading the Scottish papers, and so many raised a quizzical eyebrow at claims that Rangers had, a week earlier, rejected an offer of £7 million from West Ham United. Of course, it was in neither party's interests to refute the story; it gave the impression that Rangers were playing hardball and holding out for a fatter cheque, and allowed West Ham fans to believe money was no object in their quest to return to the Premier League.

But, when David Moyes' approach for Jelavic was accepted, I wasn't the only one to suspect that the Croatian was going to Goodison Park because Everton might be offering to pay all the cash up front.

Today, less than a fortnight later, Rangers announced they have filed papers signalling their intention to go into administration. Whilst Jim White's claim on Sky Sports News that "The world of football has been rocked by what has happened to one of it's biggest clubs" certainly overstated the position of Scottish football on the global radar, there is no doubt that this is a huge day in the history of our domestic game.

I'm not even going to try to hide my delight. My hatred of the Old Firm is no secret at all. But the scars left by growing up in the nineties as a non-Old Firm fan, where all my friends jumped on the nine-in-a-row bandwagon have never quite healed. It could easily be argued that there is a huge taint on the countless league titles and other trophies won by the club during Sir David Murray's stewardship, when the Ibrox club paid obscene transfer fees in order to try to compete in the Champions League, as well as to steamroller all domestic opposition.

But that was then and this is now. Right now, there is a realistic concern that Rangers Football Club cannot be salvaged. To many football fans, 'administration' means a way to cheat debts and start afresh, with nothing more than a points penalty. But the Rangers situation is precarious indeed. For a start, the Daily Record reported only last week (the only time I have bought that newspaper in 15 years) that current owner Craig Whyte had mortgaged the next four years worth of season ticket sales in exchange for a short term cash boost - dramatically reducing their scope for bringing in future income.

Many clubs who have been in administration have got some dosh in quickly with a fire sale of players. But the closure of the transfer window prevents Whyte from selling players until the summer. The only way to reduce the wage bill in the short-term would be through making players and staff redundant. There are certainly some higher-profile players who will be earning weekly wages in excess of five figures - Allan McGregor, Steven Davis and Steven Whittaker come to mind - and one only hopes that the claims by Daniel Cousin's agent that he has returned for a second spell at the club on a £5,000 a week contract (he signed a contract for the rest of the season this morning) really is as ridiculous as it sounds; The Gabonese forward looked good during a year at Ibrox before leaving for Hull in 2008, but since then he has scratched around the Greek league and more recently turned up in Gabon's domestic league. He is now 35. If he is the answer, then what is the question?

Anyway, I'm getting sidetracked. We've already talked about the reduced potential for income. What about the money they owe? We already know about the two tax bills they are fighting. The first of these, which would cost them £4.2 million, is still being disputed (though the taxman has a court order forcing the money to be ringfenced in Rangers' accounts). The second, more recent case, a verdict on which should arrive at the beginning of March, would, should Rangers lose, cost them anywhere between £20 million and £49 million. Given that HRMC have been under considerable criticism in recent months for coming to generous arrangements with major businesses over unpaid tax bills, it is not unreasonable to believe that they will fight tooth-and-nail to get raid the Ibrox coffers. If a bill for that much cash turns up in the postbox at G51 2XD, then the greatest administrators and accountants in the world could not save Rangers.

So there is not so much a dark cloud as a cyclone hanging over Govan today. Where do Rangers go from here? How severe could an SPL punishment be? Can the business be salvaged from bankruptcy? If not, can a new Rangers club rise from the ashes, and where would they fit back into the Scottish football system.

And, more importantly from the point of view of a non-Old Firm supporter, could this be the making, or the breaking, of Scottish football?

Some of these questions are easier to answer than others. All I know is that developments over the next few days will be very interesting indeed.

L.

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