Craig Whyte has spoken out about the inevitability of Rangers going into administration.
The Motherwell born businessman bought the club for £1 in May 2011 from Sir David Murray promising a new era of success.
The reality of the £1 purchase price was confirmed at lunchtime today when it emerged that the club has applied to be placed in administration.
Day-to-day funding is the biggest issue facing the club with Whyte confirming a fortnight ago that expenditure was exceeding income by £10m a year.
Despite that Allan McGregor, Steve Davis and Steven Whittaker were awarded lucrative new contracts during the summer.
Explaining today’s development Whyte told the Rangers website: “It is extremely disappointing the Club’s finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the Club both on and off the field.
“The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago. If we do not take action now the consequences and the risks to the Club are too great.
“In addition to the HMRC issues, it has been abundantly clear to me the Club faces serious structural and financial issues which will continue unless they are addressed.
“There is no realistic or practical alternative to our approach as HMRC has made it plain to the Club that should we be successful in the forthcoming tax tribunal decision, they will ‘appeal, appeal and appeal again’ the decision.
“This would leave the Club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC. Even if the Club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.
“Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the Club.
“I can, however, reassure Rangers supporters that the Club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect.
“At this point I would ask all Rangers supporters to continue to show the tremendous support they have shown to the Club, Ally McCoist, his management team and the players.”
CLICK HERE for Lambert dismisses Rangers bid for Grant Holt
CLICK HERE for Rangers in administration
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–BREAKING NEWS–
CRAIG WHYTE TELLS THE TRUTH FOR THE FIRST TIME EVER
NEWS OVER
This is too good bhoys… Soak up these moments of joy and don’t ever let the manky mob for a minute forget about this… Get it right round them HAHAHAHAHAHAHAHA
Hail Hail!
you missed the best bit!!!
“The tribunal relates to a claim by HMRC for unpaid taxes over a period of several years dating back to 2001, which, if decided in favour of HMRC, could result in liabilities and penalties substantially more than the £50 million reported which the Club would be unable to pay.” (taken from ra peepul’s fishul site)
substantially more! if it’s at all possible they are even more in the turd than we thought possible.
Much as I am enjoying the public humiliation of Whyte and the Manky Mob….let’s not forget the arch-villain in all this …Sir Minty Moonbeams …
This buffoon was protected by the Scottish Media and the associated Establishment ..(SFA anyone ???).
It’s to his eternal shame ( or it should be) that the Club he owned has reached gutter level..well they were always at gutter level…but you know what I mean…..and he seems to have got off scot free…plus he made a Pound out of it.
If Fred can be stripped of his “Sirdom” for services to Banking…then surely that’s the least that should happen to this arrogant twat..