David Murray attacks Craig Whyte over administration

Former Rangers owner Sir David Murray is ‘hugely disappointed’ by the decision of Craig Whyte to put the club into administration.

Murray declined other offers to sell the club in order to find someone with Rangers best interests at heart and sold his 83% shareholding to Whyte for £1 in May 2011.

The future of the club that Murray once dubbed Scotland’s second most important institution after the church is now in doubt with a number of sanctions about to be imposed.

A ten point penalty has already been applied by the SPL with the club unlikely to be licensed to compete in Europe next season.

Some Rangers fans believe that Murray was the source of the clubs financial downfall but the former chairman has pinned the blame firmly on Whyte.

“Words cannot express how hugely disappointed I am with news of today’s appointment of administrators to The Rangers Football Club PLC (the Club),” Murray’s stated.

“The timing of the appointment of administrators is especially surprising given two facts. Firstly, there has been no decision, and there is no present indication as to the timing of a decision, from the first-tier tax tribunal concerning the potential claim from HMRC of £36.5million excluding interest and penalties.

“Secondly, legal opinion on the strength of the Club’s case remains favourable.”

Murray added: “Following a protracted sale process over a three-year the share purchase agreement (“SPA”) imposed a number of obligations on Wavetower.

“These included the retention of £9.5m on behalf of the Club for investment in the playing squad, expenditure on the infrastructure of the stadium and settlement of an agreed tax liability, together with the availability of working capital to fund the Club’s operations.

“The Shareholder’s Circular issued by Wavetower on 3 June 2011 confirmed these undertakings. Contrary to recent press speculation, there is no legal mechanism in the SPA for MIH to reacquire the Club.

“At the time of relinquishing control over the Club, MIH endeavoured to ensure the future of the Club through the various commitments and undertakings of Wavetower.

“MIH received no consideration for the sale of its controlling shareholding, but instead agreed terms attaching to the sale of its stake in the Club to ensure an immediate and substantial improvement in the Club’s financial position, as well as a significant investment in the Club and its playing squad.

“In May 2011, the sale to Wavetower presented the best available path for the Club’s future and was reasonable given all the circumstances existing at the time. Contrary to numerous reports, there were also no viable alternative offers made in advance of the sale.

“MIH is saddened by the appointment of administrators.  It recognises the tax-tribunal proceedings have stemmed from arrangements put in place during the time of its ownership.  However, these arrangements and details of the proceedings were fully disclosed by the Club to Wavetower and Craig Whyte in the due diligence process.”