Rangers’ administrators said Wednesday they were looking to sell the Glasgow giants within “days” in a frantic bid to keep the financially stricken Scottish champions operating as a going concern.
Administrators Duff and Phelps added that the uncertainty surrounding Rangers meant there there was a real risk the club could fail to fulfil the remainder of its Scottish Premier League fixtures this season — a move that could see the club forced to drop into the lower leagues. Duff and Phelps had hoped to persuade the first-team squad at Ibrox to accept a package of salary cuts but two days of talks broke up Wednesday without a deal being done. Joint administrator David Whitehouse said in a statement: “We are announcing today we are accelerating the sale of Rangers Football Club. “The club is in a perilous financial situation and that should not be under-estimated. “Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business.
“We understand the players’ position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed. “In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad.
“We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.”
Duff and Phelps are seeking to make reported savings of £1 million per month and Whitehouse said: “No-one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the club will not be able to fulfil its fixtures throughout the remainder of the season.
“As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. “The manager, Ally McCoist, will play an integral part in these discussions. “If, however, it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the club.” Duff and Phelps were called in on February 14 after British tax authorities went to court to seek payment of an unpaid bill of £9 million ($14m) built up since owner Craig Whyte took control at Ibrox in May. Rangers are also awaiting the verdict of a tax tribunal that could leave them with a bill of up to £75m, according to Whyte. The 140-year-old club were docked 10 points for entering administration, a penalty which effectively handed the SPL title to arch Glasgow rivals Celtic. Administration is the process whereby a troubled company calls upon independent expert financial help in a bid to remain operational
But earlier on Wednesday, Rangers’ second-largest shareholder said the scale of the club’s cash crisis was so great they faced “inevitable” liquidation. South Africa-based director Dave King, who has threatened legal action against Whyte, said Rangers might have to reapply for membership of the Scottish Football Association. King added this could mean Rangers having to work their way back to the top flight from the lower leagues.
“It is a sad point to have reached, but if managed sensibly, it can result in Rangers returning to its former glory as a football club in the shortest time possible,” King said. Gregg Wylde and Mervan Celik became the first players to leave Rangers on Tuesday after administrators rejected a proposal by the squad to have wages deferred rather than cut.
The administrators reportedly wanted to implement a scheme where the highest-earning players accepted a 75 percent wage cut, with those lower down the pay scale agreeing to salary reductions of between 25 to 50 percent.