A Whole Load Of Nothing……

As predicted – todays news conference with administrators was a bit of a non-event.

No information regarding the clubs finances were revealed – nor did i expect any to be.

The media conference, shown live on Sky Sports was not lacking in deep questions from the media. Indeed i would say that every question that anyone has ever wanted to know regarding Rangers was asked and absolutely none of them answered.

The administrators were very quick to downplay any liability from the FTT and indeed i believe that this was a deliberate move.

Administrators have admitted one thing, and one thing only – that they have no idea where or why the £9million in PAYE was with-held.  What i would say is that there is precedent within the courts to allow this process of with holding tax if it means people keep their jobs. There is also precedent in the other direction so nothing is conclusive.

Regardless, Duff & Phelps appear to be certain that Rangers wage commitments will be honoured in the short-term. No redundancies have been made thus far.

Personally i think this is all very convenient. With a now sell-out crowd expected at Ibrox on Saturday – could there have been fears of a potential RIOT in Glasgows Govan area? The fact that there is no home game for a further two weeks after Saturday could result in a ‘cooling off’ period where any redundancies could be made.

Let’s be honest – you cannot have your cake and eat it. Administration means cost cutting and redundancies are part of that procedure. A Major part. Surely todays announcement is only delaying the inevitable.

As for the remarks that Rangers are under no immediate threat of liquidation. This is a healthy sounding statement but as Duff & Phelps have already made clear there has been no decision from the FTT – surely a massive bill from HMRC would change that position significantly.

UNLESS – as i have probably commented all along – the wheels are already well in motion for a deal between Rangers and HMRC.

HMRC make deals on a regular basis, in fact – it is safe to say that the tax man in a modern society hardly ever get’s his money.

From people defrauding PAYE on a regular basis by doing ‘ a wee homer’ or ‘working on the side’. There are plenty guys out there claiming unemployment benefit whilst raking in money on the side.

I know people claiming such a benefit whilst earning approx. £250.00 per week delivering for the local takeaway.

I know that such money is easily made working for a takeaway due to the fact that i know someone, rather close to home, that funded his student life by doing so.( he wasn’t claiming unemployment benefit incidentally for sake of confusion)

The liability of those may seem slim in comparison to Rangers but then – when you take the many  people doing it on a daily basis, up and down the land, there is probably a huge amount of revenue lost.

Please be aware that i am certainly not trying to justify Rangers attempt to fiddle the Tax man here i am merely using it to point out that the tax man is used to no seeing his full spoils.

Let me get one thing straight about that above statement, i am certainly not CONDONING Rangers – far from. I believe punishment is due to anyone that breaks the law. What i would say is that there appears to be no solution that keeps everyone happy.

1.Ranges survive and pay a smaller value to HMRC = some tax gets paid.

2.Rangers fold and start again = hardly anything will fall into the hands of the taxman.

There is no mechanism for the taxman to get all of his money back if the bill falls to mammoth proportions. It is completely unfeasible. I think it is about time some people started to realise the reality of the situation as opposed to dreaming of a brilliant day when Glasgow Rangers are burned at the stake so to speak. I am afraid the beauty of limited business in this country prevents such from happening.

Call it unfair, call it a flaw, call it as you like – it is the harsh reality.

As we have seen from around the world, football clubs will continue to be football clubs. Change their name slightly, deduct them points, slam them in a lower division – no history is lost in a name change. Fans of Celtic Football & Athletic Club should remember that surely?

Different circumstances?

Most certainly(nor do i wish to tar Celtic with a similar brush) – but the point that i make is that no one is going to make history disappear, no matter how hard they try. Like it or not, that is the stark reality of the situation.

Todays news will be seen as a victory for some Rangers fans – personally i think there is more to be taken from what is NOT said than what WAS said at todays press conference. Light, as they say, is certainly nowhere to be seen at the end of this tunnel. indeed, the length of the tunnel itself cannot be judged until the FTT produces its results. Only then can any real plans be mae and any real outcomes sought.

It appears more and more everyday however, that something is in place between HMRC and RFC – though I have no idea what this may be.

On the other hand – HMRC could close the coffin, hammer the nail and administration and all the empty statements that come with it irrelevant.

Welcome to Glasgow, Rangers.

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15 Comments on “A Whole Load Of Nothing……”

  1. Cammy Says:

    i have been reading your blog recently with great interest, I want to ask you some questions as there is some things that are not clear to me at this point.

    The admnistrators said that the ticketus money was not in Rangers accounts, so where can it be? In one of Whyte’s companies?

    How can that have happened in the first place and is it secured against Rangers’ assets?
    Does this mean if Ticketus try to get their money back, and Whyte has nothing to show for it, then Ticketus can claim these assets?

    What do you make of Whyte’s past dealings and the relevance it has to Rangers. How does nobody know anything about his other companies’ operations, and the long list of dissolutions with a director ban thrown in between this all?


    • 1.The simple answer to that question is yes: The ‘ticketus’ money appears to have been taken out using one of Whytes companies, The Rangers Football Club PLC. (The vehicle used to buy the club) is the most probable place for such funds to have gone – but none of the money has been seen in the Rangers accounts according to the administrators.

      2. Again the simple answer to your question is this time: I don’t know. If the money was borrowed through Wytes parent company before he acquired Rangers then it would explain the fact that the cash was available when asked to be seen by Sir David Murray and Lloyds bank.The funds to take over the club.

      What is not clear is exactly what this money is secured against. Surely no company, especially in such financial times, would dish out a sum of £24.4 million with no security. Especially when it has been well documented that the club of whom the tickets were related, was facing financial ruin due to a Tax issue with HMRC.

      The administrators today said that the debt was an unsecured one, I would take from that the obvious, in that, should Rangers seek a CVA it would be with ‘ticketus’ being a normal creditor that would never receive anything in the region of the £24.4 million that they have dished out.

      The simple fact is that a floating charge is held by The Rangers Football Club PLC. I have absolutely no idea what arrangement has been made between this group and ‘ticketus’.I am very interested to find this out though.

      Sorry for not being much help.

      3.As for Craig Whyte. His past dealing, in my opinion, mean that the man should never have been allowed near Glasgow Rangers. Anyone that spends time doing enough digging can find out about the many discrepancies of Craig Whyte and his business past. I am not suggesting that either me or you would have the time, or the willpower to sift through such information- but those such as Lloyds Bank and Sir David Murray (Or their representatives at least) most certainly should have.

      If you are at all interested in Mr Whyte then i would point you in the direction of this blog:

      http://scotslawthoughts.wordpress.com/category/craig-whytes-companies/

      The guy running it, apart from being an exceptionally intelligent man, is very genuine, helpful and accurate. His own personal interest in Craig Whyte has led him to spending some spare time writing some brilliant blogs regarding Craig Whytes history and dealings within Glasgow Rangers.

      You are most certainly better off reading such information from here as it goes far and above anything that I could ever tell you about Mr Whyte.

      Many Thanks,

      Garry MacInnes


  2. Out at a boring business meeting at present, only have my phone.

    I promise to answer those questions to the best of my ability when I eventually get home

    Many thanks

  3. Michael Says:

    Sorry Garry but for the first time I couldn’t even finish reading your article and as we both know some have been helluva long.

    My first suspicion was when you knew someone who paid for their student life by working and claiming Buroo money. Not calling you a liar but….

    Next you mention that their are millions doing similar things. This paragraph has got to be the weakest you have ever written since you were 5:

    “From people defrauding PAYE on a regular basis by doing ‘ a wee homer’ or ‘working ont he side’. There are plenty guys out there claiming unemployment benefit whilst raking in £250.00 per week delivering for the local takeaway. (I know – because i ‘know someone’ who has funded their student life by such means). The liability of those may seem slim in comparison to Rangers but then – when you take the millions of people doing it into consideration there probably aint a comparison. Rangers look paltry.”

    Absolute bunkum Garry, and extremely weak. I’m afraid you’ve lost me as a reader.
    Good luck in your attempt to save your team.

    Michael

  4. Cammy Says:

    Do you believe that with Alistair Johnston reporting about possible takeover fraud, and that it was revealed that Rangers went into admin because of tax issues since the takeover, that Craig Whyte is shitting himself?

    Or is the fact that he got his administrator friend on board still the key to his ‘masterplan’?


    • HA, the term ‘masterplan’ and Craig Whyte have never, and will never- wash with me.

      I doubt very much that Craig Whyte will be ‘shitting himself’ either because in my opinion this is the very same way that Craig Whyte has lived his entire career. The only difference this time is that he is now dealing with a company that is in the public eye much more than i believe that he ever could have imagined.

      Of course, if Craig Whyte had ever really been a Rangers fan, or a football fan for that matter – he would have known beforehand that he would be under some severe scrutiny in his every move. The fact that all of this became as somewhat of a shock to him leads me to believe that he did not have the slightest clue what he was getting involved with from a scrutiny point of view.

      I think that somewhere along the line, the takeover WILL be looked into and that Craig Whyte could find himself removed from Glasgow Rangers. Indeed, I would not be entirely surprised if such a matter was raised by the mainstream press before the week is out.

      As for Duff and Phelps as administrators: I truly believe that they are a far to large and professional organisation to ever consider Mr Whyte as their ‘friend’ no matter what benefits Craig Whyte may feel they can offer. Sure, it is easier to negotiate with a friendly face across the table but this could be one mess that no such friendly face could ever solve.


  5. Strathclyde Police can confirm that we have been passed information regarding the ongoing situation at Rangers Football Club. This is currently being examined and it would be inappropriate to comment further.

    Hitting the press.

    Good news for all football fans, in particular Rangers fans.

  6. Cammy Says:

    Good. As a Rangers fan I would be sick if the whole plan was to dissolve the club. But I would be even worse if the man who did it, did with pure intentions to make money out of it and got away with it.

    I do agree that Whyte is capable of it as has been shown in his past business dealings. What I also agree on is that this saga is far too public for his liking, although he must have known he couldn’t just flash his face all over the press and disappear to the beaches. I would have no sympathy toward him in any case.

    The truth is this is painful to watch as everything drags on. especially as a fan as the fans just don’t deserve this – regardless if celtic or other fans like to suggest – this is entirely the fault of the people in charge. I can sympathize somewhat with the fans who ‘have their head in the sand’ so to speak, what are they expected to believe.

    Another note I found is if you look at the only other director, Andrew Ellis’s current companies you will notice that they also have accounts overdue. I was wondering if you knew what this could implicate?

    http://www.companiesintheuk.co.uk/ltd/blunham-properties
    http://www.companiesintheuk.co.uk/ltd/newaston

    As of 20 Jan ’12, the accounts are overdue, the same date that Philip Betts is on record to have left The Rangers FC Group Ltd.
    http://www.companiesintheuk.co.uk/ltd/newaston

    and 3 days before Betts left Rangers football Club PLC on the 23rd, with Ellis coming in on the 24th.

    I don’t have a clue what to think about it all.


    • The fans certainly don’t deserve it. Some people are guilt of saying, ‘ why wern’t fans asking questions years ago’.

      The simple answer to that is actually : fuck off, who asks questions when things are going well? Not a sole. Are Chelsea fans asking what happens once Abramovich pulls the plug on his financing of the club. After all, TV money et al Chelsea still make a loss. Don’t even start on Man City. Man Utd – as big a brand as they may be – have a debt that could fold a small country.

      The truth is, whatever mess David Murray made – it was not for the fans to know. If he implemented a scheme, a legal one, then why would fans want to know about any possible ramifications in years to come. The problem is the man himself has a complete hold over Rangers therefore there was little anyone could do anyway.

      As for Craig Whyte – oh dear, I think they will find that many a question was asked about the man.

      As for Andrew Ellis companies that you have flagged up. First of all, they are still overdue as of 16th Feb nevermind the 20th January.

      The overdue accounts – well,there is no viable reason for this. The Directors face a fine for such unless there is a very good valid reason for them not being returned. My guess would be that they are suffering financial difficulties.

      I notice that those companies are both ‘non-trading’ so their accounts only need to be dormant accounts showing assets and shares held. There is actually a difference between a Non-Trading and a dormant company in the UK. Funnily enough one of the main aspects of having one is to hold an asset or intellectual property (such as copyright).

      Sometimes you will notice that businessmen with ‘dodgy’ backgrounds appear to have more than one company that do something very similar, and have at times similar names.

      If I were to be somewhat unscrupulous I could for instance ahev four Ltd companies doing related things.

      When a large or profitable job were to come in I could put them in Company 1.

      When I was doing deals I could put them in the name of company 2.

      I could buy things on credit, employ some staff and put all of the ‘risk’ in one place.If i really wanted then i could even hedge my bets, and have Company 3 and Company 4 also.

      Each could have their own credit facility for including goods, VAT registration for example. I could keep running these companies just as a vehicle until the tax man decides to take an interest after a couple of years of unpaid VAT or corporation tax.

      I could even have a few grand of stock from ten, twenty or more other businesses and keep going – putting any sales into Company 1, bur keeping all of the risk in Companies 2, 3 and 4.

      I could stall them by not submitting accounts and not paying corporation tax until eventually one day HMRC come knocking with a bill for £40,000 in the name of Company 2/3/4.

      Caught: so I show them an empty account and close down. Debt with HMRC is closed and everyone that I had credit with would get absolutely nothing. However, Company 1 is still making a great profit.

      That is a bit of an aside, but one example of why accounts suddenly don’t turn up. Not saying that it is the case in this situation.


      • Sorry, for sake of confussion a ‘non-trading’ company does not exist in legal terms. It just means that it is not trading at present. There is a provision for a ‘dormant’ company under the Companies Act but this does not mean that a ‘non – trading’ company is automatically a dormant one.

      • Cammy Says:

        Exellent. Thank you very much for taking the time to explain that all and look forward to more from your blog.

        Heck, you never know what will happen tomorrow.


      • No problems.

        I am sure tomorrow will be full of new revelations and trials.

        All the best, cheers

  7. Cammy Says:

    http://www.companiesintheuk.co.uk/ltd/the-rangers-football-club-plc

    sorry this should be the 3rd link in the previous post.

  8. perthlurker Says:

    Hi Garry

    Mmmmmm the fans didnt know? One of your own directors flagged the problem nearly 10 years ago.

    Murray used other peoples money MiM, ENIC & King (or the south african tax payers) to the tune of more than $160 mill (apols can do pound sign in perth!)

    The fans knew but accepted the trophies and the leagues without comment, the blogs have been humming for at least 14 months, so please, the we did know if just not acceptabe

    But you di have a fun blog, you would always be welcome to support Celtic…….


    • The truth is that 9/10 people wouldn’t know finance from their crossword. The press regularly said that money from ‘King’ etc was n ‘investment’ in Rangers. Coupled with the promises of Murray et al in the future of Rangers. I think it is harsh to blame Rangers fans for not questioning the media darling that was Sir David Murray.

      As for blogs – as popular as they may be; they do not touch the sides in terms of readership that the good ol’ red tops do. Collectively maybe, but there are literally millions of blogs on the Internet albeit only 3/4 closely related to Rangers finance.

      What the fans did know is that Sir David Murray was spending far more money than Rangers were earning – they can’t hide from that one. No one complained. No one looked far enough ahead to ask the question, ” what happens when….?”

      In a similar format, I don’t hear too many Man City fans asking what on earth happens if Sheikh Mansour bin Zayed Al Nahyan decides to pull the plug on their funding.

      Football fans should not need to be informed about the mire than we currently are in regard to Rangers. I have a specific interest in the area so therefore it is something that I follow.

      There may now be a growing interest, but until the whole RTC issue was brought to the fore around 3/4 years ago very few people were remotely interested.

      Even if they were; it would be difficult to overthrow a dictatorship

      😉

      As for being a Celtic supporter, haha.
      I have been a guest at Parkhead many times – and will be again in future. As much as I think it would be inheritable impossibility to support the team themselves, I fair enough their hospitality. 🙂

      Cheers for your readership.


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