Rangers enter administration and suffer 10 point penalty

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By Andrew Warshaw

February 14 – Twenty-four hours after filing the relevant papers, Glasgow Rangers became one of the world’s most high-profile clubs ever to enter administration today, a stunning humiliation for a team supported by millions of fans worldwide and a severe wakeup call for clubs who fail to properly manage their financial affairs.

Rangers were immediately docked 10 points, putting them 14 points behind arch-rivals Celtic and effectively ending their domestic league campaign.

London-based firm Duff and Phelps was officially appointed administrators though it could have been worse but for an unsuccessful legal bid by HM Revenue and Customs (HMRC) at the Court of Session in Edinburgh to appoint its own administrator.

Duff and Phelps will now take over the day-to-day running of Rangers, Scotland’s defending champions and 54-time title winners, while addressing the club’s massive debt problems.

Rangers owner Craig Whyte had confirmed yesterday that the club had filed legal papers to appoint administrators.

It was initially thought that the club had 10 days to find an alternative solution but the HMRC action on Tuesday changed the dynamic.

The two parties are at loggerheads over a disputed tax bill and penalties of up to £49 million ($77 million/€59 million) but Whyte believes this figure could go as high as £75 million ($118 million/€90 million) which Rangers are unable to pay.

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