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Official: Rangers go into administration and face immediate 10-point deduction
The Scottish giants appoint Duff and Phelps as administrators and have theoretically ruled themselves out of the title race with the compulsory penalty.
Feb 14, 2012 11:07:00 AM
Rangers have officially gone into administration, it was announced on Tuesday.
The Glasgow club has been in financial difficulty for some months now, and was given permission by the Edinburgh Court of Session to appoint its own administrators by 3:30 p.m. or else face an appointment made by the taxman.
HM Revenue and Customs (HMRC) was bidding to make its own appointment, but was ultimately unsuccessful in its bid as London-based firm Duff and Phelps was officially appointed at 2:50 p.m.
The firm will now take charge of the day-to-day running of the club as it bids to battle its mounting debt problems.
The SPL champions first gave notice of their intention to enter administration on Monday, as they face a tax bill which could rise to 75 million pounds.
Shortly thereafter, HMRC countered the action by the Ibrox club and issued its own notice with the intention of making an appointment to settle the outstanding bill.
Earlier on Tuesday, the situation escalated when Rangers announced they would be willing to accept a 10-point deduction - which would likely rule them out of the title race - if they were given permission to choose their own administrator.
Despite further contest from the tax authorities, the court ruled in favor of Ally McCoist's side and set the club a deadline of 3:30 p.m. to make the appointment.
The news is likely to send shockwaves through Scottish football, as the long-term future of the famous club becomes increasingly uncertain.
Former manager Graeme Souness described the situation as a "tragedy", while owner Craig Whyte met with the players at the training ground on Monday to hold frank discussions over the current turmoil.
However, Whyte was insistent that going in to administration is the only way to drag the club out of the financial quagmire, telling Sky Sports News: "This was the best way to take the club forward and end the uncertainty that's surrounding Rangers at the moment.
"What we've done today is the start of a road to recovery. Rangers will always be around, Rangers will always be here at Ibrox and this is the start of the healing process.
"We will get over this and we will come out fighting and come out stronger, there's no question about that."
The Glasgow club has been in financial difficulty for some months now, and was given permission by the Edinburgh Court of Session to appoint its own administrators by 3:30 p.m. or else face an appointment made by the taxman.
HM Revenue and Customs (HMRC) was bidding to make its own appointment, but was ultimately unsuccessful in its bid as London-based firm Duff and Phelps was officially appointed at 2:50 p.m.
The firm will now take charge of the day-to-day running of the club as it bids to battle its mounting debt problems.
The SPL champions first gave notice of their intention to enter administration on Monday, as they face a tax bill which could rise to 75 million pounds.
Shortly thereafter, HMRC countered the action by the Ibrox club and issued its own notice with the intention of making an appointment to settle the outstanding bill.
Earlier on Tuesday, the situation escalated when Rangers announced they would be willing to accept a 10-point deduction - which would likely rule them out of the title race - if they were given permission to choose their own administrator.
Despite further contest from the tax authorities, the court ruled in favor of Ally McCoist's side and set the club a deadline of 3:30 p.m. to make the appointment.
The news is likely to send shockwaves through Scottish football, as the long-term future of the famous club becomes increasingly uncertain.
Former manager Graeme Souness described the situation as a "tragedy", while owner Craig Whyte met with the players at the training ground on Monday to hold frank discussions over the current turmoil.
However, Whyte was insistent that going in to administration is the only way to drag the club out of the financial quagmire, telling Sky Sports News: "This was the best way to take the club forward and end the uncertainty that's surrounding Rangers at the moment.
"What we've done today is the start of a road to recovery. Rangers will always be around, Rangers will always be here at Ibrox and this is the start of the healing process.
"We will get over this and we will come out fighting and come out stronger, there's no question about that."
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