CRAIG Whyte’s £24m loan from a London-based investment firm to buy Rangers - secured by the rights to future season ticket sales - was kept quiet from fans for “commercial reasons”, according to one of Whyte’s key business partners.

The claim was made in the High Court in Glasgow by Philip Betts, who subsequently became a director at the club. He explained that the deal with Ticketus was kept under wraps from the seller of the club, Sir David Murray, because they did not want the club’s fans to know 10 per cent of the season ticket money was going to “an English fund”.

Before Whyte took over Rangers in May 2011 the Ibrox club was 85 per cent owned by Murray – but was sold for £1 with conditions contained in a share purchase agreement.

Prosecutors in Whyte’s fraud trial allege the venture capitalist cleared the club’s £18 million bank debt by getting a £24m loan from Ticketus against three years of future club season ticket sales.

The Herald:

Whyte's QC Donald Findlay suggested to Mr Betts, a former Rangers director that Ticketus wanted the deal kept quiet for "commercial reasons" and because they did not want the club's fans to know 10 per cent of the season ticket money was going to "an English fund".

Mr Betts had earlier accepted it would have been “misleading” not to have revealed the role of Ticketus.

But quizzed about the lead up to the May 2011 buyout, claimed Ticketus feared that disclosure would prompt club owner Sir David Murray to set up his own deal and they did not want to do business with him.

As Mr Betts' testimony was wrapped up, the jury heard that Whyte was originally going to pay £5 million for the club, but it was dropped to £1 after the would-be buyer heard unexpected late news of a potential £2.8 million debt to the taxman and a £1.7 million Ibrox improvements bill which Whyte would have to take on.

Mr Findlay pointed out that the extra costs should have taken £4.5 million off the original original asking price, and that Mr Murray could have asked for £500,000.

"So in any view of it , they just took half a million pounds of it and chucked it out the window," he said. "They could have said, we will take £500k but they didn't even do that," he asked.

"No," replied Mr Betts.

Whyte, 46, denies the two charges against him, one of acquiring the club fraudulently in May 2011 and another of "financial assistance" under the Companies Act - which centres on the £18m payment, between Mr Whyte's Wavetower company and Rangers, using Ticketus, to clear the bank debt with Lloyds.

Part of the allegations against Whyte is that he pretended to Sir David Murray and others that “funds were available” to make all agreed-to payments.

These are said to also include, the £2.8m "small tax case" liability, the £1.7m health-and-safety liability plus £5m for the playing squad.

Mr Findlay tackled the legality of the Ticketus deal with Mr Betts - an English asset finance broker – by suggesting that from the outset the "main third party funders" knew the deal would only be completed after Mr Whyte became the owner of Rangers.

"And they wanted, for commercial reasons [for it] to be kept private, and you were aware of that," asked the QC.

The Herald:

"Yes," replied Mr Betts, who became a director of Rangers after the sale of the majority shareholding to Whyte from the Murray Group in 2011.

"It wasn't because anyone was trying to hide anything illegal, it was because they didn't want the public at large, football fans to know that they were giving ten per cent of their money to an English fund and you knew that," said Mr Findlay.

Mr Betts agreed and then agreed that the non-disclosure agreement between Ticketus and Whyte about the season ticket deal was not unusual in the world of business and that the former Rangers owner was obligated to keep schtum.

"And of course by keeping it quiet, he misled the other side of the deal," asked Mr Findlay.

"Yes," replied Mr Betts.

"But was the bank paid?," inquired the QC.

"Yes," answered Mr Betts.

"And was the club in a better position than it had been before the deal?" added Mr Findlay.

"Yes,"Mr Betts responded.

The Herald:

Mr Whyte's aide further agreed that the business plan involved getting rid of the club's debt making it more attractive to investors, saving on paying the bank interest, and hoping to have a run in the Champions League to bring in revenue. "The bank is paid, the stadium is fixed, the tax case was appealed, players were signed.... and Rangers should never have gone near Malmo," said Mr Findlay.

Rangers hopes of reaching the valuable group stages of the Champions League were shattered as they crashed out of the competition at the hands of the Swedish side.

In re-examination by prosecutor Alex Prentice QC Mr Betts agreed that there were two business models operating - one that Whyte and Ticketus knew about and a separate plan namely that Wavetower would produce the £20m.

"So the owner Murray.. would see an entirely different model from the one that you knew was going to happen," asked Mr Prentice.

"Only in the names, the model was the same, but the names had changed," Mr Betts countered.

The witness agreed with Mr Prentice that it looked like the money was coming into the club from an external source, rather than "using the club's money to meet an obligation in terms of the share purchase agreement".

"If Murray was told that Mr Whyte was to use existing assets of the club to meet the obligation to pay the bank, which was fundamental to the share purchase agreement, what do you think he would have said?" quizzed Mr Prentice.

The Herald:

"I don't know. My understand was they were getting pressure from elsewhere to do this transaction, [it was] not just David Murray looking to sell the club," replied the witness.

Whyte was told he would be “mad” to takeover Rangers, the court heard at the start of the week. Former club secretary Gary Withey and Whyte's lawyer said he warned the venture capitalist Sir David Murray's advisers had not been "open and candid" about the financial state of the club.

Mr Withey was quizzed about a so-called “data room” set up for any takeover.

The witness said: “I came into five A4 box files and I was told that was the data room. I was shocked.”

On Tuesday the jury heard that Craig Whyte “laughed” when Mr Withey advised him to walk away from the Rangers take over.

Mr Withey claimed he advised the venture capitalist not to go ahead with the deal because he “didn't like the feel of the transaction”.

Jurors heard Mr Withey was "concerned" that the Murray group would not go through with the takeover if they knew how it would be funded.

Asked why, the witness said: "Because they probably wouldn't have liked the thought of him using Ticketus."

The Herald:

He told the court that the proposal was "not concealed but it wasn't revealed".

On Wednesday jurors heard Ticketus had concerns the deal with Whyte may “embarrass” then Mr Murray as well as upset supporters who may "boycott" buying season tickets if they found out. Earlier Ross Bryan – a fund manager for Ticketus – when asked what was discussed at a meeting with Whyte he said: “In very broad terms, Mr Whyte explained that he was from this neck of the woods, a fan of the club and would be interested in making an offer to the owner to see if they would sell.”

He told the court that after Christmas when the deal had not closed, the firm were “keen” to make sure Sir David knew they were involved or that a financial institution was involved.

The Whyte takeover was sealed with a £1 coin being tossed across a table in Sir David Murray's office, the court heard on Thursday.

The trial, before Judge Lady Stacey, continues.