Scottish champion Rangers seeks bankruptcy protection, triggering a 10-point deduction, as Celtic are jubilating over league.
LONDON: Due to a financial collapse, Scottish champion Rangers was compelled to file for bankruptcy protection on Tuesday.
As a result, the 140-year-old team lost 10 points and Celtic was essentially awarded the championship.
Following a protracted legal battle with the tax authorities,
Rangers became the most well-known European team to enter financial administration.
As a result of the league’s automatic punishment, the team is currently 14 points behind its fierce Glasgow rival.
“Today has been extremely disheartening and dark,” stated manager Ally McCoist.
“Obviously, going into administration wasn’t ideal,
but many people believe that this football club would benefit more from it than anything else.”
Rangers holds the record for most domestic titles won by any team in the globe in addition to being the most successful in Scottish football.
Since last month, when it was revealed that the total debt of the top European teams surpassed €8 billion ($10.5 billion),
UEFA has been cautioning about the dangers of widespread overspending in football.
Due to tax debts totaling nine million pounds ($14 million) during Craig Whyte’s nine months as owner,
Rangers was placed into administration. Furthermore,
the Ibrox company is awaiting a tax tribunal’s decision regarding long-standing disputed liabilities totaling up to 75 million pounds ($117 million).
Rangers’ entry into administration was referred to by the Scottish Football Association as a “dire situation” that negatively reflected on the nation.
Scottish football’s history is going through a really sad period,
according to SFA Chief Executive Stewart Regan.
“The possible effects on the perception of the game overall should not be undervalued.”
Financial advisors Duff and Phelps have taken over as Rangers’ administrators,
with their job being to “ensure the ongoing survival of the business.”
Paul Clark, a joint administrator, stated,
“We fully recognize the great history of this club and what it means to people throughout the world.
” “Even though it’s a depressing day for Rangers, it also addresses the awful uncertainty that’s been surrounding the team.”
Whyte’s acquisition of the Rangers in May seemed to be the team’s first move toward financial recovery because he promised
to settle debts of 18 million pounds ($28.4 million) that remained from the time that former majority shareholder David Murray was in charge.
Whyte hasn’t been able to resolve the club’s financial issues, though,
and tax authorities are requesting that the settlementWhyte stated,
“The club has been loss-making for many months due to its cost structure.
” “The club has been in discussions with (HM Revenue & Customs) over these liabilities as a result of this scenario,
which has led to increased liabilities.
Get more related news on https://sportviewers.com
Leave a Reply