For the first time in the history of Rangers their accounts are unaudited.
A reasonable person might ask why this should be the case.
The business experts I have spoken to say that the most likely reason for this strange turn of events is that the club’s owner doesn’t want a “Going Concern Letter” attached to the audited accounts.
Reputable firms like Grant Thornton couldn’t sign off on accounts if they didn’t think it presented the entire picture.
If such a letter was attached to Rangers’ accounts then the company would be forced into “Quarterly Reporting.”
This would mean we wouldn’t be waiting for a year to see what the state of play was apropos the club’s finances.
With quarterly reporting, Rangers accounts- unlike Mr Whyte’s personal wealth- would no longer be off the radar.
Although I am told that the accounts released this week by Rangers are accurate, they don’t tell the entire story.
As ever in these matters the irrepressible Rangers Tax Case Blog gives more than the mainstream media.
Here RTC reveals not only the headline figures, but, crucially, details not released by Rangers.
The RTC numbers show that Whyte had not made good on his promises of working capital investment by 30th of June.
If Rangers were forced into quarterly reporting, the accounts would give us a view into Whyte’s handling of Rangers every three months. Almost certainly it shows that, despite assurances at the time of buying the club from Sir David Murray, the new owner had not injected £10 million of working capital.
This clipping from a Rangers internal memo in May 2011 published in the comments section of RTC indicate that the promised working capital was needed to pay the £2.8 million “wee tax bill.”
My understanding is that the old board effectively brokered a deal with HMRC promising that the £2.8 million tax bill would be made very shortly after Mr Whyte taking over at Edmiston drive.
What WAS paid was £500,000 out of the Rangers Season Ticket pot to fend off punitive action by the taxman.
This leaves £2.3 million outstanding plus penalties.
Business experts I have consulted have said don’t be surprised if Rangers decide to change their financial year very soon.
This will buy them time, perhaps another six months before having to have an AGM and publish fresh, audited accounts.