Balance of Probabilities


As we wait (impatiently) for the First Tier Tribunal (Tax) to report its findings on the legality of how the EBT used by Rangers was operated, it might be of interest to discuss some common misunderstandings about the legal processes that will determine the outcome.

The case that will seal Rangers’ fate is governed by Scottish civil procedure.  Years of our lives wasted watching television has armed most of us with a basic understanding of criminal procedure- concepts like “innocent until proven guilty” are infused throughout popular culture. However, civil courts have very different rules.

Rangers FC have been accused by HMRC of operating an illegal tax avoidance scheme (see link for common myth about avoidance).  Following a long investigation, in early 2010 Rangers were sent a number of assessments (tax bills). Rangers appealed them.  In the several tribunal hearings that followed, evidence was presented by both sides and now it is for three judges to establish whether or not Rangers pursued an illegal scheme for more than a decade. I have heard lots of people (including Scottish journalists) make the mistake of assuming that “Rangers are innocent until proven guilty“. They are not. The standard for determining the outcome of a civil tribunal is the balance of probabilities. It is simply a question of whether it is more likely than not that Rangers’ were using the EBT as sham to pay money to players and executives on which they should have deducted income tax and national insurance.

In this case, it seems that the Rangers’ directors, and MIH staff in charge of running the scheme did not understand this distinction. Much of their behaviour appears to betray a sense that all they had to do was establish “reasonable doubt” to avoid getting in trouble. Currently, within Edinburgh’s golf club circuit, there is a widely held view that Rangers will be held accountable for some tax liability, but that the quantum will not be anything close to the huge assessments presented by HMRC. People close to Sir David Murray acknowledge that there was some sloppiness with regards record keeping in specific cases.  They seem to think that the resulting tax bill will be limited to these “one-off” errors- situations where there is no doubt that a contractual obligation was paid through the EBT.

However, the standard for determining the outcome of a tax tribunal is the balance of probabilities. If there is a significant volume of such transactions, the entire scheme can be judged to be a sham.

What determines whether there are enough illegal payments to cast the entire scheme as a sham? It will not require proof beyond a reasonable doubt or any of the other concepts burned deep in the minds of TV crime series viewers. There simply comes a point where there is so much evidence that it is clear that someone is “at it”. I expect that Rangers will be held by the judges to have been “at it”. If (or when) that happens, the real fireworks will begin.

Assuming that Rangers’ actions of the last decade are officially deemed illegal, Scottish football authorities will face the greatest moral dilemma in the history of our game. If I am correct, it is likely that the following facts will soon be firmly established:

  • Rangers provided many players with second contracts in violation of SFA rules
  • The provisions within these second contracts were in violation of the law of the land
  • Rangers fielded players whom they could not have afforded without resorting to illegality

Under these conditions, the debate about ‘helicoptering’ a newco into the SPL to replace Rangers FC would surely change. The idea of transferring the last decade of Rangers’ history to a new company would be like asking for a toxic waste dump to be moved beside your house.

I have developed a genuine empathy for the many decent (but largely silent) Rangers fans whose beloved club has been ravaged by Sir David Murray and his hand-picked lickspittles.  Much of what has been revealed on this blog in the last year serves the common good of all Scottish football fans. However, I expect that whatever common ground exists will open into a chasm over the subject of what the SFA & SPL should do about the recent history of their club.

22 May 2005- is a cherished memory for all Rangers fans. Rangers beat Hibs at Easter Road to clinch the SPL title. Neil Doncaster needs to ask: “How many members of the Rangers squad that day were, or would become, beneficiaries of the EBT scheme?” (Let me help him out- it will be a lot easier to count those who did not participate). The truth is that many of the Rangers squad would not have been anywhere near Easter Road that day without the use of the EBT scheme. If the EBT scheme is deemed to be illegal, the SFA and the SPL cannot pretend that the second contracts held by the vast majority of the Rangers’ first team players during the middle of the last decade were just a procedural transgression of no material impact. On the balance of probabilities would Rangers have been crowned Scottish Premier League champions that day without the use of the EBT scheme?

The future value of winning a championship in Scottish football is in the hands of Stewart Regan and Neil Doncaster. They will face intense pressure from those close to the old regime at Ibrox- and their friends in the media- to sweep these issues under the carpet. That would be a huge mistake.

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 for what was (updated) one of the largest football clubs in Britain.

1,501 Responses to Balance of Probabilities

  1. nowoldandgrumpy says:

    Lord Wobbly says:
    19/04/2012 at 9:25 pm
    5 0 Rate This
    Given that some Bears may not fancy going through the pain of having their five star tattoos removed, for a modest fee, I am prepared to add an ‘R’ at the beginning and an ‘S’ at the end.
    =============

    They will keep their 5 stars and say there are there to represent the 5 bidders. 🙂

  2. Michael says:

    For all the posts I have read on here and elsewhere online I have never really understood what happened in the due diligence period when Craig Whyte was purchasing Rangers, never understood why the purchase dragged on and on and have never read the precise mechanics of the deal itself.

    Nevertheless, I think Goosy could be on to something and that it would be interesting to recall all those early pictures of the Motherwell born billionaire and note his associates. For to my mind the missing individual, the Ticketus man, the facilitator of the deal might have been in plain view all the time.

  3. nowoldandgrumpy says:

    Edit

    say they

  4. corsica says:

    I’m so Gwlad Gwlad says:
    18/04/2012 at 11:34 pm

    I think you may have taken my post out of context a little, but not a major issue and I’m not about to fall out over it. I was trying to explain yet again property valuation issues in layman ’s terms.

    I don’t have a problem with your comment particularly in relation to DRC and specialised and public sector assets and how and why it is used. However, I have argued quite forcefully within the industry that DRC is a pile of nonsense because it is an accounting trick. In my honest opinion, it is one of the reasons why the entire western economy is in such a mess – smoke and mirrors – and your explanation actually touched upon this quite subtly.

    Let me put it this way; would you pay more than £25m for a piece of property in Govan that had a single use and a tenant with a very poor covenant?

    In a market economy, my rather simplistic explanation of existing-use value (which, in this case, is essentially a sale and leaseback) actually still stands. And I restate my point, if Ibrox was worth more than £25m this admin would have been over a long time ago as they would have simply put the ground up for a sale and leaseback deal to maximise the creditor pot and keep the business going.

  5. SouthernExile says:

    Goosy says:
    19/04/2012 at 10:07 pm

    Goosy, duff bros will have no worries about collecting their fees, they are super preferred creditor (as I am sure you well know, don’t be so faux naïf!) and selling a player or two will see them all right.

    Pretty sure though that tomorrow is the beginning of the end. Deafening silence about the creditors meeting. Will it be a virtual meeting as proposed by duff or has hector demanded to be there in person? Will duff be elbowed by hector who put in their own man to liquidate?

    How is the ticketus position affected by the ruling that their rights on the seats are contractual and not real, so don’t carry over to a newco (if you believe in the newco fairy?).

    Has the GEF been too clever for his own good?

    So much to come, lovin’ it!

  6. weelogic says:

    @ Goosy

    I think that the suggestion that D&P have been setting aside their fees is spot on. After all, they are no longer plain MCR, relative low-ball players in the UK market (yes, I know that they did MFI and Borders, so they have *some* credibility), but they are now part of a global firm. I think that the top brass will have a say if they come out with nothing to show for £1.5m of billable hours…

    That means that the pot is looking rather sparse.

  7. SouthernExile says:

    Mark says:
    19/04/2012 at 10:30 pm
     1 0 Rate This
    Goosy

    I think you just “Goosed” CW and Ticketus, I watched a movie the other night and the title seems to apply to you tonight, I give you the aptly named “a beautiful mind”
    ————

    He’s just laying his golden eggs – and ain’t none of them going to hatch into a phoenix!

    Goosy Goosy gander, went for a wander!

  8. corsica says:

    As stated previously I do not do twitter but I am told that Matt Slater of BBC has some very interesting tweets out tonight around about 19.40 (UK time). Might be an idea if someone technically adroit can check them out and post here.

  9. rcp231 says:

    I believe the btc is expected to be up to £75m.
    What if it came out tomorrow at say:-
    a. 0 b. £15m or c. £30m.

    What would be rangers chances of survival? And if they did survive what quality of life could they have for the next 5-10 years?

  10. Mark says:

    lex Gates ‏ @Alex_G_1690

    · Open

    What’s this about Miller and a fleshed-out CVA plan?
    2h Iain A Iain A ‏ @Iainang

    · Open

    @Alex_G_1690 where you see this?
    Alex Gates Alex Gates ‏ @Alex_G_1690

    Close

    @Iainang Matt Slater BBC.Seems he,and the rest of us,may have been blind to Miller’s intentions.
    Hide conversation
    8:27 PM – 19 Apr 12 via Twitter for BlackBerry® · Details

    Reply
    Retweet
    Favorite

    2h Iain A Iain A ‏ @Iainang

    · Open

    @Alex_G_1690 so is he saying miller is planning a cva mate?
    2h Alex Gates Alex Gates ‏ @Alex_G_1690

    · Open

    @Iainang Yeah,seems quite glowing about it.
    2h Iain A Iain A ‏ @Iainang

    · Open

    @Alex_G_1690 I don’t know what to believe these days mate, worst 2 months ever eh
    2h Alex Gates Alex Gates ‏ @Alex_G_1690

    · Open

    @Iainang He says no one has really heard of Ng in Singapore “small time stockbroker”.I don’t believe that.He has serious clout backing him.
    2h Iain A Iain A ‏ @Iainang

    · Open

    @Alex_G_1690 I just wish it was all over mate, With us in tact

  11. tokentim says:

    Matt Slater on the BBC earlier tonight.

    With all due respect to lovers of lazy afternoons spent reading new books for free and fans of cheap kitchens, trying to keep the likes of Borders and MFI from ruin is not quite the same thing as rescuing Rangers.

    Borders’ typical customer might write an angry letter about its demise to a broadsheet but they are unlikely to chant obscenities at you for 90 minutes on a Saturday afternoon. And the death throes of a furniture chain were meat and drink to the Financial Times but they were not the stuff of front-page splashes in the tabloids.

    That, however, is the situation Paul Clark and David Whitehouse find themselves in now as the joint administrators of a Scottish institution and global football brand.

    The bankruptcies of Borders and MFI were no doubt painful for all concerned, particularly the staff, but they will seem like minor disappointments compared to the apocalyptic gloom that will descend if the Duff & Phelps pair lose Rangers.

    Back on Valentine’s Day, when Clark and Whitehouse were given the job of saving “the world’s most successful football club”, many felt only a miracle would prevent Rangers’ 140-year history from coming to an abrupt end.

    A dramatic first fortnight in financial intensive care has convinced some that this will be a long and messy administration, with lots of litigation. But I am now no longer so sure Rangers will be wound up.

    It is right to fear the worst for Rangers Football Club plc, but it could be argued that the football team fielded by that company will end up playing football for a company with a very similar name, in the same colours and the same league.

    Rangers fans showed their loyalty in the Premier League game against Kilmarnock. Photo: Getty
    The Scottish champions spend at least £10m a year more than they bring in, they have almost no chance of being allowed to play European football next year (a situation that will only exacerbate their annual deficit) and they are a few weeks away from being presented with a bill they cannot settle.

    That Rangers will lose their appeal against Her Majesty’s Revenue and Customs (HMRC) in the now infamous “big tax case” is no longer up for real debate. What remains uncertain is how badly they will lose.

    Will it be the knockout for HMRC that some have suggested (up to £75m in back taxes, interest and penalties) or a partial defeat of perhaps as little as £10m?

    The size, timing and very existence of this tax dispute has been a topic of fevered debate for over a year, so it is hardly surprising that it should take on almost mythical proportions now.

    But here’s the thing, Rangers’ debts are so great that the actual number spat out by the tribunal does not really matter – £10m, £30m, £50m…it is just another ‘IOU’ to add to the pile.

    Rangers are not in administration now because of the reckoning that is coming for their alleged abuse of tax avoidance schemes going back to 2001. They are in the mire now because they have been using “the bank of HMRC” to fund the club’s activities since May.

    Winning the case is still vital for HMRC (see Tuesday’s surprise move against Barclays for further evidence of the taxman’s clampdown on those who do not pay their dues) but that has more to do with the City of London than the city of Glasgow.

    Rangers, on the other hand, just need this to be over. They need the certainty of a number – it almost does not matter how big that number is.

    So forgive me if this sounds like heresy but the big tax case has become a sideshow.

    The real issue is how much money can be recovered from this horrible mess. Will taxpayers get a better return from a company that can still sell tickets for games at Ibrox next year or will more money be raised from a fire sale?

    A few weeks ago I thought HMRC might opt for the latter, if only to put a great big head on a stick and wave it menacingly at the rest of British football. But the background noises coming from Ibrox, the Revenue and the insolvency industry suggest a compromise is possible.

    There are a few important reasons for this.

    One, HMRC does not really want to shut down Rangers if it can help it. The political blowback would be considerable and taxpayers could question the logic of the taxman’s actions.

    Two, there is no football creditor rule in Scotland for HMRC to take its usual principled stance against – millionaire players are not given special treatment in football insolvencies north of the border.

    Fans feel deeply upset by the goings on at the club. Photo: Getty
    And three, what HMRC really wants is a proper look at all the murky goings-on at Rangers going back a decade. To do this you need the investigatory powers of a liquidator, not the financial restructuring nous of an administrator.

    In fact, the taxman needs both and that is exactly what he got at Portsmouth in 2010.

    The Premier League’s first insolvency ended with a 20p-in-the-pound deal for creditors, the transfer of assets and liabilities to a new company, and the liquidation and investigation of the old company. That process took nine months and the investigation has a long way to go.

    A similar deal for Rangers would make Clark and Whitehouse’s task of finding a new owner for the club exponentially easier. That owner, or owners, will need the wherewithal to settle the renegotiated debt and that is unlikely without Scottish Premier League football and a timely return to Europe.

    A more aggressive liquidation would leave a “new Rangers” outside of Europe for three years and possibly outside Scotland’s top flight too. Frankly, there would be no business case to speak of for many, many years.

    There is, of course, one stumbling block to this pragmatic solution (I leave aside for now any comment on the sporting ethics of all this) and he is currently holed-up in a posh apartment block in Monaco.

    In some ways Craig Whyte is irrelevant to what is happening.

    OK, he is playing a convincing and useful role as the baddie in this pantomime. But it is not entirely his fault the club are broke and he certainly cannot be blamed for the Employee Benefit Trust ruse. This storm has been building for some time and it was going to erupt on somebody eventually.

    Whyte, however, is relevant to what happens next. Quite simply there is no deal between club and Crown that leaves the erstwhile owner “quids in”. He has to go and he cannot be seen to be doing nicely out of this.

    But there is one useful service he can still provide and that is to be the template of the kind of person who should fail Scottish football’s new “fit and proper person” test, just as soon as they get around to introducing one.

    As well as my blogs, you can follow me on Twitter when I’m out and about.

  12. scapa says:

    For Corsica

    “that’s what Ticketus claim @MurrayMurray5 it’s part of their security from CW
    what’s your point? @edrl Admins often take a bit of a haircut in these cases, dare I say that’s why they bill so conscientiously?
    singing to choir re Ng @eileenmullane01 nobody of financial substance has heard of him in S’pore. Small-time stockbroker.
    maybe @redken_ but he’s been consistent from start, ‘I’m here if you need me’ – admins don’t want that, he’ll go low on their fees
    That’s it for now, let’s see what Miller comes up with, will be complicated (desperate to avoid ‘L’ word) but he’s got cash #RFC
    Ng fans will be pleased to know he has shown admins “evidence of capability” to finance deal, not quite proof of funds, tho #RFC
    …in truth, SPL inquiry has hardly started as they haven’t seen papers but they say up to 18 sanctions are possible, not new, tho
    One more thing, admins say SPL threatening new penalties if/when #RFC lose EBT case, SPL denies this & says inquiry ongoing…
    ..it seems I underestimated Bill Miller & he is set to announce a fleshed-out CVA plan…stand by your beds #RFC
    …Ticketus in talks with Ng and TBK, will deal w/ whoever gives them best return, they in turn will provide ££ & Whyte’s shares…
    Right, it’s getting murky. This from @BBCchrismclaug is good starting point http://www.bbc.co.uk/sport/0/football/17683898 – Kennedy just verbal & v low…
    Lots to report #RFC fans, let me get my ducks in a row & I’ll get it out there asap
    4) & a hard-boiled businessman, with a penchant for deal-making & track record in British sport…he’s a reluctant owner, alright!
    3) a would-be sports entrepreneur with money to spend & advisors in his ear telling him a soccerball team can be sliced & diced
    • Close Open Details
    2) An obscure small-time businessman from Far East, with no serious backing or expertise, who is probably along for the ride
    Let’s outline those bids 1) a coalition of well-intentioned but financially constrained fans fronted by man hated by existing owner
    So Kennedy’s ‘significantly’ improved offer wasn’t significantly improved enough. Make no mistake, this is high-stakes poker #RFC

  13. fara says:

    @goosy
    I’m sorry my friend but their is a fly in your theories ointment. Remember smudger says that the MBB started to panic only after rfc (ia) got knocked out of europe and that is when things started to change for the worst. Oh wait a minute didn’t I hear him on tv the other night saying that he knew nuthin. hmmm, maybe you are right afterall. 🙂

  14. BarinMain says:

    From Follow Follow

    Brian Kennedy Statement in full::Why a Hibs fan wants to save Gers

  15. Ianc says:

    In my opinion anyone approaching this would tell D&P to spend their 500k not on a look at the books (which would be a known horror story) but getting the CB case in court pronto. They may well find a major bank offering them some serious F off money . Far more profitable

  16. yippekayyay_RFC says:

    Does anyone else feel like their a kid again? You remember that excitement when your a kid and it’s Christmas eve? you go to bed, but you really don’t want to. The anticipation and excitement about what is waiting downstairs for you in the morning. You know if you stay up your going to be a while before you dare go downstairs. The risk of getting caught sneaking off downstairs put’s you off. The boredom set’s in as you impatiently wait till it’s the right time. you eventually give in and try to go to sleep, but it’s useless. You know there is something going to be there for you in the morning. It might not be a lot of presents, it might just be a couple of small presents sat next to a really big present. But you know there is definitely a present of some description there. You toss and turn a bit more until finally you cave in and go to sleep.

    Hooray!! you wake up and realize that Christmas is here. You quickly leap out of bed, don’t bother with your slippers. Totally bypass the bathroom and brushing your teeth, just straight down the stairs to the main event. Your eyes are bristling with excitement, you can hardly contain yourself as you stare at the stack of goodies that await you. Your parents hand you one of the smaller presents, your eyes on the big one. You open your present quickly and give it a casual glance then place it to the side and swiftly on to the next present, eyes firmly on the big present. you eventually get there, and what a present it is. All year you had dreamed of this present. You’ve looked around the shops, in the catalogue, seen what your friends have and now finally here is the treasured thing you have coveted for so long. you can now see it for all it’s glory. You want to tell everyone about it, show off what you have got.

    Well i think that sums up how i’m feeling at the moment. The earlier rumour’s, although they are just rumour’s, have really got me excited, got me feeling like a kid at Christmas eve. Even if the big present I am hoping for is not ready, i’m sure there will be a couple of wee presents waiting to be unwrapped. One thing for sure if, when i wake up in the morning. I’ll go downstairs and switch on my computer. I’ll have a quick look at my favorite site for the latest present. It might not be the big one, it might just be another post from RTC (never a disappointing present to be casually glanced at, then chucked away.). I will then go about my daily routine, blackberry at the ready for updates. I will be impatient all day, tomorrow might not be the day, might be another week. One thing’s for sure, I’ve got my eye on the big present and i can wait 🙂

  17. yojimbo56 says:

    Goosy says:
    19/04/2012 at 9:16 pm

    #######

    That’s a very persuasive analysis Goosy, even though it depends on CW possessing a Machiavellian genius that I refuse to acknowledge. One thing seems sure though, someone somewhere is chuckling with their hand on the tiller, steering the Good Ship RFC straight onto the rocks for their own personal gain or satisfaction.

  18. Ianc says:

    twitter is what it is. One of the main ones missed was that yon crash yer car n tow ye away chappie and his kid had been selling recently and now have 50mil (presume dollars) cash. Would still be mad (unless he follows my previous advice)

  19. Johnboy says:

    So, have Duff & Duffer – who advised Whyte before, during and after his fakeover right up till the A-bomb landed – got any idea yet what their client is owed, what RFC Group is owed, what their Fixed Charge is, what the Floating Charge amounts to or what security Whyte gave to Ticketus?
    Whaddaye mean they’ve known it all along?
    Why aren’t they telling us then? Why?

  20. Goosy says:

    1. ekwellfan says:
    19/04/2012 at 10:31 pm

    1. Could this mean that the coffers are nearly empty 2 weeks before they would have been if administration had been delayed to the planned time?
    Thoughts??
    ,,,,,,,,,,,,,,,,,,
    Spot on
    With one exception
    We are working on Plan B
    Plan A was to (hopefully) liquidate just before MCR were taken over by Duff & Phelps so MCR could fudge being appointed as Administrators but still play their part in this (legal) scam of RFC and their fans(i.e. around Nov 2011)
    Also on assumption that FTT would rule in late Oct 2011
    But you are correct I believe in assuming CW intended to spin out the “notice of administration” before announcing a late April prepack
    He probably only left enough money in the till to last until about now. Perhaps if D&P had spent less on lawyers and PR they might have got another week or so
    Actually
    The unsung hero of this saga isn`t CW or HMRC
    It’s the FTT
    They figured out (or agreed with Wee Eck) that delaying this decision beyond April was in the overall interest of the nation and if that meant liquidation before the FTT reported then so be it

  21. JJ says:

    Re Matt Slater

    “One, HMRC does not really want to shut down Rangers if it can help it. The political blowback would be considerable and taxpayers could question the logic of the taxman’s actions.”

    Given the fact that HMRC is under severe pressure because of sweetheart deals and the fact that they need to demonstrate that there are serious sanctions for aggressive and fraudulent, in their eyes hence the charging of penalties, – the fallout for doing a deal would be greater. And by the way, HMRC don’t give a hoot what “taxpayer’s” think!

    “Two, there is no football creditor rule in Scotland for HMRC to take its usual principled stance against – millionaire players are not given special treatment in football insolvencies north of the border.”

    In which case the normal policy as relates to non football business will apply. “No deals with deliberate defaulters”

    “And three, what HMRC really wants is a proper look at all the murky goings-on at Rangers going back a decade. To do this you need the investigatory powers of a liquidator, not the financial restructuring nous of an administrator.”

    They have already had a close look. That’s why they’ve raised a tax bill, charged penalties and spent weeks at a Tribunal!

  22. Ianc says:

    “Also on assumption that FTT would rule in late Oct 2011”

    As I have told this Blog numerous times the G and the R’s wer Fvvcked on the ONEO machine and the eplacement ones we have a e now broken too!

    Give us space to adjudicate you noisy Scottish people!

  23. Carntyne says:

    Duff & Phelps actions as administrators have been a bit strange to say the least, and the actions of those making bids, or at least supposedly making bids for the the company, seems equally bizarre.

    For instance the Kennedy bid, now you see it, now you don’t, then you see it again, doubled apparently, but it’s rejected by the administrators because it’s only verbal.

    Then there’s the Blue Knights.

    They apparently had a deal with TicketUs to make a bid, but oh, wait a minute, they’re now taking a step back because TicketUs is now talking to Bill Ng, but wait a minute Bill Ng says he hasn’t talked to TicketUs, but wait a minute Bill Ng then says he may pull out because TicketUs are back talking to the Blue Knights.

    Then there’s Bill Miller the American.

    Last week it was reported that the administrators had ruled out his bid, but magically it was reported yesterday that it was back on again, presumably because at that stage there was only one bidder left, Mr Ng, and American Bill would give him some competition.

    Of course that was yesterday.

    Today it was all change again.

    Whatever happened to the German and British consortiums I’ve lost track.

    A strange game of musical chairs with the money running out and Messrs Duff & Phelps the only people guaranteed to get paid, and paid a small fortune.

    Throw into the mix Craig Whyte’s claims that he wants £30mill for his shares.

    Does anybody still think a CVA is a goer?

  24. I'm so Gwlad Gwlad says:

    corsica says:

    19/04/2012 at 10:37 pm

    Hi Corsica, I thought you explained it very well, and forgive me for feeling corrected…………my intention was to show how different professions approach the same issue in a different way………….

    I agree with your point over DRC, it can be very misleading in company accounts unless the reader is fully informed……….DRC is hard to understand even for the cognescenti…………….in fact the fixed asset total in RFC’s accounts is meaningless without the full fixed assets register and detailed calculations, the disclosed total is the product of a whole series of historic costs, estimates, assumptions, indices and sums and is of course open to manipulation…………DRC is fundamentally an economic theory………it has merit, but I think has no place in accounting…..

    In my opinion it would be better to stick to historic cost in the accounts, it takes judgement out of the equation and is clear, measurable and can’t be fudged………then disclose replacement cost and open market value separately in notes if necessary……..company boards should insist on this information regularly anway and this should force the same behaviours as the DRC imperative…….but I don’t think RFC can be criticised for using it, most accountants would regard it as best practice….

    I was interested in your estimates of the gap between existing and alternative use values for Ibrox…….roughly £10m, quite a risk for the investor if tenant RFC were to fold…………my earlier post about Stamford Bridge in the 1980s the numbers would be the other way round, the ground was much more valuable as a housing scheme, hence the bumpy ride when property developers bought it……….being shafted by a predatory developer wouldn’t seem such a risk for RFC……

    Anyhoo, late and off to bed, I have to think up a way to avoid taking my son to see Battleship tomorrow……..

  25. Derek says:

    Goosy says:
    19/04/2012 at 11:49 pm
    Actually
    The unsung hero of this saga isn`t CW or HMRC
    It’s the FTT
    They figured out (or agreed with Wee Eck) that delaying this decision beyond April was in the overall interest of the nation and if that meant liquidation before the FTT reported then so be it
    ——————————————————-
    ha ha ha – nice one Goosy. Very droll.

  26. Ianc says:

    OK Laughing policeman time love it. Thanks Charle Penrose

  27. Derek says:

    Carntyne says:
    20/04/2012 at 12:01 am

    A strange game of musical chairs with the money running out and Messrs Duff & Phelps the only people guaranteed to get paid, and paid a small fortune.
    —————————————————————-
    HMRC will receive post Admin PAYE/NIC/VAT as expenses of the Admin.
    ——————————————————————————————

    Does anybody still think a CVA is a goer?
    —————————————————–
    Not a chance

  28. Sean Mckay says:

    tokentim says:
    19/04/2012 at 11:19 pm

    Matt Slater on the BBC earlier tonight.

    ————————————————————–

    12:03 UK time, Wednesday, 29 February 2012???

  29. Slimshady says:

    The smoke is clearing, actions speak louder than words, talk is cheap, RFC (IA) is even cheaper but even at that it is too expensive for anyone.

    D&D say they will only accept unconditional offers from someone seeking to be preferred bidder

    No one has made, can make, or will make, an unconditional offer for RFC(A) other than Terry (All Gold) and his 5 empties (plus lids & directions to Bhutta’s newsagents in Copland Rd).

    Whisper it but the truth is simple and it is this:-

    There are no bidders for RFC (IA).

    RFC(IA) will simply run out of money and be liquidated, from the comments of D&D most likely in the course of next week.

    There will be no football at Ibrox next season, of any description.

    The corpse will twist in the wind for many weeks and months to come.

    54 (cliches) to 0

  30. SouthernExile says:

    yojimbo56 says:
    19/04/2012 at 11:40 pm
     3 0 Rate This
    Goosy says:
    19/04/2012 at 9:16 pm

    #######

    That’s a very persuasive analysis Goosy, even though it depends on CW possessing a Machiavellian genius that I refuse to acknowledge. One thing seems sure though, someone somewhere is chuckling with their hand on the tiller, steering the Good Ship RFC straight onto the rocks for their own personal gain or satisfaction.
    —————————
    It’s a big ask given his bottom feeding existence of the past twenty years and the low life scum he hangs out with. Can’t keep up maintenance for his bint and his bairns. Can’t insure his castle or put new slates on the roof without falling out with his contractor and being called a liar by a judge. Nicks money from innocent pensioners. Can’t give an interview without sounding like a tit. Hey craigie, sure you’re reading this, you really are a cvnt.

    Maybe somebody’s pulling his strings, or his plonker.

  31. Ianc says:

    Believe me he Craigie is bank funded and in charge.

  32. Thornlyboy says:

    Suddenly Bill Miller seems to have re-entered the fray as the ‘front runner’ (I know). Any views?

    Also, even if the PB is announced tomorrow, unless they have ponied up at least £500k it will make no difference to the imediate cash-flow issue. Have D+P hideousely miscalculated? Is it about to go tits-up for all of them?

    In Mr slater’s scenario, is it the oldco, a newco, or what? If the oldco is retained, they will still have to face the footballing penalties of the EBTs, never mind what deal HMRC cuts with them.

  33. Ianc says:

    See earlier hes upped his cash. Still a fool.

  34. DAVAD00 says:

    Derek @12.10am
    Slimshady @12.13am 20/04 /12

    Just about ready to call it a night after another day of exciting speculation. The two above mentioned posts, from possibly two of the most reveered posters on RTC, finish off the day, with a major boost. The sentiments within the posts of two trusted contributors just made my day.

    Roll on tomorrow.

  35. Doon the slope says:

    RTC

    I hope you aren’t sulking under the stairs or throwing a tantrum at their shocking omission tonight. Then their rubbing salt, mustard, vinegar and sulphuric acid into the wound, by giving the gong to Mr Jackson.

    The words “off the radar” and “fakeover”, have been on a lot of blog sites tonight, including this one.

    The first term was uttered by Jackson. The second by you.

    Says it all. We know who the real winner is!!!

    (Can I have my Curly-Wurly back?)

  36. SouthernExile says:

    Ianc says:
    20/04/2012 at 12:23 am
     0 0 Rate This
    Believe me he Craigie is bank funded and in charge.
    ———
    Fess up then lanc, who’s the bank?

  37. Goosy says:

    Isn`t it amazing
    in the week in which RFC are on their knees and liquidation beckons
    With so called bidders slapping unacceptable conditions on their bids
    With one bidder having the cheek to make a verbal offer
    When the SPL and SFA are in turmoil
    When the first Hearts Hibs Cup Final in 120 yrs is imminent
    Despite all these talking points
    ,,,,,,,,,,,,,,,,
    A reporter who can`t google “Craig Whyte billionaire” wins “Jounalist of the Year”

    And

    SSB spend almost 8hrs from Mon to Thur (check it yourself) talking about Neil Lennon

    I would normally say at this point “It beggars belief”

    but sadly it doesn`t

    One might think that too much mutton has addled the brain
    But its more like
    Too little brain has addled the mutton

  38. Private Land says:

    Wonderful irony in this email received today from the NUJ. Could not make it up 🙂

    Mail From NUJ: ADVANCED INTERNET RESEARCH COURSE

    SOME FEEDBACK FROM PREVIOUS LEARNERS ON THE ADVANCED INTERNET RESEARCH COURSE

    • “This course has really broadened my mind on ways to use the internet. It was fascinating and hugely helpful.”

    • “Very useful – this was an amazing course.”

    • “Brilliant course, packed full with information, practical advice and tools.”

    We still have places available on this course running in Glasgow on 26th April and in Edinburgh on 27th April. The course costs £100 for NUJ members and is eligible for funding under the ILA scheme. I’ve attached the full course outline and, if you wish to reserve a space, please contact XXXXX XXXXXXXXX at XXXXXX@nuj.org.uk or by phone on 0141 XXX XXXX.

    Perhaps a place in the course was a prize at the journalist of the year awards?

    😈

  39. Jim McNellis says:

    iki says:
    19/04/2012 at 9:55 pm

    Keith Jackson Sport News Writer of the Year 2012.
    I used to think that I had heard it all when Kissinger won Nobel Peace Prize.
    *********************************************************************************
    Perhaps you give us a hint, iki, as to what his true award should be. The IgPulitzer prize. After all, the stated spirit of the Ig’s is that it should be awarded to that which “cannot, or should not, be reproduced”.
    Jackson certainly seems to fit the bill for the Ig’s, no problem!!!

  40. john clarke says:

    goosy says
    20/04/2012 @12.46 a.m.
    ‘Isn’t it amazing…..’
    ———
    Nice one , Goosy, like your earlier post about the Ticketus/Whyte nexus.

    The world and his wife know that there have been/are allegations that :

    a) a serious criminal offence of fraud has been perpetrated…(CW),

    b) a conspiracy to perpetrate a fraud has been engineered(CW and Ticketus),

    c) a ‘respectable’ ‘institution’, part of that fabric of Scottish society which swears by its allegiance to Queen and Country ( i.e. RFC(IA)) ,has massively defrauded the object of their allegiance by not paying its taxes

    d) senior politicians have tried to influence matters connected to these allegations (First Minister, M Fraser MSP, Joan McAlpine MSP are publicly known examples)

    e) Scottish media outlets as a whole have acted as PR people for RFC(IA) either as a result of partisanship or sheer professional incompetence

    f) there was an incestuous relationship between a member of the SPL and the ultimate authority charged with the regulation of Scottish Football ( the SFA) such that permitted serious breaches of several of that authority’s own rules not only to go unchecked but even be rewarded

    g) the consequences of the wrong-doing of this member club of the SPL have been seriously financially damaging to other member clubs of the SPL, and in terms of sporting success and achievement utterly distorting of any true notion of legitimate sporting success

    h) the possible damage to the integrity of Scottish football in the European and World scene has been seriously compromised

    i) the same authorities in Scottish Football will bend, break or change the rules to accommodate the allegedly delinquent club because ‘they are too big to fail’ and are ‘needed’

    Against that background which presents great opportunities for journalistic endeavour, OUR MEDIA focus on Neil Lennon!

    Says it all.

    Are we surprised? No.
    Are we disappointed? Yes, personally, a wee bit.
    I had actually believed that the secularisation of our society over the last 40 years or so ( oh, 1968 where are you?) had made us a bit more civically ‘just’.
    But, it seems, there is still a residue , perhaps smaller but still powerfully influential, of deep-rooted support for a very dodgy concept ( WATP) and all the negatives that that represents.

    I sigh. I weary. When will they ever learn?

  41. gorillaintheroom says:

    Right….this is a 100% guaranteed proper kosher info. My brother in law who is a taxi driver sometimes has trouble with his brakes. He brings his car to cooper bros in newmains and cumbernauld and now she’s running sweet as. Quality.

  42. Whullie says:

    nowoldandgrumpy says:
    19/04/2012 at 10:31 pm

    They will keep their 5 stars and say there are there to represent the 5 bidders.

    ————————————————————————————————–

    Just for the record re 5 stars and 5 bidders. Having lived in Hong Kong for a couple of years, Ng (as in Bill Ng) is the number 5 in Cantonese.

  43. twopanda bears says:

    BBC 24 Asian News – Heard twice now

    Singapore Businessman Bill Ng excited by Premier League Bid for Rangers

    BBC Spokesman says Premier League is a 2.4 Billion Industry with many foreign owners of big clubs tapping into South East Asian Economies Interest……. – even gives “bragging rights”……..

    I just knew those sly boots D+P were keeping a good thing to themselves by fooling us all the time

  44. renfrewdave says:

    anyone else think we should all club in and book a few places on the ADVANCED INTERNET RESEARCH COURSE for HK, DK, KJ… go on it will be a laugh

    for some reason i have a pcture of the course teacher as a drill instructor ” right you lousy internet bampots drop and give me 50 searchings of the meaning of GEF, MBB, succulent lamb…….

  45. OLE MUNGO BOY says:

    Don’t want to get Ciceronian here but ponder the following

    1 “In the absence of Justice ,we have to make do with the Law”

    2 “The Law is not an instrument of Justice, it is an instrument of Power”

    1 above might have been a direct quote from Paul McBride (RIP)
    2 above is as succint an expresion of WATP syndrome that I have come across

    ………………….and so to bed , wondering when the adress of MBBM’ s Monaco appartment will appear in public ,given that some Bears have not yet finalised their holiday plans and Ryanair ……………… but BASTA !!

  46. Fisiani says:

    20th April today. Administration began Feb 14th. Not a single valid and acceptable bid made for the club. Debts accumulating daily.
    The patient is on life support. Pupils are fixed and dilated. There is still a faint pulse.
    For goodness sake. Flick the switch.

  47. StevieBC says:

    Fisiani says: 20/04/2012 at 4:05 am

    … For goodness sake. Flick the switch.
    ================================
    No.
    Let’s point and laugh for a bit longer…
    Then flick the switch…ever so slowly.
    My bad? 😉

  48. Fisiani says:

    being 11 hours ahead in New Zealand I can give you the Friday press conference report. from the Duffs.
    There being no acceptable offers submitted we have no option but to recommend liquidation with effect from May 14th at the conclusion of the season.

  49. stunney says:

    …Such rhetoric suggests Duff and Phelps are unable to accept any offers currently on the table having considered written bids from the Blue Knights consortium, the American tycoon Bill Miller and Ng.

    Ng, meanwhile, is still hoping to be named preferred bidder by the end of this week after tabling his £20m offer to take control. However, he has revealed he is losing patience with the process and is unhappy at Ticketus’ demands for a credit repayment scheme for the money they handed over to the owner, Craig Whyte, who used it to help purchase the club. Ticketus have rights to £27m of season tickets at Ibrox for the next three seasons.

    Ng, a 52-year-old private equity firm director who looked as if he and his five-man consortium were the frontrunners this week, now could be ready to pull the plug on the deal altogether.

    He claims Ticketus are asking for a £17.5m pay-off, from the original figure in negotiations which started at £5m. He is not prepared to pay that.

    Sources in Singapore have already stated he’s looking at other business ventures in Europe instead, including hotel ownership.

    Ng said: “Despite all the talk of us being the favourites, I’m very frustrated because of the way Ticketus are treating us.

    “As a creditor, it has no right to hold investors around the neck as it is doing. It is increasing its demands each week, and this is on top of our offer for the club. It was £10m before, then £12m, now this. I’m running out of patience and time.”

    Ng had set aside a figure of £12m to pay creditors, but he looks close to pulling out of the race.

    The Blue Knights, spearheaded by the former Rangers director Paul Murray, were involved in discussions yesterday after reconsidering their decision to step back from the process on Monday in a bid to facilitate a quick deal.

    Ticketus, for their part, confirmed they are still speaking to the Blue Knights and Ng, but will leave it to the administrators to choose the preferred bidder.

    A spokesman for Ticketus said: “Despite some reports [to the contrary] we have been talking to Paul Murray by phone on and off since Monday, and are still talking about a possible joint bid. We are also still in discussion with the Singaporean bidders.”

    There are numerous areas of uncertainty surrounding the process including the rights of Whyte, who bought his 85% shareholding for £1. Duff and Phelps have dismissed him as an “irrelevance” but Whyte insists he has £30m on the line.

    Other outstanding issues, apart from the Ticketus situation, include the outcome of the big tax case and April 30 vote on the Scottish Premier League’s financial fair play proposals.
    http://www.heraldscotland.com/sport/football/new-kennedy-offer-rejected-as-frustrated-ng-threatens-to-withdraw-from-bidding-process.17362488

    ————————————————————————————

    Where oh where is Tow Truck Tycoon “Silly” Billy Miller in all this, er, conditionalityfest? Surely he’s not simply sitting at home in Conditionalityville, awaiting liquidation for RFC(IA) and unconditional guarantees from those sublime spectacles of integrity, the SFA and SPL, that a newco Rangers will be admitted to the SPL in time to commence playing season 2012-13?

    Or is he?

    Still, at least Duck & Quacks are hurrying things along now.

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