Rangers in Administration

So, the announcement that has shocked everyone and no-one- Rangers have lodged their intention to go into administration. What does this mean, I hear you ask?

Firstly, the club, assuming administration (i.e the size of their liabilities (debts) exceed the value of their assets) is entered within the next 10 days, will incur an automatic 10 point penalty from the SPL (which, in the current table, would leave them still in 2nd place, 5 points ahead of Motherwell but 14 behind Celtic) along with a player registration embargo (better get Daniel Cousin's paperwork signed off quickly, lads). The club will then be placed in the control of an administrator (most likely appointed by either HMRC or their bank), whose task will be to return the club to a position where it can trade normally. This would be achieved by a combination of cost-cutting, sale of assets and negoitating more lenient terms with creditors- this is known as a Company Voluntary Agreement.

A Company Voluntary Agreement (CVA) is where the club would agree with the creditor to write off the debt in return for paying off an agreed percentage of the debt. However, any CVA would require HMRC to approve, as a CVA can only be passed if approved by 75% or more of the creditors by value. A recent example of a CVA being approved would be Dundee FC, who managed to obtain a CVA paying just 6p in the pound- again, the major creditor was HMRC. That's not to say that a CVA will even be proposed, never mind accepted. In order for a CVA to be accepted, all concerned (the directors, administrator and creditors) need to be convinced that the business can be made viable and that the mistakes that led the business to insolvency have been learned, and will not be repeated.

While an agreement with creditors will be rigorously pursued, firstly over the next 10 days by the existing directors, then potentially by an administrator, there will no doubt be considerable emphasis placed on cost-cutting and the potential sale of assets. Expect to see a significant reduction in wage costs at Ibrox, with many non-playing personnel either being made redundant (with possibly an informal understanfing that, should the club return to a financially stable position, they be rehired) or asked to take a pay cut. The sale of players is a more complicated matter, with the transfer window now being shut for most European clubs- Sweden, Norway and Russia being the exceptions, and any prospect of raising significant transfer fees from there deemed slim (big-spending Anzhi Machachkala shop at more luxury boutiques), likewise the Americas. In any case, Rangers have a relatively small squad, containing few players who could be expected to command a transfer fee sizeable enough to make a real difference to the financial position.

One possible idea could be to arrange for the sales of players to go through at the end of the season when the transfer window reopens with Rangers receiving the money upfront while keeping the player until the summer. However, looking again at the recent example of Dundee being in a similar position, and trying to do the same thing when selling Leigh Griffiths to Wolves, the SPL and SFA are unlikely to be too keen on the club doing this- it could be seen to give the club an unfair advantage by having both the player and the monies for his transfer at the same time.

As for the rest of Scottish football, while there will no doubt be much Schadenfreude from the supporters (some of it understandable), this is not necessarily a good day for Scottish football. For instance, Dundee United (their share of the gate receipts from their recent Scottish Cup win at Ibrox) and Hearts (the final instalment of the Lee Wallace transfer fee) are both owed sums in the region of £100,000 by Rangers. What also should be concerning is that they are unable to afford to sign the cream of the talent from the rest of the SPL, with English Championship clubs now able to outbid them in terms of transfer fees and wages, therefore denying the players the possibility of Champions League (or, more likely, Europa League) football, and denying Celtic any real competition domestically. One also has to wonder about the commercial appeal of an SPL deprived of a competitive Rangers team, although none of these reasons should in any way prevent the relevant authorities (HMRC, SPL, SFA, administrators and other creditors) for seeking a favourable resolution, whatever the consequences. Contrary to the adverts, tax appears to be taxing in this case

Rangers v St Johnstone, Wednesday 3rd February

My Thoughts

A rare venture into midweek territory for the blog here, for this Co-Op Cup Semi-Final tie at Hampden. Both these sides have been going well in the SPL recently; Rangers have opened up a 10 point gap at the top, while only Celtic have defeated St Johnstone in their last 6 games. Hampden Park shouldn't intimidate St Johnstone- they have made it to the national stadium for semi-finals in both cup competitions on numerous occasions throughout the last few years, and were certainly not outclassed in 2-1 and 3-0 defeats against Rangers this season.

The Verdict
Rangers have generally been doing enough in recent weeks to get results without playing particularly brilliantly, coping with the absence of key players reasonably well. After a slightly shaky start, St Johnstone are now finding their feet in the SPL, and should have more than enough in the tank to avoid relegation. As mentioned, St Johnstone have a good cup record in recent years, and it's certainly not beyond them to take a slightly misfiring Rangers side to extra-time, as they did in 2008 in the Scottish Cup Semi Final, a match remembered for Martin Hardie (himself now ironically facing a lengthy absence through injury) destroying Steven Naismith and Kevin Thomson with bone-crunching tackles.

The Bet
If you fancy the Saints to take Rangers to extra-time, then the draw can be backed at a best price of 9/2 with Bwin. Other than that, semi-finals tend to be notoriously low-scoring, cagey affairs, and a quick look through the Co-Op Cup archives confirms this, and Rangers without Kris Boyd seem devoid of firepower. With that in mind, consider taking under 2.5 goals at a best price of 5/4 with William Hill.

You're the man, eh?

Here's Graeme's Silly Bet for the weekend:

It's Fifa 10 Friday so been slow in getting the post out.

No pumping occurred for Rangers last week, made me look foolish and silly. Still, I think Aberdeen are a really poor side and fully expect Kilmarnock to cause them problems. Tasty low scoring draw methinks.

1-1 draw available at 5/1 wth William Hill

Hawick to lose is a bet I wouldn't touch at the moment for fear of police investigation

OLD FIRM MADNESS!!!!

Ranger are still abject, mind you so are Celtic
3-0 Celtic available at 28/1 with William Hill

Premiership: Man Utd v Sunderland (Shifty will be attending this game. K Stand Tier 2)
Any goal scored in injury time, 15/4. Amidst the recent controversy (what controversy? Ed) could be worth a fateful cheeky punt

Good luck over the weekend, whatever market you bet in
xxxxxxx

Rangers v Celtic, Sunday 4th October

My Thoughts

A mixed week in European competition for these two sides: Rangers were taught a lesson in counterattacking football from Master Manolo Jimenez and his grade-A students from Sevilla, while Celtic will be pleased that they didn't lose their game. Both teams also have mixed news on the injury front: after their midweek result, Rangers have doubts over Madjid Bougherra (who is lost somewhere in last Tuesday), Davie Weir (as discussed in a previous entry on here), Sasa Papac (who has blurred vision) and Jerome Rothen, who was found in the Sevilla laundry room last night, still in the shorts pocket of their right-back, Abdoulay Konko. The NHS have also been in contact with Rangers regarding Allan McGregor's goalkeeping jersey, requesting that it come with a health warning, due to the likelihood of it causing seizures. Celtic, on the other hand, look set to have Andreas Hinkel and Paddy McCourt (Old Firm side in signing Irish player shocker) back in contention, after both players missed their 1-1 draw with Rapid Vienna.

The Verdict
Last season's Old Firm games were as tight as ever, save for Rangers' 4-2 win at Celtic Park last August. The last 4 meetings between the 2 sides have produced just 4 goals, so we're certainly due a few. Given the horsing that Rangers back line took at the hands of Sevilla, Tony Mowbray must be optimistic for his first Old Firm derby as a manager. Celtic to edge it, perhaps by the odd goal in 5

The Bet
Of course, my talking up of the possibility of goals could turn out to be a load of rubbish. If so, 1-0 Rangers is available at 7/1 with totesport, with 1-0 Celtic 15-2 at Skybet. However, over 3.5 goals is also worth a look, currently available at 10/3 with Extrabet. The same bookie also offers 5/2 on Scott McDonald to score anytime, following his goal in midweek and after scoring at Ibrox last season. For Rangers, Nacho Novo has been the scourge of Celtic in the past- he's available at 3/1 with Skybet to score anytime

Graeme is surprisingly well organised

Here's Graeme's Silly Bet for the weekend:

Hi all,

Aberdeen are due a pumping. Cue Rangers

Penalty awarded and scored, 3/1 @ William Hill
Boyd to score more than 2 goals, 11/2 @ William Hill

In other action this coming week another hilariously inept punt could come in the form of Man City going off the boil big time in their Monday night clash against West Ham

As Shifty hinted last week, West Ham's improved strike force (Alessandro Diamanti was rumoured to be at the Chelsea training ground today, showing John Terry how to take a penalty- Ed) are capable of causing an upset against the (slightly) bigger guys. City are not a happy ship at the moment. Problems such as a lack of discipline, an extremely loose defence (I would love to include the Rhona Jappy-based line and Youtube link Graeme sent me in his original draft, but for legal reasons I must not- Ed) and the potential abscence of Tevez (who?Ed), David Bellamy, Santa Claus, Robinho and Adebayor could cause Mark Hughes to suffer an almighty case of mental fucknuggetry on the touchline, and hopefully follow his team's example and actually smack a ballboy.

In other words, West Ham might just fancy their chances

Away win for West Ham, 7/1 @ William Hill

(game being shown in Number 2 Baker Street, so see y'all there guys)

Dundee United v Rangers, Sunday 24th May

My Thoughts

Something of a rarity in Scottish football has come about this season: neither of the Old Firm have managed to win at Tannadice. While it must be said that a large part of this is due to both Old Firm sides being a long way off their best this season, it is also testament to the work of Craig Levein at Dundee United, who has made his side fiercely competitive, robust, and very difficult to beat. This will not be the sort of walkover that Old Firm sides could previously expect from most SPL games, especially considering that Dundee United still need a point to confirm their Europa League place next season. In another intriguing twist, Dundee United's keeper, Lukasz Zaluska, will be playing his last game for the club on Sunday. His future employers? Celtic

The Verdict
Rangers' recent results have been good, with the exception of a 1-1 draw at Hibernian, even if performances haven't been quite what they could be. Dundee United were by all accounts disappointing in last weekend's 3-0 defeat at Hearts, and will be desperate to put in a strong performance in their last game of what has been a solid season, in order to secure a Europa League place. Given that all 3 games at Tannadice between the home side and the Old Firm have ended in draws, a 4th draw is certainly not beyond the realms of possibility.

The Bet
The draw can be backed at a best price of 10/3 with Boylesports. Alternatively, Rangers will surely need to score at some point, and in recent weeks the man they have turned to has been Nacho Novo, who can be backed to score anytime at a best price of 11/5 with Extrabet. Dundee United also rely on a Spaniard for goals- Francisco Sandaza- who can be backed at a general 3/1 to score anytime