For anyone in any doubt about the illegality of the EBT’s used by Rangers to achieve a decade of success David Murray gave the game away today.
Under oath this morning at the Craig Whyte trial
Murray on EBTs: “Gave us the opportunity to get players we otherwise couldn’t afford”#WhyteTrial
— James Doleman (@jamesdoleman) April 26, 2017
Thanks to the EBT system Murray was able to compete in the transfer market with Celtic who had a bigger stadium allowing them to bring in significantly more money from gate receipts.
To make up that deficit Murray turned to EBT’s after the friendly overdraft facility from Bank of Scotland was cut off by Halifax then Lloyds Bank.
With a player budget of £10m Celtic could buy pay six players £32,000/week with £4m going to HMRC in income tax and national insurance. The players would collect £20,000/week with the balance going to HMRC
Under Murray Rangers only needed £8m and could pay six players £10,000/week after income tax and national insurance with £520,000 per year tucked into their EBT.
In summary for every £10m that Celtic spent to put a team on the park Rangers only needed £8m to pay their players the same money as their rivals were getting.
It remains to be seen if any club challenges the flawed Nimmo Smith enquiry. After admitting liability on five EBT’s including Stefan Klos and Nacho Novo the liquidators for Rangers are appealing to the Supreme Court against the guilty ruling on the remaining EBT’s.
This afternoon Murray is expected to be questioned by Donald Findlay QC who is defending Whyte.