Rangers have appointed administrators Duff and Phelps a day after filing an intent to enter administration. The move puts Rangers in compliance with the court, who urged the club to hire administrators within 24 hours, and triggers a 10-point deduction that basically hands rivals Celtic the Scottish Premier League title.
The Glasgow club has more than 100 trophies to their name, but that hasn't kept them from a long battle with Her Majesty's Revenue and Customs (HMRC). They had been involved in a dispute over a £36.5 million tax bill that was heard by a tribunal and now there is a fresh £9 million claim that HMRC are taking action over.
"Duff and Phelps has been engaged by the directors of the Rangers Football Club plc [RFC] to assist its negotiations with HMRC, and possible restructuring options," the administrators said after being appointed by the club just 45 minutes before the court-imposed deadline.
"As a result the inability of RFC to conclude negotiations with HMRC the board of directors have filed a notice of intention to appoint administrators. The purpose of this notice is to provide a moratorium against potential creditor actions.
"Meetings are due to take place with HMRC in relation to the tax position of the company. Management remain hopeful that with the assistance of HMRC a consensual and solvent solution can be found. In the meantime RFC is continuing to trade as usual."
The hiring of administrators means an immediate 10-point deduction on Rangers, which ends any chance they may have had at catching Celtic for the SPL title. Rangers trailed Celtic by just four points on Tuesday morning, but the 10-point deduction puts them 14 points back and essentially hands Celtic the trophy in February.