RANGERS' players have been advised that they can leave the club for free if it becomes a "newco" despite administrators Duff & Phelps telling them their contracts would transfer automatically.
Allan McGregor, Steven Naismith, Steven Davis and other players were repeatedly told their existing contracts would transfer to the "newco" proposed by Bill Miller, who was yesterday given preferred bidder status. However, that is contrary to what they have been told by their union, PFA Scotland, who are adamant the separation of Rangers into "old" and "new" entities would mean the contracts are no longer binding so, if they chose, the players could leave without a transfer fee.
Herald Sport understands some players are unhappy they have not been properly informed about Miller's plans and the union is angry that its members have been given contradictory advice about their contractual status.
A dispute would cause enormous problems – especially if the 12-month transfer embargo is not lifted after appeal – and Miller is expected to talk to the players soon in attempt to secure their support. It is understood he has been aware of the difference of opinion for some time, but both sides have insisted their position is the correct one.
The transfer of the players' registrations is a condition of Miller's bid and it could blow up into a massive issue if one player, or more, decided to exploit his perceived right to leave without a fee. Those who had clauses inserted in their contracts allowing them to leave for reduced fees may also seek to negotiate those terms, and could agree to have them removed in return for reimbursement of the money they lost accepting pay cuts.
Miller and Duff & Phelps have repeatedly stressed that the £11.2m takeover bid does not involve liquidation but the authorities will effectively treat it that way, which could bring accompanying penalties for competing as a new club. Rangers will not be eligible to play in Europe for the next three seasons. On Monday the Scottish Premier League will consider what sanctions, if any, to impose on clubs that go into administration or try to enter the league as a "newco". As things stand any proposed punishments would not take effect until the day after the end of this season, so if Miller got his "newco" started before then it could be voted into the SPL over the summer without punishment.
The American is reported to be "comfortable" with the football sanctions a "newco" Rangers would suffer, though that may depend on whether or not he believes the current SFA transfer embargo will be lifted. The SPL could also impose further penalties if the club are found guilty of making undisclosed payments via Employee Benefit Trusts. An investigation into those claims is in its early stages.
The SPL issued a statement: "The Scottish Premier League notes preferred bidder status has been granted to Bill Miller. The SPL will now continue discussions with Mr Miller and his team. No further comment will be made at this time."
The SFA said: "It is our intention to enter into detailed discussions with Mr Miller to clarify his position and to establish his strategy to ensure a sustainable future for the club."
The Blue Knights, meanwhile, issued a statement in which they warned about the consequences of three years without European football. "We believe the complexities of a 'newco' process should not be underestimated and the likely loss of European football may carry longer term financial consequences to Rangers Football Club and its many supporters. Under our CVA [Company Voluntary Arrangement] proposed transaction, these issues could have been addressed more easily."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article