Administration to claim biggest scalp in Rangers
SCOTTISH champions Rangers look set to this week become the biggest British club to plunge into administration.
The Glasgow outfit took legal steps yesterday to notify the courts of their intention, which would carry an instant 10-point penalty in the Scottish Premier League.
It follows months of speculation about the threat of administration and comes as the club wait for the outcome of a tax tribunal that could cost them £49m.
Rangers chairman Craig Whyte insisted it was not a foregone conclusion but called the move “the most practical way to safeguard the long term future of the club”.
Whyte bought the Ibrox side for £1 in May but has endured a controversial tenure, with former chairman Alastair Johnson last week citing widespread stakeholder concern over the use of future season ticket revenue as security.
Trading of their shares on the PLUS stock exchange was suspended last month. Whyte added that the club was earning £10m less than its £45m annual liabilities.
A 10-point penalty would leave Rangers 14 points behind SPL leaders Celtic but still nine points in front of third-placed Motherwell.
Meanwhile Portsmouth are set to go into administration for the second time in as many years. The Championship club faces a winding-up order over unpaid tax next week.