Clubs have crucial say in Rangers' future as SPL prepare to take disciplinary action

Sports writer

Tuesday 19 June 2012

An investigation by the Scottish Premier League has concluded that Rangers have a case to answer over the club's use of Employee Benefit Trusts.

All 12 SPL clubs will vote on the application to transfer the oldco's league share on July 4

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Richard Wilson

Disciplinary proceedings will begin once the status of the newco, The Rangers Football Club, has been established, with all 12 SPL clubs voting on the application to transfer the oldco's league share on July 4.

The SPL's investigation, by the law firm Harper McLeod, was delayed for almost three months after Duff & Phelps, Rangers' administrators, failed to supply all the relevant paperwork. However, the SPL board meeting at Hampden yesterday concluded that further action is justified. The SPL will now await the outcome of the vote to transfer the league share before initiating disciplinary proceedings, with the likelihood that other clubs would make it clear that any vote in favour would only be granted if Charles Green, the Rangers chief executive, agreed to a number of undertakings, including any sanctions applicable for rule breaches made by the oldco."The SPL Board heard a report from its solicitors following the investigation into payments to, or for the benefit of, players allegedly made by Rangers FC outside of contract," said the SPL in a statement. "The delay in concluding the investigation was caused by an initial lack of co-operation from Rangers FC. The investigation has now been completed and, in the view of the SPL, there is a prima facie case to answer in respect of its rules. Disciplinary charges will be brought when the future status of Rangers FC is clarified and prior to the start of season 2012/13."The Rangers Football Club made their official request to transfer the league share yesterday, and the vote on July 4 requires an 8-4 majority, with oldco Rangers able to vote. The issue continues to divide all SPL clubs, with supporters applying pressure on their boards to vote against the newco, despite the financial consequences, with the television deal and other commercial contracts being diminished."The newco issue is often portrayed as a straight choice between preserving sporting integrity and clubs accepting a reduction in gate money together with potentially a significant amount of commercial revenue," said a Motherwell statement. "In reality it is far more complex than that. We are fully aware that an overwhelming majority of our fans and most others are totally opposed to newco being allowed immediately back into the SPL."The consequences of five or more clubs voting no to newco do also need to be fully taken into account. In addition to lower gate receipts, we are likely to lose an as yet un-quantified amount of commercial revenue with a specific risk around TV payments. "The lack of clarity on what the actual impact of newco not playing in the SPL will have on these revenues is a major problem for the board."Green has begun the process of negotiating with other SPL chairmen, although the future ownership of the club remains unclear. The consortium led by Walter Smith, Jim McColl and Douglas Park formally submitted a £6m offer to Zeus Capital, owners of The Rangers Football Club, yesterday, while Dave King, the former Rangers director, held a meeting with Green and said afterwards that he wasn't unhappy with the talks. Earlier yesterday morning, he had strong words to say about the club's owners."My understanding from Mr Green is that he sees this as being a financial opportunity," said King, who has not ruled out financially backing Smith's consortium. "I really don't believe Rangers represents a financial opportunity for anyone other than an asset stripper. There is a structured financial deficit and unless the club gets access to funders who are willing to put money in on a non-commercial basis, for at least three years, then I don't think the club will go forward."If Mr Green does come up with the money, then I'll be one of the first to support him. We have to avoid another situation where essentially someone has come in and acquired the club and is going to use the fans' money."

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Clubs have crucial say in Rangers' future as SPL prepare to take disciplinary action

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