Rangers go bust - Chairman

By chick young
BBC Scotland Rangers a period of financial problems Rangers Chairman Alastair Johnston has admitted that the Club could defeat suffered.

The approval was in the course of the recent talks with would-be owner Craig Whyte and half-yearly figures indicates that the Club owed ￡ 29 m.

Johnston insists that, when published in the June annual figures show that decreased debt to some 22 million GBP.

But he nodded approvingly question, whether it be possible for the club out of business, when a decision on tax payments went strongly against them was.

"The reality is that, if the decision is bad, and the Club can not pay, it would be made a decision," said Johnston, who expected a decision on the purchase of the Club in the next few days.

"It is not clear where the responsibility lies." It could be his October or November before we find out.

"The situation is the sale does not hold, but it affected new financing and new investment."

"I have no idea of the sum for which we be held liable, but not Rangers much afford."

Results for the six months until 31 December show that the lot Rangers of creditors increased by the debt within the next year to almost ￡ 3. 5 m to ￡ 29 m, most of them assumed that due to Lloyds banking group.

The Club suffered a decline of in pre-tax profit of 13 m ￡ 9 million pounds, sales to fell to ￡ 4. 1 m to ￡ 33. 7 m and there was also a 4.9% decline in the number of season tickets sold, together with a reduction in the sponsorship income.

Johnston insists however, that figures show that finances are now in a much healthier state.

"Today's pay a snapshot", he said. "There are no bad numbers."

"Progress is good." "￡ 22 M of a realistic debt is round."

The genuine concern for Rangers is the Judement that you expect from her Majesty's revenue and customs on a tax issue relating to offshore payments to players and compensation limited trust the Murray group management.

Johnston conceded that "but HMRC ruling, the life for the would be much easier" and he admitted the investigation relating to offshore payments to players and compensation limited trust in his statement to the stock exchange of the Murray group management.

"I would like to stress that no allegations were proposing an illegal activity and tax vehicles of such committed a number of companies throughout the country," he said.

"We continue to vigorously contest HMRC's challenge to the taxation treatment of the trust and while still get reassuring opinion of tax, accounting and legal experts,."

Financial situation of the Club has also by a separate free was hit by the HMRC for ￡ 2. 8 m for activities in a player compensation scheme between 1999 and 2003.

Everything happens as Rangers deep in talks with Whyte, the hope is, take over the property of Sir David Murray.

"This is not a one-way street," said Johnston. "He is still enthusiastic about dealing with the issue and we are looking for his credentials."

"I want to force a mechanism to force him to do what he says, he will do future investment in the Club."

"Agreement has with the Bank and with David Murray nothing to do with Rangers." I would like to representations made by his ability, what he says, he will do to finance.

"Craig has the Club, to understand the position and the expectations of the fans."

"It is very simple, about ￡ 25 m investment, but there must be a mechanism forces."

"We need to get you in every contract of sale." "I admit that this is very unusual."

Johnston also, showed that he asked Manager Walter Smith and managing director Martin Bain Whyte give a briefing on the cash flow of the Club under the point of view of the future needs of players and the last week has been done.

The Club had banker Rangers Chairman in his statement to the stock exchange to make Smith's job as a necessary criticized.

"While we thank for the support of the Lloyds Bank Group by the Bank of Scotland in expand our credit arrangement and the progress in the development of a template for the cooperation in the realization certain provisions imposed on the Club still gef?hrdenunserer opinion", Management, the ability to carry out his role with maximum efficiency, "Johnston said in his statement."

Player costs remain in fact, despite Smith in his movements in the transfer market is limited to the same thanks to the addition of Nikica Jelavic, Vladimir Weiss and James Beattie.

The latest figures also show that Rangers Middlesbrough as last year for Barry Ferguson to Birmingham City and Charlie Adam after Blackpool won more from the sale of Danny Wilson after Liverpool and Kevin Thomson,.

"Net operating expenses at ￡ 21. 1 m costs offset by higher maintenance expenditure and provisions for doubtful debts, are in line with last year, with basic salary costs at similar levels and reduced day" said Johnston.

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