“Moral hazard” is an important concept.
It is simple enough to grasp. If people are allowed to behave knowing that no consequence will befall on them then they are likely to behave differently than if they knew they would be answerable for their actions.
Subsequently you get more of the consequence free behaviour.
If the punishment is SO minimal then there is a “Moral hazard”.
Imagine if drink driving was a £10 on the spot fine and on your way.
Do you think that more people would drink and drive?
Sadly that is exactly what would happen.
Without the automatic forfeiture of the driving licence and the danger of imprisonment people would revert to type and behave selfishly and dangerously.
That is why we have courts to curtail the conduct of the crooked timber of humanity.
Rangers’ are seeking debt forgiveness from the SPL and the SFA and they’re about to get it.
The establishment club are not presenting themselves as a broken African country.
There is a sense of entitlement.
That is to be expected given the culture and history of the club.
However what is of concern is the stance of Celtic football club to this behind closed doors.
My sources in Celtic tell me that the highest echelons of the club have given their tacit approval to a deal that will see the Ibrox club escape their years of, err, “tax efficiency” with a slap on the wrist.
Despite the lips service from the SFA to Platini’s campaign against “financial doping” they will, I am told issue a licence to the new Rangers if they decide to “phoenix” out of their situation should the “big tax bill” hit.
The SPL will impose a ten point penalty and leave it at that.
This is a form of debt forgiveness that is unforgivable.
What would be an appropriate punishment would be a multi season penalty.
Instead the Scottish football authorities are about to rubber stamp the prolificacy of the tax free Tore Andre Flo period.
The Advocaat years saw spending on a lavish scale.
No one could keep up with a club that could splash £12 million on a single player.
This was Championship Manager with the cheat codes.
Now the slate is about to be wiped clean.
Yes there will be a 10 point penalty, but that is all there will be and Celtic at the highest level are ok with this.
Celtic fans deserve the board to be fighting their corner on this matter.
Rangers aren’t “too big to fail”, but they do appear to be too big to be appropriately punished by the Scottish authorities and Celtic have nodded their approval.
Finally I am starting to believe in the “Old Firm.”
MWD
Phil
If what you say turns out to be the case I will not return to Celtic Park until Dermott Desmond and his mafia in the boardroom are gone.
A complicit Celtic boardroom is unforgivable.
It will be up there with the biggest decision I have ever had to make but giving up Celtic or bending over and being excavated?
May 3, 2012 at 10:52 pm
Delbhoy
If They go to the wall and are allowed to escape with something like a 10 point penalty then I’m done with professional football. I’ll not spend another penny on tickets or merchandise.
February 3, 2012 at 3:30 pm
tizzer
if rangers go to the wall does the the television deal become null and void? if so, does this strengthen or weaken celtic’s negotiating position on a new deal? could this be a factor in celtic giving rangers a “bye” in terms of sneaking back into the spl?
January 23, 2012 at 10:57 pm
cooncil boy
This was always going to happen. How ironic that Celtic will be the losers in this judging by the amount of fags that will see this as the last straw. I count myself among them.
Disgusted with the Celtic board for their acquiescence.
November 8, 2011 at 1:39 pm
BombJack
If this is how Celtic behind the scenes are operating, it’s a scandal. There’s no other word for it. In my opinion of course…
November 8, 2011 at 1:30 pm
symptomless
So if they should “Phoenix” out of this they’ll still be banned from Europe for 3 years, right?
The SFA can’t issue a license to a company younger than 3 years old, despite how much they would want to.
Am I correct in thinking this?
November 8, 2011 at 1:29 pm
Sean
If this is actually the case and there is sufficient evidence, i will no longer support Glasgow Celtic, quite a shocking allegation
November 8, 2011 at 1:18 pm
brian boyle
if the board sanction this ,im finished with it, it will break my heart but no more , its totally out of order, do they not remember the “for every £5 spent”they would have buried us given half a chance,
November 8, 2011 at 1:18 pm
franag dunleavy
time for the fans to BHOYCOTT the SPL
November 8, 2011 at 1:17 pm
E Anderson
If there is the slightest bit of truth in this then I will most certainly be giving up my 2 season tickets, enough is enough. And here was me thinking that maybe, just maybe, there might now be a level playing field.
November 8, 2011 at 1:17 pm
seamus campbell
Phil, I can take my team getting beaten, i can take loss of form, poor signings; even not winning anything for a while and I’ll still go back because I love my club.
If things pan out as you’re suggesting then I’ll walk away from Celtic for ever. This would not be the actions of my Celtic.
My Celtic stood tall against referee incompetency and fought hard to maintain the integrity of the game during the season extension scandal.(What about integrity now?)
We’ve taken some shit as a club and a support over the years and now we plan to extend a helping hand to the “people” who would do us harm! I can’t believe it!
I’ve had a season ticket for around seventeen years, and whilst a big part of my life; I will give it up the minute we are involved in any dodgy deals to assist the tax dodgers.
Celtic could end up worse off than rangers were this decision to go ahead because from the mood of the support I would not be the only one to walk away.
rangers would have their superiority status confirmed and go on as if nothing has happened while Celtic would see a fairly large drop off in season ticket sales and a split among the support.
Dreadful decision if it goes ahead.
November 8, 2011 at 1:16 pm
Harald Flatpack
Phil , should the articles or association or whatever binds the SPL together not state what occurs when a member club finds itself in this position. Are the SPL following the rules, bending the rules or ignoring the rules?
November 8, 2011 at 1:13 pm
Colin FC
Really can’t believe that the Celtic board would allow this Phil. It would be financial suicide as tens of thousands of fans would stop their season tickets (myself included) and leave Rangers in a stronger position than ever as our fan base would be obliterated. The Celtic fans would never accept this from the board.
November 8, 2011 at 1:12 pm
John
I have a horrible feeling that you may right.
At the very least our board should be fighting to ensure that Rangers are treated no differently to other clubs who have gone into administration – after all there is precedent.
If liquidation follows then surely they have to incur the same penalties as previous clubs who have “gone bust”.
If Rangers get “special” treatment then I think it signals the end for Scottish football.
November 8, 2011 at 1:12 pm
MWD
Phil
If Celtic back any plan to help resurrect Rangers allowing them to forego serious punishment for their cheating then they will not be my club anymore. I do not support the Old Firm. This would be collusion and a step too far in my book. I would instant hand back my son and my own season tickets, request a refund and never darken the Old Firms door again. This would be a reprehensible step for Dermott Desmond to take (let’s face it, he will decide). He could stick mt tickets were the sun don’t shine.
Each and every Celtic supporter needs to make their views known to our PLC board with regards our position on this.
November 8, 2011 at 1:11 pm
SheepySheepington
Phil,
Thanks for all the hard work you’ve done over the past year to expose the blase treachery that our own footballing authorities have been complicit in. Allowing one football club to establish a position of dominance which robbed many SPL clubs (mine included, Aberdeen) of trophies that they had earned through hard work and a sense of honesty within the sport.
However, if I find out that my club has had any part in this ridiculous, short-termist decision then i have no option but to part company with my support.
I’m sure that i’m not alone here, as I suspect many thousands of Celtic fans will be furious about this decision.
November 8, 2011 at 1:10 pm
franag dunleavy
an absolute disgrace to celtic fans and the fans who spent money buying shares in the club,Lawwell and company should bury their heads in the sand,Rangers MUST be punished to the full letter of the law at Home & at UEFA for their tax indiscretions should they be found guilty as charged, it is time for All Celtic fans to make the proper PROTESTATIONS to celtic board immediately,the celtic supporters associations must let their club hierarchy be aware of their anger in the strongest possible terms, if the board at celtic park turn a blind eye to this then I for one will sell my shares and dispose of ”MY SCARVES & SHIRTS IN THE USUAL & CUSTOMARY MANNER”
November 8, 2011 at 1:10 pm
Barrie
“This was Championship Manager with the cheat codes” brilliant line!
November 8, 2011 at 1:10 pm
Ronan
Phil, if this is true it is a copmplete and utter disgrace, but not even remotely surprising.
I have no faith in the Board of Celtic FC looking out for the best interest of the club or its suporters. This is a slap in the face for a club that followed the laws of the game, the laws of the land and suffered on the pitch for it.
November 8, 2011 at 1:09 pm
dirtymac
I hope your source is wrong Phil; I sincerely hope the orcs are not allowed to wriggle out of this.
Even were there to be some beneficial aspect to us allowing them to wriggle, I’d hope we don’t.
They’ve had their cake, their succulent lamb and fine wines whilst the rest of us had to scrimp by with what we could earn – let them die as an object lesson in the follies of the gluttony of mismanagement.
November 8, 2011 at 1:02 pm
Gerry
Phil, a good article and a worrying article to boot. It’s been my feeling for a few years that the poers that be at Celtic place a great importance on the health of Rangers when considering their own future to the extent that they will not seek to gain massive advantage should the opportunities present themselves.
In my opinion, those opportunities have been squandered scandalously in recent years and this article if borne out by future events would only serve as further confirmation of the Celtic hierarchys indifference towards their own fans.
November 8, 2011 at 1:01 pm
Franko
Phil, having read your posts for a long time now I have no reason to doubt the accuracy, on this basis I am absolutely disgusted that the celtic management would go along with letting THEM off so lightly.
November 8, 2011 at 12:59 pm
oisin71
Rangers Debt Forgiveness sanctioned by Celtic FC is UNFORGIVING
November 8, 2011 at 12:59 pm
Dermot
What about precedent though Phil ? If the SPL, SFA and Celtic all agree to this, what’s to happen in the future to clubs who do not pay their debts. Surely its a charter to go ahead and do just that ? I’m not at all shock that Celtic are going to be complicit in letting Rangers off the hook.If the shoe was on the other foot they’d be giving it to us in the head!
November 8, 2011 at 12:59 pm
Tommy
I really admire you for your work Phil.
Perhaps you may be able to spend some time on the goings on behind the scenes at Celtic Park?
November 8, 2011 at 12:58 pm
Kevin D
Sorry to say it Phil but as Celtic can’t see away out of the SPL then they “need” to pay against Rangers FC or NewCoRangers FC – money talks. Agree that the least Celtic should be asking for is a multi-season penalty of perhaps 3-5 years to compensate Celtic for titles that they should have legitimately won!
November 8, 2011 at 12:57 pm
Joe Paterson
Phil
Honestly for the first time since starting to read your blog I hope that you are wide of the mark with this one, if not and this comes to pass I will not set foor in Celtic Park till the present incumbents on the Board are on their way, this is morally repugnant, it is corporate cheating on a grand scale aided and abetted by their finacial partners within celtic FC
November 8, 2011 at 12:56 pm
Sean McGinley
If this is true it is a complete disgrace but hardly surprising by our board. Do they really think we need Rangers, in whatever form, to make us a successful football club!
In my opinion this is possibly the break we need to prosper and finally lose that O** F*** tag!
November 8, 2011 at 12:56 pm
dave
Was at the game on Sunday (I go to all the games) and as per , we , the fans have been discussing this for months.
If what you are saying is true regarding the higher echelons at celtic park then there will be 1 almighty backlash from the fans.
I dont know 1 fan who will renew there season books ? I dont know 1 fan who will go to away games again ?
The financial implecations that this will bring will be the catastrophic implosion that will bring the whole of scottish football to its knees.
To blatantly cheat the public , other clubs who have been in the same position , and the fans will 100% be the end of the game in this country.
November 8, 2011 at 12:53 pm
Chris
If this is true then Celtic won’t be getting my season ticket money again
November 8, 2011 at 12:53 pm