Administrators issued a statement late yesterday, and have laid bare the threat facing the Scottish Premier League club.
It really is a sorry state of affairs at Rangers, here is what David Whitehouse, joint administrator, had to say:
“The Club is in a perilous financial situation and that should not be under-estimated. Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business. We understand the players’ position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed.
“In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad. We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.
“However, no one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the club will not be able to fulfil its fixtures throughout the remainder of the season.
“As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. The Manager, Ally McCoist will play an integral part in these discussions.
“If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting-measures at the Club.”
“As regards the Club playing in European competitions next season, there is no realistic prospect of the Club being able to fulfil its obligations prior to the March 31 deadline set by UEFA.
“There has, perhaps inevitably, been speculation about Rangers Football Club facing liquidation. As we have stated previously, we remain very confident that Rangers will not cease to exist and the team will continue to play at Ibrox.
“We are, however, doing our best to ensure the Company trades viably during administration and this will require a rigorous cost-cutting programme. Our preferred option remains to reach a point where a Company Voluntary Arrangement is reached and the Club can emerge from administration as a viable business within its existing corporate shell.
“As stated there is a possibility that if a new buyer is identified a financial case may be made to sell the business and assets of the old company, but that is not our preferred approach at this time.”
Our analysis: For a club as huge as Rangers to fall into such a financial mess beggars belief. But it is a stark illustration of just how club owners can get away without being held to account for so long, allowing themselves to operate such a scale of mismanagement.
It is not just north of the border, in England the 2008 FA Cup Champions Portsmouth have entered administration, after both the FA and the Premier League failed to act despite countless warnings about the ownership of the club. Rangers are a huge club, iconic in Scotland, and if the club ceased to exist, it would be a huge loss to the fabric of British football.
Any football fan, even Celtic supporters, should hope that a buyer comes forward, and the club can be rescued from this mess as quickly as possible.
What do you think of Rangers predicament, could the same happen to England’s biggest clubs?
image: © Valerie Everett
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