Rangers Football Club, one of the most acclaimed in Scotland, has had to file for administration.
The Football Association (known more commonly as simply the FA) states that any club entering administration, for whatever reason, automatically loses 10 league points, dashing many hopes that Ranges will win the league title this year. At 14:50 (2:50pm for those not acquainted with military time) GMT today the London firm Duff and Phelps were approved by the executives as the best for the job of running the club.
Administration, put simply, is when a sports team (most commonly football, which has the most professional, competitive teams) can no longer afford to pay off its debts, and asks another business to “look after” the club instead. Usually this isn’t for minor debts, with the first owners to fall into administration owing £180 million! However, players and employees are safe throughout this, as all their outstanding wages are paid first. Other clubs’ repayments are next, for instances such as player transfer.
HM Revenue & Customs, abbreviated to HMRC, originally wanted to decide the administrators, but their legal bid failed. They claimed that Craig Whyte, owner of Rangers FC, owed £9 million in both ‘pay as you earn’ and ‘value added tax’ (PAYE and VAT respectively). Mr Whyte himself did admit that the club had asked to appoint a new commander, yet did proclaim that Rangers would “come out stronger and always be here“.
Paul Clark and David Whitehouse representing Duff and Phelps were chosen as the new joint administrators, set to take over the main functions of the club whilst it sorts out the massive debts it has accumulated. The former said some words to enthusiastic reporters at the time “We are working together with management and its major creditors, including HMRC, to achieve a solution to the financial problems which will ensure the ongoing survival of the business, which is of paramount importance to all concerned.“
He also thanked fans for their great support in the hard times and that all stakeholders (people with an interest in the club’s actions) were working together to help sort this matter.
But what do you think? Are you a devout Rangers fan like my father and worried about the situation befalling your club? Or are you not particularly bothered with how they’re doing? Or do you support Celtic, their rivals, and are cheering for their 10-point loss? Leave your thoughts below!
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