Whyte - Long time coming

The Scottish Premier League champions are set to go into administration after lodging the notice at the Court of Session in Edinburgh on Monday afternoon.

It is understood Rangers have five days in which to formally declare administrators have taken over the running of the club.

Gers are awaiting the verdict of a tax tribunal and could face a bill in the region of £49million should they lose their dispute with HM Revenue & Customs (HMRC).

"The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago."
Craig Whyte Quotes of the week

The HMRC case centres around the use of employee benefits trusts (EBTs) which were in place before Whyte took over from Sir David Murray last May.

Harsh reality

Whyte, who bought Murray's shares for £1 and pledged to pay off £18million of debt to Lloyds Banking Group, feels the club's current position has been "a long time coming".

And despite the prospect of an immediate 10-point penalty, and the likelihood of giving up on retaining the title, the owner is confident the course of action is the correct one.

He said: "It is extremely disappointing the club finds itself in this position but decisions have to be taken to safeguard the long-term survival and prosperity of the club both on and off the field.

"The harsh reality is that this moment has been a long time coming for Rangers and its roots lie in decisions taken many years ago.

"If we do not take action now the consequences and the risks to the club are too great.

"In addition to the HMRC issues, it has been abundantly clear to me the club faces serious structural and financial issues which will continue unless they are addressed.

No alternative

"There is no realistic or practical alternative to our approach as HMRC has made it plain to the club that should we be successful in the forthcoming tax tribunal decision, they will 'appeal, appeal and appeal again' the decision.

"This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC.

"Even if the club were to succeed in the tax tribunal, it would still face substantial liabilities. Zero liability will not happen.

"Whilst it appears that a consensual restructuring looks unlikely outside of a formal insolvency procedure, the above steps, if agreement cannot be reached with HMRC, will bring an end to the legacy threat of closure and will provide stability required to enable the required investment to be made into the future of the club.

"I can, however, reassure Rangers supporters that the club will continue and can emerge as a stronger and financially fitter organisation that will compete at the levels of competition our fans have come to expect."