Can someone please explain how.....

Rangers FC could rack up £49m of Debt plus £20m in penalties to HMRC.

I know it relates to an Employee benefit trust set up by the club for its players, but thats where my understanding ends.

Were they using this trusts as an under handed way of paying players to avoid PAYE??

Surely if they are found guilty and forced to cough up that sort of money on top of their other debts, that would be the end of the club as it stands now and force them to start again in the lower leagues??? Or as it's one of the big two would the SFA, some how bend the rules and allow them to carry on in the SPL.

TIA

 

Weren't Gretna in a similar situation?

Albeit, not to the same degree (I don't think).

 

Re: Weren't Gretna in a similar situation?

Don't know how they could rack that up, but that's why they are getting ready to go into admin so if they are found guilty of this they can quickly go into admin to try to avoid paying.

 

Re: Weren't Gretna in a similar situation?

HMRC have applied for Rangers to be placed in administration. Trying to beat the club filing for protection against it's creditors.

 

Re: Weren't Gretna in a similar situation?

Although I don't particularly like them I am 100% behind HMRC.

 

Re: Weren't Gretna in a similar situation?

Agreed.... Only a football club could get away with it......

Lets be honest could any other business that was losing £24m per year (I think that was the figure used in a newspaper), owes HMRC £70m hope to continue to trade......

The Portsmouth situation pisses me off but this is in a different league...

One day I hope HMRC manages to put a club out of business because this would force Football clubs to finally put there houses in order and stop being run like a 12 year old play Championship Manager!!

 

I'm not an expert, but it sounds like they did a tax fiddle to pay players over several years... and then got caught out. So they owe income tax for most of their top players for a few years. And at 40% roughly of 20K/week it adds up over 400K/player/year for the top earners. Say 15 players and it becomes over £6million a year, plus interest on top.

 

now in admin

 

What a disgrace......

As HMRC are an unsecured creditor they'll be lucky to get 5p-10p in the pound. Effectively reducing a possible £70m debt to a mere £3.5m - £7m.

All the will get is a 10pts deduction.... Which because of the state of Scottish football will still probably see them in the Champions League qualifying rounds for next season!!

Why are Football clubs allowed to do this and carry on trading.... no doubt the next 10 bob millionaire will be in Charge in a few months after picking the club up for next to nothing and then the cycle can start again......

Criminal charges should be brought against the previous owners who stuck them in this mess and then did a runner.... but then again HMRC have tried that didnt they and ended up with egg on their faces....

Cheating the public purse for £70m......... In a time of Public sector job losses and budget cuts thats sort of money goes a very very long way!!

 

They should be wound up. There should not be one rule for the Salisbury City's and Halifax Towns, and another for the big city clubs.

 

Correct, 9 in a row by cheating.

 

Totally agree and I hope that this time HMRC wind them up. Something has to stop this cycle of greed in football.

 

I'd rather they were forced to cut their costs accordingly and pay back everyone they owe in full, over whatever time-frame it takes. It's too easy to be wound up, re-formed under a slightly different name and back on the treadmill.