Whyte of the long knives


The news that Alastair Johnston and Paul Murray have been removed from the Rangers’ board, swiftly followed by reports that Martin Bain and Donald McIntyre have been suspended pending an inquiry into financial irregularities, is somehow still stunning despite its predictability.  What makes these events remarkable is the lack of decorum.  Whyte was always going to form his own board.  In fact, I have been surprised that he has waited this long.  (Some have suggested some legal i-dotting and t-crossing was required before Whyte could act).  However, following most takeovers, the changing of the guard usually proceeds without much of a fuss or fanfare.  The rules for how to remove board members varies from company to company, but the mechanics for a new owner to place his own directors on the board should be straightforward.  When you own 85% of the company, you can have the directors of your choice.  (Dave King’s board seat may be guaranteed by previous contracts related to his original investment).  It is the style of this “night of the long knives” that marks a stunning departure for Rangers (or at least a leap back to pre-David Murray times).

This blog has nodded and winked at the extent of wrong-doing by prominent members of the Rangers board.  I know for a fact that the actions of some board members would shock even those who has been following the financial fate of Rangers FC closely.  At some point this was always going to explode.   However, there are more questions than answers about Whyte’s motivations in acting now and in this manner.

Has Whyte had a sudden epiphany after getting access to the ‘real’ behind the scenes information? Contrary to popular myth ‘due diligence’ does not guarantee that a potential buyer gets access to all of the information he requests.  The seller always has the right to simply withhold any data of his choice.  The only obligation of the seller is to not tell outright lies about the prospects for the firm.

Alternatively, is this just a stage-managed event to portray the previous board as the villains who will be responsible for any failure to deliver on promises leaked to the media during the long takeover process?

Are Martin Bain and Donald McIntyre under investigation for EBT-related activities or is this a separate issue altogether?  I can say that the EBT-related activities of board members was not some rogue action secretly executed by one or two individuals.  To a fault, board members over-communicated what they were doing.  If today’s news is EBT-related, then I would be ready to declare these dramatic moves as a smokescreen to distract from other actions.  Every Rangers FC board member since 2001 will have been aware of the EBT.  I know of five who definitely had detailed involvement in its operation.  Two of these directors remain on the board.

We cannot ignore the fact that as executive directors, Bain and McIntyre will be on significant salaries and will likely have some job security through multi-year contracts.  Such contracts can only be terminated for ’cause’.  Such cause has to be very serious for terminations to be upheld, but if a case can be made that shows the executive to be untrustworthy, the terminations will stick.  This could all just simply be a pretext to fire two highly paid people without having to pay them for the remainder of their contracts.

The refusal of Alastair Johnston and Paul Murray to resign is a further sign of their deep misgivings about the new Rangers ownership.  That Johnston broke with the standard cover story about ‘confidence’ over the tax case to express concerns that Whyte had shown no proof of having the funds to pay such a bill would have made his removal inevitable.  That Paul Murray broke ranks to try to organise an alternative financing program to thwart Whyte’s advances will also have marked his cards.  However, this is just standard corporate politics and normally defeated directors in a hostile takeover fall on their swords. This is inevitable when 85% of the shares are held by one shareholder.  That both Johnston and Murray have tried to make as big of a splash on their departures as possible can be interpreted as a warning.  I am bound by a promise of confidentiality to a source of information, but I know that Johnston and Murray would have solid reasons (not tax case related) to want to send a warning to the Rangers support at-large.

It will be interesting to see how willing and/or able these four directors will be to speak to the media (old and new).  Even if gag-agreements are in place leaks happen in the normal course of events.  The challenge will be for the Scottish media to publish their comments.  Most Scottish media outlets will want to continue dining on the easy meals of succulent lamb fed from Ibrox.  Journalists whose salaries depend on getting their quota of transfer exclusives and interviews with players will fear retribution for printing anything not approved by the new politburo.  However, I suspect that Hay McKerron will be busier than they ever imagined in the coming weeks.

 

About rangerstaxcase
I have information on Rangers' tax case, and I will use this blog to provide the details of what Rangers FC have done, why it was illegal, and what the implications are for one of the largest football clubs in Britain.

240 Responses to Whyte of the long knives

  1. Number 7 says:

    The default position of rangers fans in my work is that RFC is debt free and has been paid off by Whyte using his own money. They are now in a better position as they were- with the bank’s constraints now gone.

    They do not care about Whyte’s background and have bought into the multi milionaire line.

    The bottom line for them comes down to two words “debt free”.

  2. peter lamb says:

    got to stick up for adam here!! from what i have read he has been very fair in his comments and has even given some scathing criticism of whyte ! the difference is he is obviously coming from a rangers stance where as most of us, as impartial as we try to be, are coming from an anti rangers stance!!

  3. Adam says:

    Ciarans Dad. There are a number of things smelly about the sale. Not going to get any arguments from me there.

    Number 7, more fool them, though obviously i hope they turn out to be right…. :-)

  4. Adam says:

    However on the same day as your statement above, released through plus-market, Murray Group followed it up by saying :

    “Wavetower will also acquire the indebtedness of Lloyds Banking Group, the secured creditor, and is under an obligation to waive this debt in the foreseeable future, thereby strengthening the Club’s balance sheet.”

  5. Mark says:

    Adam, why so defensive I am only saying you are putting a blue freindly spin on events, and that is, whether you like it or not defending your team, and there is nothing wrong with that. Despite overwhelming circumstantia evidence you are rightly trying to pick holes in it, that by its very nature is was a prosecution/defence lawyer does in court every day. Don’t take offense, jaysus

  6. Ciarans Dad says:

    Adam
    Who do you think this obligation is to. If i buy a business off you, then you have no right to request that i dont have any debt in this company. Maybe as a seller and lifelong ranjurs fan (no sniggering at the back) its what you would like but its totally redundant in a business sense. I smell shyte of the Hay McKerron variety here.
    But i suppose it placates the follow followers :-)

  7. Gwared says:

    Adam, I think you are doing a great job infact you remind me slightly of RTC with a hint of Blue. Like the majority of posters I suspect you just want to know the truth about your Club. I like you, have a cuddle ;-)

  8. The Black Knight says:

    good point Paul Mac!

    Another point that has been bothering me is that The Whyte Knight has, as you say, purchased the shares in the club for less than a loaf.

    This “£1″ has enabled Whyte to have the controlling share of the club, and we have to presume, the assets!

    Could the use of the ordinary share value (bought for a £1 but worth considerably more) and the “assets” be used to create a ‘paper wealth’ which can either offset the debt or interest investors to have their share of the assets? Are they using these funds (paper wealth) to secure interest or loans?

    It is no secret that Merchant Capital set up ‘The Turnaround Fund – (code name) Gemini’ the weeks before taking over Rangers.

    http://www.merchant-capital.com/recent-press/launch-of-new-fund

    The timing of such a venture seems to play right into any theory! (all the same ‘players’ too) Just a thought!

  9. Adam says:

    Admittedly its a weird one Ciaran and i genuinely cant answer the question other than to say the announcement was made on the plus market and therefore must hold some water.

    Bearing in mind, this was a Murray Group announcement so they had nothing to gain from it.

    Its not normal though and like you, not sure how enforceable it is.

  10. Good afternoon Jason.

    Just to take issue with a couple of points. There is a lot of speculation on this site regarding Whyte and his intentions, However, you are simply wrong if you think that this site is 100% speculation.

    Tax case? Time will tell if I am speculating about how Rangers implemented the tax scam.

    There are also a lot of issues at which I have to nod and wink. I have a decent amount of solid information about what directors received what and who did what, and about Whyte’s funding sources.

    Where I am speculating, it is obvious and usually declared.
    Where I am indicating that I have knowledge it is stated.
    Of course, when I am nodding and winking, you just have to draw your own conclusions.

    Let’s look at events since this blog started.
    Alastair Johnston has confirmed that the tax bill amounts would be unpayable (at least by Rangers on its own).
    Despite having been a sceptic on the takeover originally (I still do not understand what Whyte’s angle is because it does not make sense financially), I did receive solid information 3 weeks in advance that it was going to happen. I wrote about how it would happen: £1 for the equity and that the bank debt of £18m would be taken over but not cleared. I told you that it was a certainty that the Scottish media were just repeating PR lies and that Rangers were not going to be sold for £33m or £52.5m or other fanciful numbers. Either I knew or I should start gambling.

    I have also provided a lot of hard anaysis of Rangers’ publicly available data. Informed speculation? Time will tell.

    If this blog is no better than wild internet ravings, you are free to ignore it.
    Let me ask you a question. Do you take the time to write lengthy replies to every delusional Celtic fan indulging in wild speculation? What have I done to deserve your attention? ;-)

  11. Adam says:

    Im welling up here Gwared. Can i take this opportunity to thank my mum, my agent, my………….. ;-)

  12. Paul Mac says:

    Boab..

    I was simply providing a method by which one can arrange the cash to purchase to facilitate the takeover…

    Adam was questioning how you can borrow cash against assets you don’t own.

    Acquiring the shares was the first step…for £1..the release of commited cash by city investors would be the next to pay Lloyds…with the assest being assigned to the company who purchase the debt,,

  13. Just to be clear. Bain’s responsibility for the EBT was as a director and was the same as the other directors. Directors of every company have a shared responsibility for the legality of tax affairs. Any directors who were recipients of the EBT scheme should have declared a conflict of interest.

  14. Cost cuts at newspapers today means that “branded” writers’ work will barely be reviewed before publication.

    English’s loyalty to his now departed king goes beyond playing the game. His stuff reads as if he is either carrying a romantic torch for Murray or has simply been paid. Traynor’s infatuation with Murray is the same. It appears to go beyond mere respect for the man.

  15. Midlothian_Celt says:

    The majority of Rangers fans are currently backing Whyte because he was – and is – the only game in town.

    Minty tried to flog their club for years without success – Whyte comes along on his white charger (no pun intended!) promising to save the day.

    Footy fans are eternal optimists – even otherwise sane, rational, individuals have weak spots and a bar-scarf around one’s neck often impairs intellectual rigour!

    Jambo fans – in the main – support Romanov – not because they respect him and his bizarre ways – but because they know their club would got belly-up the day after he withdrew his support.

    We backed The Bunnet – mainly because he saved us from the ignominy of foreclosure and for his ousting of the ineffectual family dynasties that had helmed us to the brink of ruin. Fortunately, McCann did what he said he would do (albeit aided by a Support prepared to dig deep) and left with a fair-few million in his back-pocket and a rejuvinated Celtic.

    Of course the jury is out on where Whyte will take Rangers but from his recent statements he is surely storing up heaps of fan opprobrium should he turn out to shaft Rangers and asset-strip the Kinning Parkers.

    Time will tell if he’s in it for the long haul – or whether he is some dupe who is being cleverly manipulated by some svengali figure working to another agenda. If this turns out to be the case he will need more than the “Beast” to convey him around the land of his birth.

    A lot of Bears would feel much let down by this man – so what sort of person would freely volunteer to get involved on that basis? Frankly, I really just can’t imagine anyone with a modicum of sense doing so. Perhaps his “fee” for playing the role would compensate him – but at what price?

    This has a long way to run – and we still have the HMRC decision to come!

    Fun, fun, fun!

    MC

  16. That is just hilarious!

    Leaving aside the idea that anyone who struggled to pass his Standard grade English exam is inside the inner sanctum of the Whyte camp (and is taking the time to “leak”), there is one fatal flaw: no one knows when the tax case decision will be released.

    FTT decisions are not produced on a schedule. They are published when complete and Rangers would not know the outcome until it is published. :-)

  17. Good points. We knew little about McCann and in some ways we simply got lucky that we got a man of his word.

    However, the degree of media scruitiny over Celtic’s troubles ensured that charlatans were uncovered and shamed. Rangers’ fans have been disadvantaged by a corrupt and cowardly media pack.

  18. A general question:

    The replies section of this blog has grown to a point where it is straining the design / layout. (Most blogs are lucky to get a single reply and the tools do not anticipate detailed debates involving many people).

    What would you all prefer?
    A messageboard format e.g. vBulletin
    A linear reply system e.g. in the format of CQN

    Anyone else got suggestions or recommendations of blogs, tools, layouts that would be an improvement?

    If we went to a registered account format, would you take the time to register and sign up?

  19. Auldheid says:

    The thing about the Glaser takeover is that the cost of watching Man Utd escalated for their support and in spite of them winning the EPL, the technical quality on show for the money has dropped but not the overall team and individual effort put in (credit to Fergie).

    Could Rangers supporters afford the kind of price hike to pay higher interest owed knowing that the extra money was not going on players?

    My feeling is that there is no risk money to be made at Rangers simply by adopting a profitable wage policy that keeps wages below income generated.

    That could mean an overal lowering of standards but in a sense Rangers (and Celtic) have been battling against that since wages rocketed in England.

    Rangers could sell McGregor, Davis, Bougherra, Jelavic and Naismith for a good return, replace them with players on higher wages than any other Scottish team bar Celtic could afford and PAY their way into solvency (tax case nothwithstanding of course).

    Of course this would never be stated up front at this point, as it might affect ticket sales BUT if you support Rangers you accept (and denial is the problem) that the tra la la salad days of debt and tax avoiding funding are over, there is a price to pay (there IS no free lunch) and after a season or two the game in Scotand reaches equilibrium as Rangers emerge from debt and have oaid their dues..

    Maybe what Rangers need right now is men who are NOT Rangers men because Rangers men only think along the same lines that got them into their present position, an unwillingness to accept Celtic as being a bigger and better club. Free of that kind of thinking CW would make prudent and profitable business decisions.

    Life in the slow lane ain’t great but it’s better than life on the hard shoulder waiting for the RAC to turn up but going no where until they do.

    The piper must be paid. – always.

  20. Ian58 says:

    I’d vote for the CQN format.
    It works reasonably well there despite the many topics that can be on the go any any one time.

    Given the nature of how things are here with usually just a few different themes on the go I think it would work well.

  21. Mark Dickson says:

    Back in the day Davy Duff and his brother in law Jimmy Gray were both dyed in the wool Hibby’s who no doubt wanted the best for their team plus the ego trip, perks and exposure of running a fitba club, they too also had little real wealth of their own and had roped in David Rowlands as their rich investor and funder …… he was working to a very different agenda concerning assets, debts, financing etc than they were.

  22. Ciarans Dad says:

    I like the CQN style as you can quote an earlier post and if you do so the current online users see it and get achance to comment. Also this alows everyone online to get involved rather than isolated in a particular thread.

    Yip would be willing to register and it may make things easier for you as you can just bin anyone that abuses and also may stop my posts going to moderation.:-p

  23. murphio says:

    Adam I was simply responding to your quote which said the following; “Wavetower may (probably) have a debt. If Rangers have to pay a penny of that back (and it is my view we will) then Whyte is a scamster and should be thoroughly ashamed of himself(dont think that will bother him”
    That statement is fairly clear. If you honestly believed that Whyte – with no verifiable wealth and a string of failed businesses – was going to pour money into Rangers for no return I have to say at the very least you were niave in the extreme. Whyte actually didn’t say he would make Rangers debt free – that was the work of fantisists in the media like Traynor and King who still continue to state that Rangers debt has been liquidated despite it being made clear in black and white that the obliation has simply been transferred from Lloyds to Wavetower.

    Whyte may be a scamster – in fact all the evidence points to him being exactly that. But he is perfectly entitled to demand repayment of the money he has promised to pay Lloyds and would have nothing whatsoever to feel ashamed about. That is money Rangers used to buy players like Lafferty, Davis and Naismith and if and when the time comes when you have to pay it back then tough luck amigo – that’s how borrowing works.

  24. Badlydrawnbhoys says:

    RTC

    A CQN style format would certainly help the flow of the thread as it can be quite difficult to catch replies to posts if they are further up the chain at the moment. The only downside to CQN I have found is the multipage posts which I know were done to cope with the number of posts but you do sometimes blink and you miss a whole section of the thread (unless you want to trawl back through each page).

    No probs signing up either…….

    Well done on a great blog so far….

    bdb

  25. Boab says:

    I do not like the CQN format. To me it is too much like online chat and I cannot work out who is replying to whom, and often what point they are trying to make.

    I much prefer the message board type model. A thread with a topic and people replying to that topic. One can use the reply function to answer a particular point. Or just add on at the end of a thread to make a general point.

    It doesn’t work particularly well on blogs, but they are not really designed for that anyway. A weblog is really more for someone’s thoughts and other people commenting on those. It is not really for a few (or more) people having several discussions, inspired by the bloggers opening thoughts.

  26. ramsay smith says:

    There was never any doubt about McCann’s Celtic credentials. His business and professional background were also fairly transparent.

  27. Charlie says:

    RTC,

    The only criticism I would have of this site is the out-of-synch posts time-wise. As a sad case who wants to read every post I find this time-consuming.

    The CQN format would be fine as long as you continue to comment on posts, which are the main life blood of the site after you blogs. It would mean you don’t have to comment on posts as soon as they appear, but just refer to poster and time and we can look back if we want to.

    In any case, just keep it going.

    After this how about a Coalition Government blog!!

  28. Badlydrawnbhoys says:

    RTC

    A CQN style format would certainly help the flow of the thread as it can be quite difficult to catch replies to posts if they are further up the chain at the moment. The only downside to CQN I have found is the multipage posts which I know were done to cope with the number of posts but you do sometimes blink and you miss a whole section of the thread (unless you want to trawl back through each page).

    No probs signing up either…….

    Well done on a great blog so far….

    bdb

  29. kenny says:

    vBulletin for this bare although I will prolly get barred like I did from thehuddleboard

  30. tomtom says:

    This blog has taught me to sign nothing until due diligence is carried out. 48 hrs after that will be the deadline for any signing to take place unless my board (wife) advises me against it. After that time I reserve the right to assign my comments to TomTom2 who will give an undertaking to present posts in the manner accustomed for the foreseeable future. Other than that I cannot comment on any internal arrangements that may arise as a result of this or any other change in circumstances.

  31. easyJambo says:

    Excellent blog as always RTC

    I’d like to defend Adam’s position at the moment. My interpretation of what he has posted is that he has concerns about Whyte and his plans, but bases his position on what information in in the public domain rather than indulge in speculation at this stage.

    On the other hand we have RTC who has used his knowledge and experience to speculate on possible outcomes, particularly on the tax case. I think this position is shared by the moajority of posters.

    Beyond that, we have a number of “Celtic-minded” posters who are already bought into the worst case scenario for Rangers and are already gloating over their demise and the prospect of 10 in a row.

    As a Jambo, I consider myself to be neutral, although I guess some “Celtic-minded” posters may doubt that.

    For the record I am aligned closer to RTC’s line of thinking, but I am hopeful that that Rangers are forced out of business, not because they are Rangers, but as an example to the rest of the football world about the excesses of financial doping ( …… and I include my own team in that list)

  32. Fuzzy Dunlop says:

    When it all goes pear shaped they’ll wish they had listened to the delusional Celtic supporters, who, rather bizarrely, seem to be showing more concern for Rangers well being than Rangers supporters themselves.

  33. Fuzzy Dunlop says:

    This is why the whole Whyte thing just doesn’t make sense. On the basis that he is not a multi-millionaire, the theory that Rangers supporters would be content to finishing a poor second to Celtic every year just won’t wash. Think back to Celtic in the early 90’s. As soon as the supporters realize they are not much better than Hearts and have no chance of winning the league the crowds will plummet. By the time Celtic got to 5 in a row there would be tumbleweed blowing through a virtually empty Ibrox. Anything other than keeping up with Celtic won’t work and the only way they can do that is by plowing millions into the squad and the stadium and yet only a die-hard near billionaire Rangers fan would waste about £100m on such a project and since everyone on here believes Whyte not to be anything like a billionaire – to put it mildly – nor to many peoples minds is he a die-hard bluenose the whole thing is difficult to fathom.

  34. Odear says:

    Linear please. The volume of posts means that if you revisit regularly on a mobile (as I do and I guess a fair amount of others do) it is murder to scroll looking for new points as people can reply anywhere on the page. Would be appreciated by my poor thumb!

    I’d take time to register, especially if registering would get me the skinny on whatever you resurrect the blog to address other issues. Seriously it is a good read and if you could widen the focus, i.e. the skinny on say Romanov, get a reputation as the football Wikileaks and uncover what the hell is going on at Leeds.

  35. Henry Clarson says:

    We may have known little about Fergus McCann but we knew that he had the support of the likes of Brian Dempsey and a host of other figures with cast-iron Celtic credentials. Furthermore, he had already convinced a majority of individual shareholders of his bona fides and his plans for the club. The fact that he had indeed been a regular traveller on supporters’ buses prior to his emigration was also widely confirmed. And he transparently cleared the club’s debt to the Bank of Scotland with real money at a single stroke.
    I don’t really think that it was a stroke of luck that his credibility hadn’t been blown while he went through the process of taking Celtic over. If he’d been a fake, he’d have been rumbled many times over.
    The Craig Whyte scenario is at the opposite end of the spectrum in every one of the aspects I’ve mentioned above. He has risen without trace, has no interests in clarifying his objectives, has no known history of being a committed Rangers supporters and there are no major Rangers figures backing him up. On the contrary, he is generally regarded with suspicion by any leading Rangers figures from whom a quote can be dragged while the rest of them assiduously avoid committing themselves to an opinion.

  36. Henry Clarson says:


    25/05/2011 at 10:27 am
    Its all in the timing i guess. Statement just released by Craig Whyte:

    I believe most Rangers supporters understand that, as a result of the takeover, the Club’s debt to the Lloyds Banking Group has been cleared and I have repeatedly stated to the Board my intentions to invest in the team”

    First thing to say, Adam, is that I’ve been reading this blog from the first and I regard your contributions as valid, worthwhile and honourable, so I have no issues there.

    So.
    As far as this quote is concerned, it strikes me as a sneaky way of giving an impression that it means one thing while it actually says something else.
    Whyte is giving the impression that not only has the debt been cleared but that he is going to invest in the team. That may turn out to be true but it’s not what he’s saying.
    What he is actually saying is that he believes that this is what most Rangers supporters currently understand.
    That’s not the same thing.
    It may well be true that he believes this is what Rangers fans understand.
    It’s not necessarily true that their understanding reflects reality.

    Everything that this man actually utters strikes me as being carefully calculated to be as unclear as possible so that he will have plenty of wriggle room if his quotes are subsequently thrown back at him.
    It would have been far easier to say, “I have cleared the debt and I will invest millions in the team,” but only if that is the truth of the matter. If it’s not the truth, then it’s perfectly clear why he would qualify the statement with, “I believe that this is the understanding of people who are trying to draw an optimistic conclusion from the vague impressions that I have carefully planted in their minds.” Or words to that effect.

    It’s really not a far cry from President Clinton’s desperate statement that, “It depends on what the meaning of ‘is’ is.” That was never the question, Bill, and the only reason for avoiding the correct, simple answer is because the truth would be so damaging.
    Similarly, Whyte’s words are worth scrutinising. This is a man who appears to have made whatever wealth he has acquired by constructing corporate webs of Byantine complexity, relentlessly grinding away at infinitesimal details and delving into obscure loopholes which very few people would dream of pursuing. He knows exactly how valuable words can be and he knows that using this one instead of that one can make a difference worth millions of pounds.

  37. Jason says:

    RTC – not everything on your website is speculation, I will concede that you do seem to have information relating to this case that seems tangible.

    When an football club is taken over by new owners, there is always a level of finance involved in the transaction.

    It does not mean that Rangers are still in debt to Wavetower. The deal was done based on the debt being cleared and it has been by all accounts. Wavetower are a company with 1 billion worth of assets, the 18m is easily absorbed into a business of that scale.

    Craig whyte deserves some time to illustrate what he wants for the club. I have no reason to doubt the man currently.
    I think the message from the fans is simple, buy new players and we will support you. I wouldn’t bet against some notable signings as a show of defiance from the new owners.

    The land around ibrox is where I see Andrew Ellis’ interest in the takeover. If whyte and Ellis make money from developing new commercial properties etc so be it. The proposals for ‘ibrox village’ were mentioned not so long ago, I would not be surprised if we see something similar soon. There are many ways for whyte and co to grow rangers as a business and he has touched briefly upon this information. Rangers turnover is well over 50m per year so to pick them up for 28m effectively is a steal!

    I would ask you to name your sources and I may take more notice. Until that point you are speculatng (hoping) Rangers go bust – may not happen. Rangers have the best tax QC in Scotland that has won similar case’ and he is confident rangers will an the case, I dont Whyte would have purchased rangers if there was even the slightest chance of being hit with a 50m bill.

    Nae doe 3 in a row :-)

    Beunos Dias

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  39. Ray Charles says:

    I posted this last month when the Bain suspension was announced.

    It is from a Traynor piece in the Record.

    I assume the opinions posited in the article came directly from Bain although it could have been Johnston or Paul Murray.

    Referring to the rebel board members, Traynor stated: “They are still wondering how much money for the day-to-day running of the club the new man has in place.

    “They were asking where Wyhte’s cash might be lying and if it is the intention to use season-ticket cash, which they would have ring-fenced to deal with any tax liability should Rangers lose their HMRC battle, for that purpose.”

    I thought it was interesting at the time, as did RTC, and I find it even more intriguing now given the latest developments.

    It appears the old board had some sort of plan to deal with the tax case that involved “ring-fencing” season ticket cash.

    The plan may have been to offer HMRC a set amount over four years secured against season ticket sales or maybe to borrow the money from ticketus secured against future season ticket sales and pay HMRC off.

    The fans would then be told the very future of the club is at stake and a share issue would be launched to ensure the club can get back on its feet.

    Perhaps the same plan for dealing with HMRC is being acted out here.

    It seems a reasonable way of dealing with a dire situation while ensuring the survival of the club.

    I could see it being the only plan open to the old board under Alastair Johnston.

    I think they might have pulled it off too. Most Rangers fans would have trusted Johnston. He wouldn’t have been seen to be acting for personal gain.

    A deal with HMRC using “ring fenced” season ticket sales coupled with a successful share issue could get Rangers back on track.

    If the plan is the same under Craig Whyte, could he pull it off?

    Maybe he could and maybe that’s the plan.

    I still think another scenario is unfolding though.

    A while ago I asked someone who was close to members of the old board about Rangers borrowing from ticketus to buy Jelavic.

    I was told it wasn’t true.

    However, they made it clear that if Whyte took over he would use future season ticket revenue to raise money from ticketus.

    The old board certainly didn’t think the money raised by Whyte in this way would be used to pay the tax bill!

    Sorry for the long post. Hope it makes some sense.

  40. Ray Charles says:

    Oops, wrong thread.

    Sorry

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