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Started by quattrobhoy on 13-Mar-2011 16:35:01

Here we track the trials and tribulations of clubs whose performance on the balance sheet is often worse than their performance on the pitch.

quattrobhoy - 13 Mar 2011 16:35:55 (#1 of 8032)

Reading chairman Sir John Madejski has warned the Football League that it must install a salary cap or “a lot of clubs will disappear”.

quattrobhoy - 25 Mar 2011 14:31:39 (#2 of 8032)

Professional Footballers' Association chief executive Gordon Taylor admits debt levels in clubs is a concern and wants measures introduced to reduce the risk of future financial problems.

quattrobhoy - 27 Mar 2011 10:10:02 (#3 of 8032)

Football players can no longer be sent to Coventry...

quattrobhoy - 01 Apr 2011 16:36:35 (#4 of 8032)

It's taken the best part of a year for them to admit this is true...

The chairman of Rangers FC fears the club could go bust if a tax case goes against the Scottish champions.

More background here

Moschops - 08 Apr 2011 10:00:26 (#5 of 8032)

Chelsea and Man City would be banned from Euro comps if rules were applied next season

quattrobhoy - 09 Apr 2011 13:17:17 (#6 of 8032)

Interesting analysis of Murray's 21 years in charge of rAngers...

dominoboy - 09 Apr 2011 14:13:07 (#7 of 8032)


Tosser. As are many other references. I could cobble together a similar analysis, ken, Dinnae buy into such bobbins.

dominoboy - 09 Apr 2011 14:14:08 (#8 of 8032)

Best focus on oor own lot and (try to) ensure they stay safe :-)

quattrobhoy - 09 Apr 2011 15:45:25 (#9 of 8032)

I was actually expecting dreams to have a good go at it when he returned from Madrid!

quattrobhoy - 08 May 2011 21:25:24 (#10 of 8032)

Lord Sugar, one of the country's leading entrepreneurs and a football fan, investigates the business side of the beautiful game. Despite generating billions in TV and other income, the professional English game is struggling to make ends meet. Most Premier League clubs are in the red, and debt stands at 3.3 billion pounds.

quattrobhoy - 08 Aug 2011 16:53:28 (#11 of 8032)

It is understood that HMRC has instructed a firm of sheriff's officers to carry out an "asset evaluation" at Ibrox this week.

VendorOfQuackNostrum - 08 Aug 2011 22:18:46 (#12 of 8032)

They'll be ok once the Champions League money starts rolling in, though.



quattrobhoy - 10 Aug 2011 21:21:39 (#13 of 8032)

Sheriff Officers have visited Ibrox as Rangers' tax dispute with Her Majesty's Revenue and Customs continues.

The officers served papers as part of the process of payment.

Rangers face a bill of £2.8m which they are willing to pay but the club dispute a fine that comes with it of about £1.4m.

Discussions are ongoing and Rangers are so far refusing to comment. Rangers confirmed they were being investigated over a tax issue in April 2010.

quattrobhoy - 15 Aug 2011 21:18:26 (#14 of 8032)

Hearts have insisted that an outstanding tax bill will be paid in full on Tuesday following a threat to put the club into administration.

A petition for an administration order was lodged by the Advocate General for Scotland on 29 July, granting Her Majesty's Revenue and Customs the right to serve the order on the club.

quattrobhoy - 19 Aug 2011 08:57:09 (#15 of 8032)

Everton under pressure from their bank.

quattrobhoy - 30 Aug 2011 16:43:53 (#16 of 8032)

Perhaps Rangers should be Talking to the Taxman About Poverty

quattrobhoy - 30 Aug 2011 20:57:42 (#17 of 8032)


quattrobhoy - 02 Sep 2011 10:17:50 (#18 of 8032)

Busy couple of days at Ibrox...

Wednesday night's story was that there had been "bids" for Nikica Jelavic, supposedly for as much as £9m from an "unnamed agent on behalf of an unnamed club", exceeding Leicester's previous £6.5m "bid", were ultimately rejected. There are reports that Leicester only made an enquiry - and the higher "bid" may have been fictitious (see stories below)

Propaganda for unquestioning orcs...

Celtic Chief Exec, Peter Lawwell's response to the bid story

More importantly is news of a second visit related to the taxman's assessments of Rangers' tax liabilities, as reported by the BBC and the Grauniad.

Background on "rumours on social networking sites"...

There's lots more smoke around now but this issue has been smouldering for years and HMRC is apparently holding it's accelerants back for release when the tribunal comes to its conclusion.

quattrobhoy - 06 Sep 2011 16:30:56 (#19 of 8032)

Looks like all the action is in and around SW Glasgow...

On Friday there was the (not very widely reported) story of HMRC "ringfencing" a sum (apparently in excess of £3m)- by arrestment, actioned by Bank of Scotland, against Rangers by HMRC.

Today, the print (not online) edition of the Herald has the story about a Glasgow law firm, Levy & McRae, suing Rangers for £35k.

quattrobhoy - 10 Sep 2011 12:07:39 (#20 of 8032)

Someone has leaked what appears to be the legal papers for Martin Bain's (Rangers' previous CE) claim for his dismissal (mainly done through the press). It starts off with the grounds for demanding £1.3m (he was on £400k plus bonuses PA).

Then it gets juicier from page 10...

Further the pursuer contends that there is a real and substantial risk that enforcement of any decree in the action to follow hereon would be defeated or prejudiced by reason of the defender being insolvent or verging on insolvency.

The balance sheet for the defender in the last set of published accounts is for the year ended 30 June 2010. The balance sheet shows apparent total assets of about £136 million. It shows total liabilities of about £65 million. There is an apparently healthy surplus of assets over liabilities of over £70 million. Nonetheless, the club has been under pressure from its bankers to reduce its borrowings. Under that pressure the club, under the pursuer's management, has reduced its borrowings from the bank to about £18 million as at the end of May 2011.

Notwithstanding the apparent value shown in the defender's accounts, Sir David Murray sold his shareholding amounting to in excess of 85% of the shareholding in the defender to Mr. Whyte for a consideration of £1 and a taking over of the indebtedness to the bank. Mr. Whyte did not eliminate the debt. Rather he took over the debt so that he could enjoy the security which the bank held for its debt. The assets which enable the defender to state a positive balance in the balance sheet are the training ground and Ibrox stadium.

The valuations upon which the most recent revaluations in 2008 were based, were not on a forced sale basis. If the company becomes insolvent or incapable of meeting its liabilities as they become due it is likely that the stadium and the training ground will not realise that value. Further the stadium is not an asset that the club can use to reduce its debts without ceaslng to trade.

In addition to the liabilities shown in the balance sheet, the club is facing a claim for unpaid tax to HMRC of about £35 million together with £14 million of interest and penalties constituting a total claimed liability of at about £49 million. The liability claimed by HMRC relates to an Employee Benefit Trust and its operation over a period of a number of years. The defender is contesting the liability. The relevant tax tribunal is due to complete consideration of the defender's appeal against the assessment in November 2011. In the event that HMRC are successful, in whole or in substantial part, the defender will not be able to pay its liability. It will go into insolvency.

The independent committee of the Board of Directors of the defender asked Mr. Whyte before his takeover of the defender what he proposed to do with the potential tax liability. Mr. Whyte indicated that if the club had to pay a tax liability in respect of the Employment Benefits Trust he was prepared to pay £10 or £15 million. Beyond that he would let the company go under.

As a result of concerns about tax liability and liability for wrongful trading the defender's Board of Directors prior to the take over by Mr. Whyte were making arrangements with the defender's bankers to to ring fence the subscriptions from season ticket holders to guard against those sums of money being lost in the event of there being a substantial tax liability. It is understood that Mr. Whyte has not ring fenced those monies collected from season ticket holders. What is more it is understood Mr. Whyte has arranged for the defender to assign its season ticket income for the next four years to a London finance company in exchange for cash flow at the present time.

Further Mr. Whyte prior to his take over had indicated to the Independent committee of the Board of Directors that he would inject £5 million working capital into the defender, £5 million into the team, £1.7 million for immediate capital expenditure and would pay off the current tax bill of £2.8 million. The pursuer understands that he has not made all of the payments. He certainly had not done so by the time of the pursuer's suspension. Further a number of suppliers each due sums in excess of £20,000 have not been paid timeously.

The defender is not paying its debts as they fall due. In these circumstances it is submitted that there is a substantial risk that the pursuer's ability to enforce any decree to follow hereon will be defeated or prejudiced as a result of the defender's insolvency or position verging on insolvency

If this is true, then they are gubbed.

Full document can be accessed though the link in the following article...

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