Ally McCoist has performed a remarkable financial u-turn and is hopeful that Rangers can avoid liquidation.
Giving an update on the ongoing financial crisis at the club the Ibrox boss claimed that a newco could be formed without the club being liquidated.
On Sunday in an interview with Radio Scotland McCoist was asked about the prospect of the club going into liquidation and warned that: “I would have to say that that looks more of a possibility now than it ever has.”
With no signs of any fresh proposals on the table and the SPL still to vote on new financial fair play regulations McCoist struck a more upbeat tome today previewing tomorrow night’s visit from Dundee United.
He said: “I would be very hopeful that we would have positive news in terms of a preferred bidder this week.
“We can’t really afford to go any longer at all. I would be really, really hopeful from what I’m hearing, what I’ve been told, that there would be a preferred bidder named this week.
“I spoke to the administrators last night and they were still involved in ongoing discussions with two potential purchasers.
“I think there is no liquidation at all with any of the two parties involved. That’s my reading into the situation, I just hope I’m correct in saying that.
“Not being totally business-minded, I think the two offers – certainly one and very probably the other – do consist of newcos but I have been told that does not involve liquidation.”
A newco that wouldn’t involve liquidation of the current club would further test the resolve of the SPL who are due to meet on Monday to vote on transferring the share of a liquidated club to a newco.
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How can a team change to a newco and still avoid liquidation…have i missed something here?…my understanding is that for a newco to exist the “oldco” would have to be liquidated?…can someone explain?
Not necessarily Sean. It would be strange but the spl share is technically what entitles the holder to field a team in the league. This could be transferred to a new company who would then have this right but leaving the old rangers legal entity alive. The shell of what’s left can then try to meet its creditors. If it fails then it would have to liquidate. The problem with just doing this to make sure rangers can field a team next year is that the administrators have a legal obligation to get the best deal for creditors they can and the spl share is a bargaining tool. They can’t let it go until creditors get the best deal possible guaranteed and acceptable.
it is technicailly possible, but i thought it would be illegal. if not, then it would take A LOT of luck anyway to get the newco into the spl and replace the oldco temporarily. if it works, all it would mean is that any titles or cups that they win would not be registered onto the oldco after they transfer the spl shares back and use the original company in the league. i’m not sure what this means in terms of players contracts – whether or not they can transfer them between each company with ease.
this process should be against the rules, if its not, then they will probably make it so that it is, of course they wont do that until rangers are back in shape…
Im lost do they still have to pay up what they owe r just start from scratch??
Its quite straight forward really:
1. Rangers are allowed to sign players without paying for them.
2. Rangers are allowed to register players with 2 contracts going against SPL rules and is also illegal tax evasion.
3. Rangers are allowed to pay high wages to their players without paying bills.
4. The above 3 serious infringements of sporting integrity allow Rangers to compete favourably against their rivals both at home and abroad.
5. Once the amount of debt becomes too great, Rangers can wipe their debts off by paying pennies in the pound and can continue to compete at the highest level without having to pay back the people they owe money to.
6. Existing rules will be bent to allow Rangers to cheat their way through this with only minor punishment.
7. New rules will be made to ensure that in the future no other club can cheat the same way Rangers will be allowed to cheat.
I think that sums up the situation quite succinctly, would you agree?
Hasn’t Brian Kennedy rubbished this by saying the bid he’s involved in isn’t based on this?
Where’s Hans Christian Anderson when you need him?
The reason there is no Liquidation with a newco is because the SPL shares etc is transfered to a newco. the CLUB goes to the newco. Every club / buisness has a parent company which can hold it.
Rangers fc 1873 will NOT be liquadted.
the parent company might however
This is exactly the kind of misinformation that FF and the likes are trying to peddle. liquidation WILL mean that Rangers (the club) are liquidated. If what you are saying is correct then we could also say that Rangers 1873 have never won a single trophy as these were won by the company (being the entity which the players are paid to play for)
I stand to be corrected, but a newco without liquidation scenario would involve setting up a new company who ‘purchase’ all RFC(IA)’s debt leaving the Oldco debt free and then the Newco is liquidated. Of course they’re still screwed when the big tax bill hits.
Given that any NEWCO / DODO FC would not be able to supply 3 years worth of accounts the wouldn’t be eligible for Europe.
Rangers FC (In Administration) fans can spout all the spiel they wish….but their club will be dead. A new club is exactly that a NEW club, no history, no fans, no nothing.
I don’t hold out any hope for Bill Miller’s plan….while the Blue Kites are simply a waste of time. Time to face up and surrender – no-one will invest when they club faces such HUGE cases as the Big Tax Case & the even bigger dual contracts debacle.
Let Duff & Dumber continue to lose money, players revert back to full pay or walk away…no income so tell me then the club will survive…no hope