What now for Rangers?
Broke club could face relegation, European ban and loss
of players
Rangers Football Club will have to reform as a new company and
could be forced to drop to the Scottish Third Division because of
its money problems.
Not only that but it will almost definitely be banned from
European competitions for three years and could lose all of its
players.
The 140-year-old club faced bankruptcy back in February with £55
million of debt. Since then it has been clinging to hopes of
survival based on finding a new owner and persuading the people it
owes money to to accept reduced payments.
But yesterday these hopes were ruined when one of the club's
debtors, the tax office, refused to accept anything other than full
payment of what it is owed, which amounts to at least £21
million.
So Rangers now faces liquidation. That means the company that
owns the club will be dismantled and sold off to pay its debts.
But it does not necessarily mean the end of Rangers Football
Club. It will now be reformed under a new company, or newco.
As a new company, the club will not be allowed to play in any
European competition for three years, under Uefa rules, while many
other questions over its future in football remain.
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find out more about Rangers' future.
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What now for Rangers?
Will Rangers be able to play in the Scottish Premier
League next season?
As a new company, the club will not automatically keep
its place in the SPL. All 12 clubs in the top division will vote on
whether to allow the new Rangers club to take the place of the
original club. An 8-4 majority is needed, meaning that if five or
more clubs vote against Rangers rejoining the SPL it will be
relegated to the Third Division.
The other top clubs now face a major dilemma. On the one hand,
it is a moral issue: Rangers spent funds it did not have in its
quest for success, which could be considered as cheating. Punishing
the club by forcing it to make a fresh start in Scotland's football
leagues would send a warning to other clubs never to try the same
thing.
On the other hand, not having Rangers in the top league would
mean a huge financial blow for all the SPL clubs. Rangers have a
huge number of fans - other clubs often count on tickets sold at
their home games against Rangers to make ends meet. And TV income
could also be lost. Sky has a deal to broadcast SPL matches but
this could fall through if Rangers were not part of the league.
But fans of many of the other top league clubs have said they
are against the new Rangers side being given a place in the SPL. If
many of them chose to boycott Rangers matches the financial impact
on their clubs could be just as damaging.
Will the new club keep its old players?
It is not clear whether current players' contracts would
still be valid in a new club. The Professional Footballers'
Association Scotland has suggested the contracts may not be
transferable which could mean players are able to walk away for
nothing.
Many are planning to leave this summer anyway. Sasa Papac has
already said he is going and will be followed by David Healy.
Others likely to go are: Allan McGregor, Lee Wallace, Steven
Whittaker, Steven Naismith, Kyle Lafferty and captain Steven Davis.
With John Fleck having spent time on loan at Blackpool last season,
he seems another destined to depart, alongside Dorin Goian, Carlos
Bocanegra, Alejandro Bedoya, Maurice Edu and Juan Ortiz.
The new club will have very limited funds and so is unlikely to
be able to attract any big names. That will be especially true if
it is forced to play in the Third Division. This could be seen as
an opportunity to nurture new talent and give young players a
chance to shine.
What will happen to the club's history?
Rangers is the most honoured football club in the world
with the largest haul of silverware: 115 trophies, including the
1972 Uefa Cup Winners' Cup, 27 league cups and 54 league
championships. It is possible that the new club will not be able to
lay claim to any of these titles or trophies. That is what happened
to Airdrieonians FC when it closed in 2002 and was renamed Airdrie
United. But what the fans remember and choose to lay claim to will
be a different matter.
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