The Professional Game Board of the SFA has given Paul Murray permission to serve as a Sevco director believing that he has ‘intentions as a Director to avoid a repetition of the mistakes of the past’.
Mr Murray was a non-executive director of Rangers (IL) from 2007 to 2011 as every club in the country- as well as over 200 creditors- lost out due to the unsustainable spending by the Ibrox side.
As a non-executive director the softly spoken Borders banker had a special duty to shareholders to ensure that the company remained solvent. Within 12 months of Mr Murray walking away the company was placed in liquidation leaving shareholders without a penny alongside public bodies ranging from Her Majesty’s Revenue and Customs, Strathclyde Police, the Ambulance service through to florists, newsagents, taxi companies and a face painter..
Murray was on the board when Dave Murray, no relation, accepted £1 from Craig Whyte to take over the troubled company. While he provided coded warnings to his friends at the BBC about Mr Whyte’s intentions he never contacted the SFA with his concerns about the background of the former billionaire. Perhaps Mr Murray was more interested in Rangers (IL) winning another title than paying social taxes.
Part of the delay in the sale between Dave Murray and Mr Whyte was over the outstanding ‘wee tax case’ relating to the contracts of Craig Moore, Tore Andre Flo and Ronald de Boer.
Any competent non-executive director would have insisted that the £6m bill was settled before £5m was spent on Nikica Jelavic and James Beattie- Mr Murray did nothing.
As a former Deutsche Bank high-flyer Mr Murray would have been well aware of the consequences of failing to settle that tax bill but it seemed that securing success on the football pitch- whatever the cost- was his only goal as he sat in the blue room.
Today’s announcement from the SFA states: “The Scottish FA can confirm that at a meeting of the Professional Game Board (PGB) on Thursday, 30th April, consideration was given to the Fit and Proper status of Mr Paul Murray as a director of Rangers Football Club in respect of Article 10.2 of the Articles of Association,” read an SFA statement today.
“This followed a submission from the club of an Amendment Form to its Official Return. Specifically, Mr Murray was invited to provide information in relation to his involvement as “a director of a club in membership of any National Association within the 5-year period preceding such club having undergone an insolvency event”.
“The PGB examined Mr Murray’s involvement as a director of Rangers FC in the five years preceding the insolvency event experienced in 2012. Particular focus was given to Mr Murray’s role and function as Director, any financial benefit or otherwise from the insolvency event, steps taken to avoid the insolvency event, co-operation throughout the insolvency event and intentions as a Director to avoid a repetition of the mistakes of the past.
“Having considered the documentation provided, and taking into account Mr Murray’s detailed personal submission before it, the PGB is satisfied that Mr Murray is Fit and Proper in terms of Article 10.2.”
The £1 sale to Mr Whyte and the events of 2012 were all a consequence of Dave Murray’s incredible dream of becoming the second team from Glasgow to win the big cup, a dream that Paul Murray appears to have no financial argument with.
While the wee tax case of £6m was confirmed and the bigger tax case brewing Rangers (IL) went on an incredible spending spree during the 2008 summer transfer window.
After being denied any form of European football by Lithuanian giants Kaunus the Ibrox side splashed out £11m on Madjid Bougherra, Pedro Mendes, Maurice Edu and Steve Davis having earlier spent £6m on Kenny Miller, Andrius Velicka and Kyle Lafferty. As a non-executive director Mr Murray appears not to have recorded his concerns about a £17m spending spree with only domestic football to meet the bills.
With no Nominated Adviser willing to touch the company that Mr Murray is now chairman of to provide normal share dealing services the assurances given by the Borders banker to the SFA can only be imagined.
With the company losing £1m plus a month and requiring a £3m share issue and £6.5m in emergency loans to compete with Hibs for second place in the second tier of the Scottish game Mr Murray must have told the moonbeam of all moonbeams to the Professional Game Board to satisfy them that he is ‘fit and proper’.
