“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.”