ADMINISTRATORS battling to save Rangers have yet to find evidence owner Craig Whyte put any of his own money into the club.
Despite claims by the embattled venture capitalist that he pumped £33 million of his personal wealth into Ibrox, sources say they cannot detect any such investment.
The development came as director of football Gordon Smith and chief operating officer Ali Russell were made redundant yesterday, with administrators Duff and Phelps also confirming the tax debt run up since Whyte took over in May is around £5m more than previously thought.
Mr Smith, a former chief executive of the Scottish Football Association, rejoined the club he once played for following Whyte's takeover last May. He claimed his position had been "undermined" through his association with Whyte.
Whyte's purchase included an undertaking to provide £5m of investment in the playing squad through his company, Rangers FC Group. The company also stated an "intention to invest" £20m on players by 2016. Whyte also had to provide £1.7m to fund capital expenditure in relation to improving kitchen and public address equipment at Ibrox.
He finally admitted this week that he sold off £24.4m of supporters' season tickets to partly fund the takeover with £18m used to pay off the club's debts to Lloyds Banking Group. His predecessor Sir David Murray required Whyte to show that he had £24.4m in working capital as a condition of the sale.
Mr Smith and Mr Russell lost their jobs as the administrators said the unpaid tax under Whyte's regime was expected to be £5m higher than first thought. They originally said unpaid PAYE and VAT worth around £9m was not handed over to HMRC, and was used to keep Rangers running, prompting the club's slide into administration.
The new tax liability, which has been built up since October, would take the total debt to the taxman to £14m. The club is already facing a tax bill of £49m, plus interest, if it loses the "big tax case".
It emerged last night the club was likely to lose any chance of European football next season. Rangers must meet a deadline of March 31 to lodge audited accounts and other financial statements in order to compete in Uefa competitions.
Supporters have pledged £6m to an internet campaign to help save the club, which was launched on Wednesday, saying they do not want Whyte involved in the club if any deal goes through.
Strathclyde Police chief constable Stephen House also warned he would not be able to provide policing for matches at Ibrox, unless it was paid for up front.
First Minister Alex Salmond said he hoped a way could be found for Rangers to meet its obligations to the taxpayer and that it stayed in business. Responding to a question by Tory MSP Murdo Fraser at Holyrood, Mr Salmond said: "It's a very serious situation for the club and the series of revelations in the last few
days have been very concerning."
Meanwhile, Mr Smith said: "I was brought in by Craig Whyte, but because his reputation has been damaged ... I feel my own position has been undermined by association.
"However, I would make the point that I was very frustrated in my job as I was unable to fulfil the job specification which was originally outlined for me.
"This was to control the major aspects of the football department outwith the first-team operations.
"These were to include recruitment, scouting, transfer negotiations and youth development. I wasn't in control of any of these activities despite constantly making it clear to Craig Whyte that this was to be my remit.
"I outlined my medium to long-term strategies for the club on numerous occasions but to no avail. There's no point in being a director of football unless you can control these areas so, in that respect, I'm totally comfortable with being made redundant."
Both Mr Smith and Mr Russell will stay on until the end of the month at the request of the administrators.
Decisions regarding staffing in all other departments will not be taken until next week.
Paul Clark, joint administrator, said: "Since our appointment as administrators, it has been essential to review the cost structure of the club's operations and make every effort to achieve efficiencies to help improve the trading position.
"As part of this programme, Ali Russell and Gordon Smith have agreed to leave the club."
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