While the media frenzy swirls around the conduct of Craig Whyte during his time as owner of Rangers, a far more significant story is being missed by the Scottish media.
In the furore over Ticketus and the unpaid taxes since last May, the wider significance of the “big tax case” on the governance of the Scottish game has not been fully analysed.
Let us assume that the First Tier Tribunal finds in favour of HMRC and against Rangers.
That will mean that Rangers, in the first decade of the millennium, operated an illegal tax evasion scam.
During this time, directors of the Ibrox club signed off on accounts stating that everything was ok, and submitted annual club license applications to the SFA and to permit their participation in Scottish and European football.
Moreover if we look at who was doing the signing in the boardroom at Edmiston drive then we find people simultaneously holding key positions on both the SFA and the SPL.
For the first half, of the “EBT decade” Campbell Ogilvie was a Rangers director and company secretary and simultaneously treasurer of the SFA.
Martin Bain, the Rangers CEO, was a director on the board of the SPL in 2008.
John McClelland a founding director of the SPL in 1997 until 2008 (when he was replaced by Bain) was executive Chairman of Rangers from 2002 until 2005 and only recently resigned from the board.
So here are three men, Rangers directors during the time when Rangers were running the Employee Benefit Trust scheme that has exposed the club to a potential bill for unpaid taxes, interest payments and penalties that could top £50million.
These three splendid fellows also, during that time, occupied senior positions on the ruling bodies of the game in Scotland.
Wearing their SPL and SFA hats it was incumbent upon them to make sure that ALL clubs in Scotland abided by the laws of the game.
If we look at the current rules then if these laws were in operation during the “EBT decade”, then Bain, McClelland, and Ogilvie may have a little explaining to do.
Given what we know about how Rangers are alleged by HMRC to have operated the EBTs then consider the following:
SFA Articles as previously advised, PLUS rule 2.2.1 of the Registration Handbook.
Rule 2.2.1
Unless lodged in accordance with Procedures Rule 2.13 a Non-Recreational (professional) Contract Player Registration Form will not be valid unless it is accompanied by the contract entered into between the club concerned and the player stating all the terms and conditions in conformity with the Procedures Rule 4.
Also, from the SPL Rules:
Rule D1.2
An application for a Player to be registered or to change Status must be made, in the case of Professional Registration, by submitting to the Secretary a fully completed and executed Contract of Service for the Player concerned.
Rule D1.13
A Club must, as a condition of Registration and for a Player to be eligible to play in Official Matches, deliver the executed originals of all Contracts of Service and amendments and/or extensions to
Contracts of Service and all other agreements providing for payment, other than for reimbursement of expenses actually incurred, between that Club and Player, to the Secretary, within fourteen days of such Contract of Service or other agreement being entered into, amended and/or, as the case may be, extended.
Rule D 9.3
No Player may receive any payment of any description from or on behalf of a Club in respect of that Player’s participation in Association Football or in an activity connected with Association Football, other than in reimbursement of expenses actually incurred or to be actually incurred in playing or training for that Club, unless such payment is made in accordance with a Contract of Service between that Club and the Player concerned.
A3.1
In all matters and transactions relating to the league and company each club shall behave towards each other club and company with the utmost good faith.
If the Rangers directors signed off on accounts and knowingly failed to disclose to their director colleagues at SFA and SPL that Rangers had invalidly registered players while they were holding senior positions on the governing bodies of the game in Scotland, then they will have been in breach of their duty to act in utmost good faith.
They will also have breached their fiduciary duties to these governing bodies and their members.
Did Rangers, by virtue of their alleged failure to lodge full and complete contracts in the form prescribed by FIFA, field invalidly registered players throughout the last decade?
Did these Rangers directors, as formal directors of the SFA and SPL, in failing to disclose potential breaches of player registration rules, conspire to deceive members of these governing bodies?
These questions have to be asked by the Scottish media, unless they are willing to wait until they are mere spectators in a UEFA probe into the governance of the game in Scotland.
It will be interesting to see if the sports desks in Glasgow go after this story with the same ferocity as they have been pursuing Craig Whyte since Scotland’s establishment club went into Administration two weeks ago.
Kevin Connolly
Great work Phil.
Every tax year a company director/secretary must sign a company’s P35 Return confirming the pay, tax, employers and employees NIC contributions for the year up to 5th April.
Now, I would suspect that Rangers were not paying ALL of the players wages through EBTs. In order to produce an annual P60 and to take advantage of personal allowances and lower tax band rates, NIC exemptions etc, I suspect that Rangers would have been been paying a relatively modest amount (lets say £1,000 per week)through normal PAYE arrangements. Which would mean that the balance would be paid through these EBTs.
Its clear cut that these EBT payments were therefore paid in respect of contractural obligations to the players, which makes them totally inappropriate for their beneficial tax treatment.
Which in turn means that whoever was signing the P35 Returns on behalf of Rangers FC were deliberately and systematically misleading the Inland Revenue.
Whoever has their fingerprints on that P35 Return (and it MUST be an authorised person, not just Molly in Accounts) could be in for a world of pain.
Its one thing for Rangers to claim that they acted in “good faith” – but that line is only for public consumption.
The reality is that those P35 Returns will prove that they were deliberately hiding contractural payments to the players. Clearly for fraudulent purposes.
The fact that these Rangers bigwigs also wore SPL hats at the same time makes it even more clear cut. This was systemic fraud.
This honorary individuals were being paid to be poachers and gamekeepers all the same time. As it turns out, they were ignoring their legal obligations to both Rangers FC and the other clubs in the SPL.
All that remains Phil, is to find out who the guilty parties are. And I can think of no better man than you! Crack on Sir!
March 2, 2012 at 11:23 am
Gerry Carty
How long will it take before there is a rush of people wanting to transfer money from various bank accounts in britain to various tax havens around the world ?
Maybe the same people are aware that proceedings might/will follow concerning these individuals once the tax case is processed . Then, it would be every man for himself .
February 28, 2012 at 8:47 pm
Edward McCandless
Phil you have just blown your last chance
of editor of the daily record,
February 27, 2012 at 9:38 pm
Rob
Phil, I don’t think this story is being missed – more like avoided – due to the possible consequences
February 27, 2012 at 8:28 pm
Bryan McGinley
Good piece Phil.
If it comes to light that Rangers players’ contracts have not been disclosed to SFA in full or have been turned a blind eye to by SFA, therefore the players not being properly registered then think of FC SION. Unregistered players = matches forfeited = results reversed = no points = NO LEAGUE TITLES, NO SCOTTISH CUPS, NO LEAGUE CUPS. If found that players were registered falsely then titles and trophies MUST be stripped.
February 27, 2012 at 4:15 pm
No Rangers = One Scotland
Very insightful article and good to see names being named and lights being shone. Exactly how many more of these EBT blood brothers are there?
The SFA has announed an ‘independent’ investigation into Craig Whyte. But it’s the previous directors who have racked up this potential tax bill. Surely any credible SFA investigation has to seriously question the conducts of the 3 gentlemen mentioned in your article, as well as David Murray. Did Murray and lloyds sell Rangers to a man who they knew had been banned as a company director?
And who is going to independently investigate the SFA?
February 27, 2012 at 3:07 pm
Sean Connolly
Regarding Rule D9.3 which you mention above (payment must be either already incurred expenses or under terms of contract) – for this rule to not be breached then surely Rangers must admit guilt in the tax case?
EBTs are designed for non-contractual payments, so regardless of the outcome of the tax tribunal, they must be guilty of either tax evasion or infraction of Rule D9.3.
Surely it’s implicit that they cannot be innocent on both counts? Or am I missing something?
February 27, 2012 at 2:42 pm
tambo1988
well done phil this has got to be looked into as rules have clearly been broken,but i fear another cover up here surely oligive has to go as there is clearly a conflict of intrest here,this corrupt club are a total disgrace to the supporters of every club and i include the decent supporters of rangers were some do exist while hopefully that club will cease to exist,for the good of scottish football lets hope this is the case as ive said before a cover up here will send out the wrong message to everyone that loves the game that is football so please lets all hope that the sfa do what is only right and find them guilty as charged and send them packing into the 3rd division i for one wont be holding my breath keep up the good work phil
February 27, 2012 at 12:45 pm
joe
Hi Phil I am a first time poster but I have been reading your blog avidly for ages.I could not top any of the above comments I just want to tell you how great a journalist you are and how informative this has all been you have put the mainstream people as I cannot bring myself to call them journalists to shame. Fantastic work from what the other side call a paranoid fenian rangers hater.
I could not possibly thank you enought.
February 27, 2012 at 12:29 pm
George Collins
That’s only if the contracts aren’t legal. I suppose they could argue that they are legal, in that the bonuses actually amount to part of the contract, but that’s the one thing that admits guilt on their part.
February 27, 2012 at 11:38 am
Ralf
To be honest it didnt bother me what went on behind the scenes, all I know is the Brian Laudrup and top players lit up the game, and raised the profile of the scottish game, and lets be honest does anyone really know what deals are going on behind the scenes at any teams to get players to sign.
February 27, 2012 at 10:32 am
RPM
Once the dust has settled and Rangers are found guilty, I would assume it won’t be only Celtic who will be taking Rangers to task over lost revenues? If a newco is eventually formed out of the corrupt ashes of Ibrokes, every director from the other SPL clubs would have a duty to their fans to vote against Rangers simply walking back into the SPL and taking there place at the top table!! Supporters up and down the country will be watching what developed’s here, these same supporters will not sit back and let the board of directors of their clubs simply vote a club “who have disgraced Scottish Football” back in as easily and some might think they will.
February 27, 2012 at 10:06 am
Dumped_by_Phil_for_asking_a_valid_question
Would like to say “well done Phil”! but Tony McKelvie gets my vote for reporting it 1st.
I take it most of your followers missed it? ah well…..
February 27, 2012 at 10:03 am
Phil Mac Giolla Bhain
Tony’s call in to “Your Call” set me off on this.
Credit where it is due for sure.
February 27, 2012 at 10:19 am
Tim
Great read again Phil. We await the outcome of the ‘BIG’case. If they are found guilty of cheating then Celtic should have their lawyers all over the fine details of every document they can get their hands on!! With regards to the MSM,they are pathetic.Their handling of the full thing is Laughable!!! Keep up the good work Phil
February 27, 2012 at 9:51 am
Rod
I wounder how much Mr Hate..ly made in his time.
February 27, 2012 at 9:30 am
john hughes
keep up the good work phil,only time will tell if justice can be done.
February 27, 2012 at 9:23 am
john
Great work but….. do you think the red tops will pay any heed to it ? Sadly i think not …to EUROPE with it Phil .
February 27, 2012 at 9:14 am
Jim Gallagher
If Rangers were operating illegally, then their participation in European competitions was illegal and the money they got from UEFA was gained under false pretences. Surely they would be entitled to their money back. How much did Rangers get from UEFA during the EBT year. It could dwarf the Big Tax Bill
February 27, 2012 at 9:02 am
wynnvegas
Hi Phil,
What is the correlation between the FTT(T) and this necessary investigation? Isn’t there is a simple progression to be followed with reference to the second contracts that has nothing to do with the EBT piece – i.e. if they:
a) exist; and
b) were not disclosed to the SPL/SFA as required
then every result where such contracts were in place and even one of the players in receipt of such contracts should be retrospectively awarded as a 3-0 defeat (how that affects requisite relegations, redistribution of honours and, importantly, the illegally obtained champions league monies over all that time is a massive mess for someone to sort out at the back end).
Of course, if the FTT(T) is needed to prove that these were employment contracts in reality, then fair enough. It strikes me that the existence of such documents should be enough to force (and they’ll clearly need forcing) the SPL/SFA and, in all likelihood, UEFA to investigate and act.
February 27, 2012 at 8:41 am
tambutnotbam
Perhaps we have the best evidence ever to prove that the SFA the SPL and Rangers have been conspiring against the best interests of Scottish Football as a whole for at least a decade.
If these allegations against the SFA, the SPL and senior Rangers employees can be established in fact then only full blown legal charges and courtroom proceedings will be able to get to the bottom of this.
This is terrific news for the whole of Scottish football save Rangers, the SFA and the SPL.
Very well done again PhilMacGiollaBhain.
There shall rightly be NO hiding place for any of them.
February 27, 2012 at 8:32 am
tick tock
Breath not held. Surely the issue falls within uefa’s remit.
February 27, 2012 at 8:16 am
jimbonpaddy
Thanks again.
As more information comes out I feel more cheated. Its in line with a win at any cost mentality. The attitude that they have a ‘right’ to be the top team in Scotland rather than earn the title. How can the scottish press argue that we need them when they have cheated every club in scotland and are now harming them financially?
February 27, 2012 at 8:14 am
fara
If rangers do indeed lose the FTT then the SFA should be given the chance to investigate before UEFA step in. Any whitewash with their findings would be all the rope UEFA need to hang the lot of them.
February 27, 2012 at 8:01 am
Paddybhoy
Phil, surely the result of the tax case is immaterial. If Rangers made side deals with players and did not fully register these contracts, are they guilty of failure to properly register the players and therefore must suffer the consequences as a club and the individuals need to be dealt with also.
February 27, 2012 at 7:56 am
Smiddy3006
Where was the good and honorable QC, and one time director of rangers (no capitalization needed now), Mr Findlay, when all this EBT was happening? Was he paid in a similar fashion during that time? Was he aware of the EBT? Was he required to sign, as a director, anything to do with te EBT? Just a thought.
Otherwise yet another fine job by Phil.
February 27, 2012 at 5:48 am
Liam Fowler
phil , i salute you , years ahead once again ,informed celtic sources, such as yourself ,have been pointing this stuff out for three years, i kinda understand the way of procedure,but i dont understand the timescale—if i owed the taxman £500 , he would send sherrifs to seize my t.v., why have the troopsfunders(not)been allowed to default for so long?
February 27, 2012 at 5:20 am
duggie73
Just checking.
The articles referred to are from SFA/SPL’s current rules, yes?
These haven’t been revised since the period the EBT’s were operated? For sure?
February 27, 2012 at 3:40 am
iainrobertson
all this does is point to a group of individuals who at one time or another worked for rangers in some capacity ….how ironic that these same people will do anything to try and avoid the implications of association of a club in the last throws of life ….hell mend the parasites that ruined rangers football club …murray ..bain…muir…greig….king….whyte….RIP Rangers ….ps green is still not my colour and im no bigot …
February 27, 2012 at 12:35 am
Auldheid
Last June it was obvious that something was not right at the SFA. When when this article
http://celticunderground.net/index.php?option=com_content&view=article&id=693:sfa-reform-one-down-three-to-go&catid=45:season-2010-2011&Itemid=80
was penned, however whilst the suspicion was that some skullduggery was at play,the scope and depth was beyond believing at that time.
That does not render the proposed reforms in the article invalid, quite the reverse in fact and so all the more important that the past is investigated and measures introduced to prevent a repeat.
Keep up the pressue Phil.
February 27, 2012 at 12:34 am
stunney
Phil, make sure Paul McBride knows all about this post.
If the tax appeal by Rangers goes in Hector’s favour, then unleash hell on the governing bodies with regard to how the relevant player registrations were handled.
February 26, 2012 at 11:50 pm
Lenny Bhoy
Once again this gets better and better. The genie has come out of the bottle and the bad guys are running for cover.
February 26, 2012 at 11:43 pm
dutchbhoy
Phil this is again a great post that can’t be denied by the SFA/SPL and the so called ” independent” media. This scam committed by that club and approved or at least know to by these men can’t remain unpunished.If mr Regan refuses to intervene i think that the UEFA will step in,according to their FAIR PLAY program.
The question that keeps me wondering is how much money they have during this scam “stolen” from Celtic in revenues from Champions Leauge games and television rights
February 26, 2012 at 11:22 pm
Celtic Rebel
In reply to Andrew Watt,you can be assured that Celtic F.C. already have all the facts available to them,they have top notch lawyers just waiting for the moment and by God all hell will break loose down Hampden way.
February 26, 2012 at 11:21 pm
Paul Bradley
Nicely composed Phil. However, we can’t jump the gun. Until the Big Tax Case tribunal pronounces there is nothing to move on. If it goes against Rangers then you can expect fireworks all round.
Not only will HMRC be after the deceivers but so will all clubs that have been affected by this deception over the last decade or so.
I can then see all kinds of litigation against individuals developing.
I suspect that the Board of Celtic will be taking a leading role in any afters should Rangers lose the case.
Lets just be patient and hold our powder a ittle longer.
February 26, 2012 at 11:13 pm
Celia Murphy
“In Phil We Trust” xx
February 26, 2012 at 10:45 pm
fisiani
Process must be followed.
The SFA have to investigate after the results of the tax case are published. I assume that they will show SFA rules have been repeatedly and deceptively broken.
The SFA investigation has to reach a conclusion.
If the conclusion is a whitewash or whytewash then UEFA have to be called in to investigate the SFA.
This process will take a long time. The current SFA enquiry does not even have these issues within its remit.
This is a story that has been kept secret but the Rubicon has been passed. This genie cannot go back in the bottle.
Heads will roll, knighthoods may be stripped, reputations will be tarnished and the waves that have washed up so far are but the mere portends of the approaching tsunami.
February 26, 2012 at 10:45 pm
Padraig K
I love it Phil!! Go get ‘em!!
February 26, 2012 at 10:34 pm
paddy smyth
These people have skins thicer than a rhinoceros hide. Keep hounding them Phil
February 26, 2012 at 10:25 pm
Johnnybhoy
First time poster and only been reading your articles since I got my iPhone, but you are a godsend my friend!
Thank you for all this hard work and the entertainment it provides me
HH
February 26, 2012 at 10:23 pm
mickd
One word: succinct.
February 26, 2012 at 10:23 pm
John
Brill as usual Phil!! Now lets get this bonfire lit!!!!!
February 26, 2012 at 10:23 pm
Brendan
Phil,
This is potentially undeniable confirmation of what we paranoids have known for years…. that Rangers are the favour of the establishment and have for many years been the benificiary for inequitably applied football rules…
The men you mention or their lackeys will conspire to hold the truth at bay, one suspects as with sectarian singing from the Orc hordes, it will be UEFA who pursue this, leaving Scotlands football integrity blowing like tumbleweed down ole Edmiston drive….
How many times will we say well done sir…can’t wait for the book
Brendan
February 26, 2012 at 10:19 pm
Al
bit unfair innit Phil, surely they thought their use of EBT’s were all above board, oh hold on, maybe thats why they went for those positions, this could be fun.
interestingly enough, i tweeted Stewart Regan the other day and asked him that should a newco materialise would members of Murrays old board be fit and proper, sadly he didnt reply.
February 26, 2012 at 10:14 pm
davythelotion
Check existing and past employees pension and personal liabilities, hence the ‘we can’t do without ‘em’
February 26, 2012 at 10:08 pm
Steviemac
Ignorance?
Unaware?
Complicit?
Thick?
Not responsible for those aspects in their role?
select the most appropriate answers for each director / official.
February 26, 2012 at 10:07 pm
James Harkness
Phil Mac, on the money again.
Let’s see if the MSM change their ways but I doubt it.
February 26, 2012 at 10:06 pm
Freddie
Your wasting your time with the SPL and SFA they have bungled through this whole episode so far and have vested interests in not pursuing their own. Just take it to UEFA and get the whole sorry state of Scottish football sorted out. They cannot and will not do it themselves.
February 26, 2012 at 10:04 pm
davythelotion
I don’t believe that ranjurz operated an illegal tax evasion scheme. EBTs are not illegal, stretching the point with HMRC is something that people who have gone to uni and worked hard seem to devote an enormous amount of time to for enormous benefit.
The real scandal here is that ranjurz took the idea of an EBT and invented something which was so wrong ,it couldn’t be right!
My belief is that a lot of former employees, and some current employees, are starting to realise that they may be personally liable AND their pensions may be at risk if a certain footie club experiences liquidation.
February 26, 2012 at 10:03 pm
celt4life
daveythelotion
employees are NOT liable for their own tax, EMPLOYERS are as they should deduct them from source through PAYE.
Whether employees or players KNEW about their EBT is irrelevant it is incumbent on the employer to pay tax on earnings.
An example would be the £9million in unpaid NI and Income Tax run up under the MBB this season, it was deducted from employees earnings, just not remitted to HMRC
February 26, 2012 at 10:45 pm
Des
Of course the Scottish Media will step up to the honourable task
… as ‘loyal’ rangers fans they “don’t do walking away”
Unless you are talking about paying taxes, cheating all teams in Scotland for [ironically] for ‘the benefit of Scottish football”
Craig Whyte could not have happened to a more apt bunch of numpties
WATP … We (the worldwide Celtic family) Are Totally Partying!
There may always be ‘a rangers’ but ‘the Rangers’ will die in 2012. Joyous fact.
And in that year I feel it is wholly appropriate that Celtic will win the treble AND win the league on St Patrick’s Day, or at Debt Mountain for the first time since 1967.
Don’t mind which, as both are true poetic options. Hail hail.
February 26, 2012 at 10:00 pm
John Bhoy
Phil,
Maybe UEFA involvement will be the best thing which would hopefully lead to a proper investigation of the goings on at Ibrox. Craig Whyte has done us a favour as with the administrators going through everything we are finding out what has actually went on in Govan. We have been painted as paranoid for years but as the truth gradually come out we are being proved right. Keep up the good work.
February 26, 2012 at 9:54 pm
John Black
Keep it up Phil, please don’t relent,
February 26, 2012 at 9:52 pm
Andrew Watt
Celtic need to follow this line of enquiry through and go straight to UEFA with their findings.
The SFA cannot be trusted to self police itself.
Phil,do you know if Celtic plan to pursue this through UEFA ?
February 26, 2012 at 9:43 pm
Phil Mac Giolla Bhain
Andrew the SFA must be given a chance to conduct a full investigation IF the FTT finds for HMRC.
That is an important caveat in my piece.
February 26, 2012 at 10:27 pm
Scottsman78
It’s all starting to become clear. I suppose they’ll throw the paranoid Celtic tag at us again. Maybe a new probe into refereeing should be next on the list?
February 26, 2012 at 9:41 pm
Cosmo
Great piece Phil. More moves than a barrel of maggots has this Rangers saga. Ha ha.
I think you know the answer to your own question regarding the sports desks in Glasgow. Ahem………
February 26, 2012 at 9:40 pm
Mike McD
The sooner UEFA gets in and has a look at how Scottish football has been run in the past decade (or more) the better.
It took Fergus McCann to get rid of Jim Farry with his holding up registration of Cadette I for one thought then that there would have been a bit more of a deep look in to the running of the SFA and the Scottish leagues as they where then – but it never happened. Has it taken the HMRC to start to pull down the whole corrupted house? Certainly looks that way.
I for one would welcome a UEFA probe in to things, the sooner the better!
February 26, 2012 at 9:39 pm
Chazz
Someone brought this up on Radio Scotland with James Traynor last night. Was it you? I honestly think they will all get away it. Sadly.
February 26, 2012 at 9:38 pm
Andybhoy
We have always known the dice were loaded,,we just didn’t have the evidence,,,I think that’s about to change.
Always a pleasure phil
February 26, 2012 at 9:36 pm
Bhoy67
Well done Phil
Amazing work
February 26, 2012 at 9:36 pm
Hector's Army
I wont hold my breath.
February 26, 2012 at 9:30 pm
stevie bhoy
phil i follow your blogs and read every day as i do with the rangers tax case blog i find you and the tax case the best place for info . how ever one thing puzzles me about whyte and rangers if they have been deducting the paye and ni from employees and not passing them onto hmrc , but using these too meet bills have they not been trading while insolvent which is against the law and carries a prison term if found guilty i would like too hear your thoughts on this please
February 26, 2012 at 9:29 pm
Paulsatim
Nice one, Phil. Again!!!
February 26, 2012 at 9:28 pm