Sir David Murray 'hugely disappointed' by Rangers administration

• Former owner issues veiled criticism of Craig Whyte
• HMRC action was triggered by VAT and PAYE bill

Sir David Murray, the former owner of Rangers, has expressed surprise after the club's slide into administration was confirmed, with the Scottish Premier League deducting the club 10 points.

Rangers lodged documents at Edinburgh's court of session on Monday, confirming their intention to appoint an administrator. Amid dramatic scenes at the same court 24 hours later, Her Majesty's Revenue and Customs challenged the attempt by the Rangers owner, Craig Whyte, to make that appointment. The judge gave Whyte a two-hour deadline in which to confirm administration, which was duly met and approved by HMRC.

Murray said: "Words cannot express how hugely disappointed I am with news of the appointment of administrators to Rangers. The timing of the appointment of administrators is especially surprising given two facts. Firstly, there has been no decision, and there is no present indication as to the timing of a decision, from the first-tier tax tribunal concerning the potential claim from HMRC of £36.5m excluding interest and penalties. Secondly, legal opinion on the strength of the club's case remains favourable."

Murray, who sold Rangers to Whyte for £1 last May, has been subject to criticism over the club's predicament. Rangers have been embroiled in a multimillion-pound battle with HMRC relating to employee benefit trust payments to players during Murray's tenure. Whyte has consistently claimed that matter was key to Rangers' off-field troubles when questions have been raised about his stewardship.

It was, in fact, confirmed that a £9m bill due by Rangers in VAT and PAYE had triggered the revenue's actions on Tuesday. Whyte said: "Due to its cost structure, the club has been loss-making for many months. This situation has resulted in increasing liabilities and the club has been in discussion with HMRC regarding these liabilities. These liabilities, combined with the threat of the outcome of the first-tier tax tribunal, left the club no option but to formally restructure its financial affairs."

Murray's veiled criticism of Whyte is pertinent given it was understood to be a condition of the pair's sale/purchase agreement for Rangers that neither party would publicly speak out about the other. Murray confirmed he had more recently looked for assurances from Whyte about Rangers' position.

Murray added: "Following a protracted sale process over a three-year period, Murray International Holdings Limited (MIH) ultimately sold its 85% controlling shareholding in the club to Wavetower Limited (now renamed The Rangers FC Group Limited), a company wholly owned by Craig Whyte, in good faith on 6 May, 2011.

"In addition, the share purchase agreement (SPA) imposed a number of obligations on Wavetower. These included the retention of £9.5m on behalf of the club for investment in the playing squad, expenditure on the infrastructure of the stadium and settlement of an agreed tax liability, together with the availability of working capital to fund the club's operations.

"The shareholder's circular issued by Wavetower on 3 June 2011 confirmed these undertakings. Contrary to recent press speculation, there is no legal mechanism in the SPA for MIH to reacquire the club. MIH wrote to Wavetower on 25 August 2011 seeking confirmation that its various obligations were being complied with. A confirmatory assurance was eventually obtained on 3 January 2012." A recent request for further clarification had gone unanswered.

"Following recent speculation concerning the financing and security arrangements put in place by Wavetower, a request was issued seeking further clarity. At the time of this announcement, no response has been forthcoming."

Whyte held a meeting with Rangers' squad before their Tuesday training session. During those talks the owner sought to explain why administration is an appropriate course of action rather than point out direct ramifications. Yet, at that stage, Whyte is believed not to have signalled it would be as immediate as became the reality. Worried players pressed the owner on the likelihood of them receiving their full salaries when due at the end of this month.

The London-based Duff & Phelps have been confirmed as Rangers' administrators. A partner in that firm – David Grier – was photographed in Whyte's company at Rangers' first home game post-takeover nine months ago.

The SPL immediately confirmed Rangers had been deducted 10 points, leaving them 14 points adrift of Celtic and effectively forcing them to concede the championship. The SPL said: "As Rangers is subject to an insolvency event, a 10-point deduction has been applied to its total points in the league championship for the current season. In addition, Rangers is subject to restrictions on the registration of players with the SPL whilst in administration. We are seeking an early meeting with the administrators."

http://www.guardian.co.uk/football/2012/feb/14/sir-david-murray-disappointed-rangers

I don't know why he's so surprised he jumped shipped before it happened. He handed it over to someone clearly not fit to run the club which Murray said he would never do.

In fairness, Whyte was the only game in town at that point. King and Murray came in too late, Lloyds forced him into the sale.

I would love to meet the man who carried out the due diligence on Whyte. Whomever decided he was a fit and proper person to run the club was quite clearly incompetent.

Murray would have known all about Whyte before he sold him the club. There is no way a business man of Murrays standing wouldn't have found out a bit about Whyte before he sold him the club. Murray said a lot of things that are coming back to haunt him.

Here's a serious question. Does anybody actually know Craig Whyte's actual wealth? Surely he must have had to disclose it at some point during the takeover. Surely everyone involved didn't just read the Record and the Sun and believe he had "wealth off the radar"?

There is a lot of rumour going around that he has wealth but it's all tied up in property and shares but not a the sort of level required to run a club like Rangers.

By the sound of it he couldn't afford to buy Dermott Desmond lunch!

That's the thing. Desmond is a bona fide billionaire, he was well known in big business circles before he invested in Celtic.

Nothing was known of Craig Whyte. As a supposed 'billionaire', he came out of nowhere. It begs the question, why did the Scottish papers not do a bit of investigative journalism on him when he was first linked with the job? It was the big news at the time, but everyone seemed to believe the nonsense that was spouted from his PR companies without even challenging it's credibility.

It still amazes me that the press revel in glory when they release an exclusive on him, yet missed all the big stories surrounding him.

Murray knew fine well what he was doing handing the club over to Whyte! He's not that stupid. The club was unsellable. Think about it - £18m debt to Llyods, possible £45m tax bill (and promises from HMRC they will not leave RFC alone on it), few other tax bills and god knows what other debts. Who in their right mind would come in to inherit all that? Who would just throw best part of £100m down the toilet to be part of the SPL?? This 'reboot' of Rangers is pretty much the only option. Whyte does the dirty work - few white lies, administration, shaft the tax man, then re-package the club debt free (much more attractive sell than when Murray had it) and sell on for a profit.

He's just doing Murray's dirty work. If Murray helped plan this or not it doesnt matter - he knew fine well.

Complaining about Whyte's actions now is no use. The writing was on the wall years ago.

Yeah i believe Murray knew the score, everyone seems to be telling porkies at the minute and pointing the finger elsewhere.

Lairdy wrote:Murray knew fine well what he was doing handing the club over to Whyte! He's not that stupid. The club was unsellable. Think about it - £18m debt to Llyods, possible £45m tax bill (and promises from HMRC they will not leave RFC alone on it), few other tax bills and god knows what other debts. Who in their right mind would come in to inherit all that? Who would just throw best part of £100m down the toilet to be part of the SPL?? This 'reboot' of Rangers is pretty much the only option. Whyte does the dirty work - few white lies, administration, shaft the tax man, then re-package the club debt free (much more attractive sell than when Murray had it) and sell on for a profit.

He's just doing Murray's dirty work. If Murray helped plan this or not it doesnt matter - he knew fine well.

Complaining about Whyte's actions now is no use. The writing was on the wall years ago.

I think you've pretty much nailed the train of thought gone into it, the Tax Man will get their pound of flesh one way or another though, if Rangers are liquidated which is a very realistic possibility, what happens to Ibrox

the-gaffer wrote:

Lairdy wrote:Murray knew fine well what he was doing handing the club over to Whyte! He's not that stupid. The club was unsellable. Think about it - £18m debt to Llyods, possible £45m tax bill (and promises from HMRC they will not leave RFC alone on it), few other tax bills and god knows what other debts. Who in their right mind would come in to inherit all that? Who would just throw best part of £100m down the toilet to be part of the SPL?? This 'reboot' of Rangers is pretty much the only option. Whyte does the dirty work - few white lies, administration, shaft the tax man, then re-package the club debt free (much more attractive sell than when Murray had it) and sell on for a profit.

He's just doing Murray's dirty work. If Murray helped plan this or not it doesnt matter - he knew fine well.

Complaining about Whyte's actions now is no use. The writing was on the wall years ago.

I think you've pretty much nailed the train of thought gone into it, the Tax Man will get their pound of flesh one way or another though, if Rangers are liquidated which is a very realistic possibility, what happens to Ibrox

It's a bit of a useless building if Rangers go bust the main stand is a listed building and there is no point building luxury flats in that area.

Whytes plan will be as a the main approved creditor to move all the assets into a new holding company. Leaving the old rangers with no assets and no way to pay the tax man. Thats why there was such a rush to beat the tax man in appointing his on administrators. Whyte has previous and experience in this.

Here's a question.

Could Rangers start again under a slightly new name and join the Conference North?

Its been a possibility thats been banded about. In the first instance it might be where the players that get laid off end up!

Are many up to that standard Lairdy?

Ha! I was tempted to say its about the correct level for some of them!

What about the Tax man? While Whyte would become the main creditor, surely they'll get their pound of flesh somewhere along the line

Depends how much flesh in the pound they agree to take.

I'm not sure the HMRC are in this for the money anymore, I think they plan to make an example of Rangers and who could blame them.

Apart from the 10 points what else really hurts Rangers now and in the future? 5 years from now what is the likely situation for them?

You would think a more sever punishment than 10 points would be applied for administration. Relegation would perhaps act as a better deterent.

Their pound of flesh might be to just delay the whole process now so RFC do not get their books sorted for the European deadline. Might be all they can get, who knows.

I find the amount of Celtic fans overjoyed by this business a bit odd. For them, winning now will be a bit like Kim winning the North Korean elections.

If it turns out that the majority of Rangers debt is to HMRC then their pound of flesh if they so wished could be to take them to liquidation.

There's no doubt the HMRC have been waiting a long time to put football in its place I'm not so sure now they have the chance they will let Rangers go without giving them a right old kickin in the process.

I have no hatred for Rangers but for the potential of change their liquidation could bring to Scotland then I wouldn't be sorry to see it happen.

From what I understand though, Craig Whyte is the main creditor, he's as safe as you can get in all of this, what gazumped me was that he's able to shift all the assets of the club into a 'newco' Rangers which means any new form of Rangers would still have Ibrox and Murray Park, I was under the impression that if Rangers were liquidated then HMRC would turn their attentions to it's main assets, obviously I'm wrong on that though

Your right in the fact Whyte is the main creditor and will be safely paid long before HMRC get to touch the assets. While it looks like Whyte as creditor will most likely just pick up Ibrox and Murray Park if liquidation comes into play its not a certainty. Another party could choose at the liquidation stage to try and buy Ibrox and Murray Park with any funds garnered being used to compensate Whyte as preferred creditor.

HMRC in either a administration or liquidation process once again seem to be getting the short straw, which makes me think they may just chose liquidation to set down a marker to the rest of British football.

What interests me most about liquidation and the forming of a new Rangers is by SFA rules they would need to start from the third division. This scenario brings the SKY deal into question as it would appear to be in breach, would SKY want to renegotiate terms for a league with only one Ugly Sister?.

Something major needed to happen to Scottish football as in its current state its just on a prolonged road to death, if Rangers going to the wall is the spark for change then I'm sorry to all those Rangers fans but I'm all for it.

Anyway by this time next week we should have a clearer picture on what the administrators plan to do and possibly the state of the larger HMRC case.

The administrators running Rangers have said they do not know the whereabouts of £24m which was lent to the club. The money was lent to the club by Ticketus, a firm which hoped to profit from future season ticket sales.

Administrator Mr Whitehouse said he believed the funds went through a parent company account rather than the account of the company now in administration. He said the Ticketus debt was not secured against the assets of the football club.

It means the ticket firm is unlikely to be repaid in full should Rangers exit the administration process.

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-17067141

Can Whyte legally do that with the ticketus money i.e. pocket it? Possibly covering the £18m he's out of pocket for paying off Llyods?