Rangers bidders left in limbo by SPL plans to stiffen penalties for insolvency

Administrator Clark said proposed changes were 'disruptive and regrettable'

Rangers administrators Duff & Phelps have been forced to delay the announcement of a preferred bidder for the club due to proposed changes to Scottish Premier League rules.

The firm had hoped to declare yesterday the acceptance in principle of an offer for the purchase of the Ibrox giants, with Paul Murray's Blue Knights, the American businessman Bill Miller and a Singapore consortium fronted by Bill Ng still in the running.

However, the SPL has revealed that clubs will vote on a number of resolutions relating to financial fair play at a general meeting on 30 April, which could result in tougher sanctions for clubs in administration and those facing liquidation.

Paul Clark, joint administrator, said yesterday: "As administrators we had hoped to announce the acceptance in principle of an offer for the purchase of Rangers Football Club, which would be followed by a period of exclusivity while due diligence is undertaken.

"Regrettably, this is not now possible as we were informed over the Easter holiday period that the SPL is proposing to consider at a general meeting on 30 April, significant rule changes in relation to clubs which find themselves in an insolvency situation."

As well as being hit with a points deduction, a "newco" would also face financial penalties in the form of SPL payments being slashed by 75 per cent for three seasons.

The statement added: "Resolution 2B proposes revisions to the fee payment arrangements, i.e. SPL fees to any club which has undergone an insolvency transfer event will be reduced by 75 per cent in each of three seasons from the insolvency transfer event.

"Resolution 3 proposes extending sporting sanctions where an insolvency event is suffered by a group undertaking of a member club of the SPL... Resolution 4 proposes updates and extensions to the definition of insolvency event in the SPL rules. Resolution 5 proposes updates and extensions to the definition of insolvency event in the SPL articles and clarifies the process in the event that a member which is the subject of an insolvency event is required to transfer its share in the company."

A transfer embargo would be implemented on any club which fails to make PAYE and National Insurance contributions to Her Majesty's Revenue & Customs, under Resolution Seven on the general meeting's agenda.

Liquidation is an option in the event that Rangers are unable to exit administration via a Company Voluntary Arrangement.

Rangers are not the only SPL club to have financial difficulties this season, with wages problems at Hearts. In four months delivery of player and staff salaries were significantly delayed, and the Edinburgh club avoided the prospect of unlimited SPL sanctions after three successive such delays in January only after proving the payment had been made by the required date. March wages were also delayed.

Dunfermline also delayed payment of wages in full to their players and staff after feeling the impact of Rangers' predicament.

This is an issue the SPL is seeking to address. A league statement read: "Resolution 6 proposes a specific requirement in the SPL Rules that clubs must pay their players in terms of their contracts of service on due dates and places a duty on any club to report any failure to pay its players in a timely manner to the SPL. "Failure to pay players and/or to notify such failure to the SPL would be a breach of SPL Rules."

If passed, the amendments could come into force the day after the 2011-12 season ends. The statement added: "Resolutions 2B and 5 require the support of a minimum of 11 clubs to be adopted; all other resolutions require the support of a minimum of eight clubs to be adopted."

The SPL proposals would see a "newco" Rangers docked 10 points for two consecutive seasons, as well as the 75 per cent fees cut, if allowed straight back into the top flight. While accepting the SPL's right to run its own affairs, Clark described the proposed rule changes as "disruptive and regrettable" at a time when administrators are trying to find a buyer.

He added: "The effect of such revised measures being considered at this juncture is that we are duty bound to inform those parties who have submitted bids... We hope to issue a further update by the end of this week."

Suggested Topics
News
people
News
people And here is why...
News
peopleStella McCartney apologises over controversial Instagram picture
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Richard Burr remains the baker to beat on the Great British Bake Off
tvRichard remains the baker to beat as Chetna begins to flake
News
i100
Sport
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
tv
News
people
News
The village was originally named Llansanffraid-ym-Mechain after the Celtic female Saint Brigit, but the name was changed 150 years ago to Llansantffraid – a decision which suggests the incorrect gender of the saint
newsWelsh town changes its name, but can you spot the difference?
Arts and Entertainment
Kristen Scott Thomas in Electra at the Old Vic
theatreReview: Kristin Scott Thomas is magnificent in a five-star performance of ‘Electra’
Life and Style
Couples who boast about their relationship have been condemned as the most annoying Facebook users
tech
Arts and Entertainment
Hayley Williams performs with Paramore in New York
musicParamore singer says 'Steal Your Girl' is itself stolen from a New Found Glory hit
News
i100
Life and Style
The spring/summer 2015 Louis Vuitton show for Paris Fashion Week
fashion
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Time to stop running: At the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity

Time to stop running

At the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?