The demise of Rangers Football Club s bad news for the whole of the Scottish Premier League and could signal a change of attitude among fans and owners everywhere in the never ending spiral of spending increasingly obscene amounts of money on players wages and transfer fees.
With the Ibrox club opting for administration and taking a route that could end up with liquidation, the tough stand taken by the HM Revenue and Customs is a warning to all clubs on both sides of the border that football is not immune to the financial crisis that is affecting just about every country in the world.
Administrators Paul Clark and David Whitehouse hope to make an announcement on the financial restructuring of Rangers in the next 24 hours. They took over the running of the club on Tuesday, after a dramatic attempt by HM Revenue and Customs to get a court-appointed insolvency expert in at Ibrox in their pursuit of £9m in unpaid tax.
The problem is the administrators need to reach agreement with 75% of the creditors by value if they are to succeed in reaching a creditors voluntary agreement to bring Rangers out of administration. And that means they will need the support of HMRC if they are going to get a CVA.
It’s been a dramatic fall of grace by Rangers who looked to have such a bright future when they won the first of three successive SPL titles in 2009.