Walter Smith told the Craig Whyte trial in Glasgow that he wanted to spend his way out of debt.
Thanks to use of EBT payments to recruit players, five of which the club has admitted were unlawful, Smith had managed to secure a place in the group phase of the Champions League for three seasons running.
Debt to Lloyd’s Bank had been reduced to £18m but separate to that the club was still disputing the ‘wee’ tax case which had resulted in a bill to HMRC for £18m plus interest and penalties. Plus debts to other clubs including Rapid Vienna for Nikica Jelavic.
Claiming the SPL title and getting a £15m cheque from UEFA for playing in the Champions League was all that mattered to Smith as he watched nervously how Neil Lennon had assembled a squad funded by the sale of star man Aiden McGeady.
By spring time in March 2011 things were getting critical at Ibrox but the prospect of reigning in the spending to keep the club afloat wasn’t one that Smith was prepared to tolerate.
In court yesterday the Daily Record reported Donald Findlay QC asking Smith: “When you already owe £18million, to fund another £18million (Smith’s warchest demand) on any view it would seem you are driving the club deeper and deeper into debt.
“I appreciate you were not managing the club the next season but whoever was was clearly taking on a club where the finances were in a pretty perilous state.
“For someone like yourself, it must have been very distressing to see the club in a state like that?”
Smith replied: “Yes it was but we had been trying our best to handle the situation while I was there.”
Ally McCoist was appointed as Smith’s replacement before Whyte handed over his £1 to Dave Murray.