Yesterday, in rather dramatic circumstances, Rangers were forced to live within their means.
The Administrators have imposed reality on Scotland’s establishment club after a generation of financial delinquency.
When they were appointed Duff & Phelps said they would have to restructure the company so that income was greater than expenditure.
This is a revolutionary new idea down Ibrox way.
It is, of course, all too late.
The gorilla that troubled Alistair Johnston last April is still in the room.
I have stated here repeatedly that, given what I know of the evidence presented to the First Tier Tax Tribunal, that HMRC will win the “Big Tax Case” (BTC) and I am confident that Hector will push for immediate payment.
The Administrators have bought themselves some time yesterday and there is much to do.
They have to challenge the validity of the Floating charge, and they also have to attempt to extricate Rangers from the Ticketus deal.
That one maybe complicated by the fact that the Octopus subsidiary appears to be backing “Blue knight” Paul Murray.
Mr Murray stated when he was on the Rangers board that it would be folly for anyone to buy the club while the BTC was outstanding.
I have not seen any objective evidence that Mr Murray has wealth off the radar.
Therefore, he has to raise the finance.
This is exactly the situation that Mr Whyte was in last year.
There is one interested party who COULD write a cheque for £100 million, and ipso facto clear off Rangers debts, and that person is Brian Kennedy.
The question he would have to ask himself is whether or not he wants to lose that money, because there is simply no chance he would get it back, let alone make a profit on that £100 million.
His time at Stockport County didn’t end well, and the Ibrox club is a much larger money pit.
Rangers are in Administration Mr Kennedy, that’s a clue.
Of course, the massive debts that the club have are only part of the problem.
HMRC gorilla has a new primate playmate.
The second contract allegation made by ex-Rangers director Hugh Adam threatens to have massive ramifications for not just the club, but for the governing bodies of the game in Scotland.
There is also the regular remittance to HMRC from last month’s payroll which is due on Friday March 16th.
Unlike the rather relaxed regime under Mr Whyte the Administrators are now personally liable if those monies are not paid.
Moreover, yesterday’s deal does not repay the £16 million outstanding from last May.
Finally, there is financial sanity at Scotland’s establishment club, but it is, of course, all much too late.
The wrecking ball of the Big Tax Case is heading their way and the company cannot trade out of the position they are in.
Anyone saying that they “know” that HMRC will take a haircut for these millions or allow Rangers decades to repay is either lying or they have been duped by some PR chappie.
Given that these same people described Mr Whyte as a “billionaire” then I’ll leave you, dear reader, to work out which.
Yesterday was a stay of execution.
They were taken off the gurney at the last moment,but Rangers are still on death row.
The mainstream media are spinning this as a pardon.
Liquidation day is coming.