Rangers, one of Scotland's most successful football clubs, went bankrupt in 2012 due to a combination of financial difficulties and tax avoidance schemes. The club's financial troubles led to administration and eventually liquidation, before being reborn as a new company, The Rangers Football Club Ltd, in the Scottish Third Division.
History of Financial Difficulties
Rangers' financial troubles began to mount in the late 2000s, during the ownership of Sir David Murray. The club's spending on players and wages exceeded its revenue, leading to a significant debt. The use of tax avoidance schemes, including EBTs, was also a major factor in the club's financial difficulties. In 2011, the club was sold to Craig Whyte, who continued to accumulate debt and unpaid tax bills.
Administration and Liquidation
In February 2012, Rangers entered administration due to an unpaid £9million tax bill. The club's administrators attempted to negotiate a Company Voluntary Arrangement (CVA) with creditors, but it was rejected. As a result, the club was forced to sell its assets and business to a new company, Sevco Scotland Ltd, which was later renamed The Rangers Football Club Ltd.
Rebirth and Restart
After being sold to a new company, Rangers restarted in the Scottish Third Division in the 2012-2013 season. The club has since worked its way back up the Scottish football league system, eventually returning to the Scottish Premiership. The club's rebirth has been seen as a success story, with many praising the new ownership and management for stabilizing the club's finances and restoring its reputation.
Sources
- Administration and liquidation of the Rangers Football Club plc - Wikipedia
- The unravelling of Rangers – the key questions – Channel 4 News
- From Bankruptcy To 55: The Rebirth Of Rangers FC - YouTube
- Sir David Murray and the fall of Rangers Football Club - BBC News
- How did Rangers slip into administration under Craig Whyte then ...