Rangers' administrators launch £25 million damages claim against former lawyers

By Andrew Warshaw

April 18 – The crisis facing Scottish giants Glasgow Rangers has taken another damaging twist with the news that the administrators currently in charge of the club are to sue the club’s former lawyers.

“We have instigated legal proceedings against Collyer Bristow, the former lawyers of the club, and The Rangers FC Group Limited in the High Court in London for substantial damages suffered by Rangers Football Club,” joint administrator Paul Clark of Duff and Phelps said in a statement.

Details of the damages claim were not disclosed but reports suggested the sum could be as high as £25 million ($40 million/€31 million).

Rangers are still seeking new buyers after being plunged into administration in February with debts of £9 million ($14 million/€11 million) in unpaid taxes since businessman Craig Whyte took an 85 per cent stake in the club nine months previously.

Administrators Clark and David Whitehouse allege that Collyer Bristow breached its rights and obligations when involved in the takeover.

Collyer Bristow responded by describing Duff and Phelps’ claims as “highly speculative” and pledged to “vigorously defend” them.

Founded in 1872, Rangers have been domestic champions a record 54 times, including for the last three seasons, and won the old European Cup Winners’ Cup in 1972.

Duff and Phelps remain confident that a preferred bidder for the club will be announced this week, understood to be a choice between parties from Singapore and the United States.

The Blue Knights consortium, led by former Rangers director Paul Murray, withdrew its interest on Monday (April 16).

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