Troublesome Tax Issues Compound Financial Fears For Rangers Fans

[Frankie 8,119]

As the incessant rain and rioting continue to ruin the summer for most British people, Rangers supporters have more dark clouds on the horizon with the news that HMRC (in conjunction with Sheriff Officers) appear extremely eager to ensure payment for an outstanding Ã?£2.8million (plus penalties) tax liability. With a previous ââ?¬Ë?queryââ?¬â?¢ regarding player EBT payments under the previous owner Sir David Murrayââ?¬â?¢s custodianship, and a distinct inability to push through essential new signings, the Rangers support are rightly concerned about the fiscal situation at their club.

 

Now, clearly both of these tax issues have arisen from deficiencies well before Craig Whyte bought the club just over three months ago. As such, to blame him for challenging the content of the two separate HMRC cases would be rather churlish. Moreover, it seems obvious that the Rangers chairman (along with tax expert Andrew Thornhill QC who is representing the club) is more than confident that both cases can be solved to the satisfaction of our support. In saying that, given sums of up to �£50million have been speculated in the media as possible fees if these cases go against us, we may need more than bullish optimism as these queries play out in the courts.

 

Indeed, if one juxtaposes the tax problems with our difficulties in the transfer market then that�s where many Rangers fans will start to sweat. Obviously, our support have requested prudence in the face of dangerous over-spending in the early part of this millennium but there is a fine line between conservative cash outlay and endangering our chances of success this season (and beyond). This subtle difference was illustrated perfectly as we were knocked out the Champions League well before the group stage due, in part at least, to a distinct lack of depth in our squad.

 

Of course, the club administration will point to the re-signing of key players and the capture of a few new faces as evidence that the days of alleged bank interference are gone. Wallace, Goian and Ortiz may not be the big-name players our fans crave but they will bring freshness and renewed ambition to a squad that has already proven it can compete domestically at least. Unfortunately, the sale of Madjid Bougherra along with high profile failures to capture our primary transfer targets means that once again the Rangers squad is a fragile one as the SPL really starts to get going. An apparent knee problem and MRI scan for Nikica Jelavic along with ill-health for Sasa Papac merely emphasises the lack of options for new manager Ally McCoist.

 

With one negative story after another seemingly encapsulating the club in the kind of gloom that can derail championship bids, perhaps this will be the perfect time for the new owner to prove his intentions are honourable? From now until the end of August is a time where the transfer market finally becomes more focussed ââ?¬â?? none more so than in the EPL where the club 25 man squads will be drawn up by the Manciniââ?¬â?¢s, Dalglishââ?¬â?¢s and Fergusonââ?¬â?¢s of this world. Last season Rangers had some joy from this market but even they may not be able to wait until the cast-offs of our richer peers are available. After all, can we really afford to drop more early points after a poor home draw against Hearts as we unfurled the SPL flag last month?

 

Even from just a few games this season, it is clear that Rangers are short both in central defence and in a creative sense. The loss of Bougherra and injuries to other defenders means strong interest in Carlos Cuellar and Roland Juh�¡sz has to be converted into actual signings. Meanwhile, further forward in the team, Steven Davis canâ��t be expected to carry the creative burden on his own so a wide outlet with pace and the ability to score goals would be most welcome. Anything less than two further new signings and Rangers will really struggle to compete throughout another demanding season at home and abroad.

 

While it is easy to be critical and perhaps over-analyse the very early stages of the Whyte era at Rangers, football fans are generally not the most patient (or indeed logical) of people. Our support needs and demands success at every turn and even though Rangers fans may have to learn to be more understanding of a changing economic climate in Scottish football; the welcome carpet for their new owner has already been rolled away. Exciting sound-bites now have to be turned into tangible progress.

 

To that end, Craig Whyte may not be able to stop the looting in England but the Rangers support will expect him to chase the rain-clouds away from our club and provide the bright future he promised in May.

[Stimpy 0]

Although I expect at least 2 new signings, what quality they are remains to be seen. I also feel that the failure to reach the CL will impact on the quality unless we unearth a couple of gems.

 

I'd assume that the club has already planned for the tax bill since it was Whyte's team that found it.

[laudrup11 0]

Is it not the case that an agreement was reached regarding the �£2.8m tax bill ?

 

I thought I'd seen on Sky sports something along those lines or were they off mark again ?

 

I have faith Mr Whyte will come good for our club I just think until the uncertainty of the big tax case remains he will air on the side caution with regards to spending money.

[Frankie 8,119]

I'm not overly concerned about new players or the tax issues. Like you say, I'd hope Whyte knows what he's doing there.

 

However, so far at least, the signs haven't been all that indicative of a better run club although I do welcome a stronger tact with the media.

[Frankie 8,119]

Is it not the case that an agreement was reached regarding the �£2.8m tax bill ?

 

I thought I'd seen on Sky sports something along those lines or were they off mark again ?

 

I have faith Mr Whyte will come good for our club I just think until the uncertainty of the big tax case remains he will air on the side caution with regards to spending money.

 

Yes, club have suggested agreement is reached but that's only with the smaller liability - not the main EBT scheme which is being contested in the courts.

[laudrup11 0]

Yes, club have suggested agreement is reached but that's only with the smaller liability - not the main EBT scheme which is being contested in the courts.

 

Cheers I knew it was reported as smaller one as Club still feel we have good chance of winning big case

[Stimpy 0]

I'm not overly concerned about new players or the tax issues. Like you say, I'd hope Whyte knows what he's doing there.

 

However, so far at least, the signs haven't been all that indicative of a better run club although I do welcome a stronger tact with the media.

 

Is this perception or do you know something:devil:

 

Just posted it on GF, hope you don't mind.

[Frankie 8,119]

Is this perception or do you know something:devil:

 

Just posted it on GF, hope you don't mind.

 

No, just a perception mate given our overall approach this summer.

 

Take anything you want - always welcome!

[Zappa 0]

Frankie, we all pretty much speak our minds here; so I want to say that while I agree with a lot of what you've written, I really don't see the value in adding to the fears of the fans by marrying the tax case & transfer dealings subjects at this point. The reason I say this is because many fans remain extremely optimistic and upbeat and the club really needs that sort of positivity at the moment. I think the time to write this sort of thing is if the transfer window closes and we basically haven't spent any or have spent very little money when you take into account the Bougherra and Charlie Adam cash, but the transfer window doesn't close until twenty days from now. Twenty days is a relatively long time when you consider that a lot of deals are often done within the last weak of the window.

 

Yes, we're all concerned about the tax cases, but many fans are still very upbeat and positive about this transfer window.

Edited August 11, 2011 by Zappa

[rbr 1,247]

I tend to agree with Zappa on this , and also dont see why the tax case can be used as any type of excuse , Whyte bought this club after extensive due dilligence and with plenty of press coverage on our difficulties , the deal was even restructured after this smaller tax issue came to light with Murray even reducing the price of his share s down from �£6million to �£1 to see this deal go through as long as Whyte paid the smaller tax bill.

 

If as now appears the tax has still not been paid , who's fault is it .

 

I am not for a moment casting Whyte as any sort of wideboy , and am extremly grateful and even thankful he took over , as the thought of where we would be with Lloyds/Muir still in charge fills me with dread , Davis , MacGregor , Whittaker sold etc ,however he and his team have to get a grip on this club and start to act in a more professional manner , especially regarding transfers and the media .

 

There have been very welcome signs that this may be happening and in fact we may be in for a very long journey till we get to where we all want the club to be ,but to use the current situation as an excuse when it has been known for years and months is IMHO poor .