Scottish Premier League News May 2010: Financial Chaos At Rangers Despite Championship Win
Lisa Dillon
Rangers
They finally did what they have been threatening to do for some time and crossed the line for the second successive season.
Walter Smith lead Rangers to their second successive title with a win over Hibs at Easter Road, a result that tied the ribbons on the SPL trophy with three SPL games to spare.
However, barely had the champagne been uncorked when the celebrations were falling a little flat.
The day after the Ibrox club's success came a report claiming that the taxman was gunning for a club which are already up to their neck in financial problems. The latest twist has come amid a report into Rangers' finances over alleged payments to players in offshore accounts, which could bring a massive backdated tax bill on the club. It's the last thing they need as they face another summer without bringing any new faces and possible cutbacks and this revelation brings the threat of administration ever closer.
The payments, at the centre of the probe, began a decade ago in the form of an employee remuneration trust, side-stepping the taxman and now it would seem the Inland Revenue may be ready to call in what's owed, if it is found to be true. It's another twist to the ongoing saga of Rangers' ownership as majority shareholder Sir David Murray looks to offload, but as the balance sheet looks more and more convoluted and confusing, the options of potential buyers gets thinner and thinner. This latest episode will not help.
However the investigation into the loophole could take months before any outcome is determined, but with the possibility that Walter Smith's hands will be tied again in the transfer market, the mood has blackened at Ibrox. Prize money from winning the title and involvement in the Champions League look likely to be swallowed up by Lloyds' Bank, who have controversially been overseeing the financial predicament, meaning no new investment in the team. Also the proposed move to buy the club by London property developer Andrew Ellis has gone quiet in recent weeks and the involvement of the Inland Revenue may just sway him away from the club.
News of the story broke as the songs of celebration were still ringing in Smith's ears. Yet, the Rangers manager has warned that if the club is to be successful on the field that they simply will have to invest in some capacity on the playing field.
Smith believes the planning for next season must start immediately. The Rangers manager has serious and genuine concerns in the short-term.
The indecision around the club leaves Smith in a precarious role.
"For us, the financial situation is well-documented," he said."If anybody wants to look at the business columns, you'll see exactly what it is. But we have to handle the problems that we're left with because of that situation. We can only handle that for so long. I would feel, right at the present moment, that the 'so long' period is up. Unless something happens, then you can't keep asking this same group to come back and play week-in, week-out."
Smith then mounted an appeal for clarity and a speedy resolution to the present situation where a clear budget has not been drawn up for the manager. "If it's going to be the bank's plan, if it's going to be a new owner, if there is something else that comes along - a supporters' buy-out or whatever - we don't need it in a month's time," he said, stressing the immediacy of the crisis confronting him. "I can only have an opinion on how long it can be allowed to drift. And I'm saying to you that, if something doesn't happen shortly to let us know exactly where everybody stands at the club, then we've got a major problem."
That problem may be exacerbated by the departure of the manager. "That leaves me with a decision. I'll need to say them: 'If nothing is going to change in the short-term, what is happening?' "
He was brutally honest, too, about Rangers' almost certain qualification for the group stages of the Champions League. The Ibrox side are guaranteed £10m from their participation in the group stages of the Champions League next season, but whether the Rangers manager gets to see even a penny of that remains to be seen. Smith said of the bankers: "I'm the manager. I can only point it out from the playing side of things. From the other side of things, they're elated aren't they? Because that's them, they've got an opportunity of the Champions League money again, they're rubbing their hands."
And Smith revealed just how difficult the position would have been if Rangers had not won the league for the last two years.
"The club would maybe have been sold. There you are," he said. "Why? Because they're sitting back looking at two lots of Champions League money, aren't they? That's £24m, dead easy from their point of view. We have been disadvantaging anybody buying the club by winning. That's what we're doing."
The impact on the playing side of the club, though, is substantial. "There has to be a situation, for the sake of the football side - never me or my position - that clarifies exactly where the club is going. If we don't get that, then the club will suffer. Never mind me, never mind anybody else, the club will suffer," he said.
When asked what chance would there be of a third successive title if the current problems are not addressed, Smith was curt."I said quite clearly that the team will suffer."
And the Champions League? "The thing about the Champions League is, if we don't strengthen and don't get any extra players in, we're basically going in for the money. That's how it is. We're not going to win it anyway. It would be a folly to consider that. But the year that we had the big European games, challenged for the championship, won a couple of cups and got to the final of the UEFA Cup, we had 26 players on the staff. We're now down to roughly 16, taking away the younger ones. I'm talking about boys with reasonable experience. We're down to 16, six of whom are out of contract. You start to see the problems that can occur."
The only way out of that situation is for a budget to be drawn up now so Smith can make his dispositions. However, that is contingent on stability at the club. There are already growing whispers that Rangers could be the subject of a sustained, serious bidding in the coming weeks. Smith would then almost certainly remain with the club with the proviso that his coaching staff remained untouched and his budget for players was realistic.
But he is tiring of the situation. He said: "It was 18 months ago now that everybody was put up for sale. And for six months before that, we had the situation boiling away in the background. So we've had to deal with it for a couple of years now. But we've had a really good group of players, that's the one thing. They are great lads, terrific boys to work with."
He also said "the brightness and edge" had been rubbed off the players by the rigors of the season. "I don't think people appreciate just how much it takes out of a player in an Old Firm team, to go and win every week," he said.
The campaign has taken its toll on Smith, too. It is not just time that is running out but his patience, too. He is standing on the front line with no sign of reinforcements and with at least two leading players - in Kris Boyd and Madjid Bougherra - likely to leave the ranks.
The club remains firmly entrenched in uncertainty, despite their triumphs on the field.
Celtic
Johan Mjallby believes that he and Neil Lennon must be contenders for a long-term management role at Celtic Park after taking the club on their best run of league form for 18 months.
The Parkhead side have won their last last six successive SPL games, but a major stain against the duo was the shock Active Nation Scottish Cup semi-final defeat to Ross County.
The spectre of that defeat to the Highlanders will linger over Parkhead throughout the summer, but some bite has returned to the side since Lennon and Mjallby inherited the post. Lennon savaged the players in the aftermath of the loss at Hampden and did not flinch in ensuring his criticism missed no-one.
Celtic appear to have responded and have avoided going into freefall, as many predicted they might.
And Mjallby, who is also wanted by Swedish side AIK Stockholm to take over as boss, believes that he and Lennon have done enough to deserve the post on a permanent basis. No decision will be taken until the summer break and it remains to be seen if the duo's lack of experience in management counts against them.
"I think the main thing for the board is to try to take the club forward," said the Swede. "It's up to them to decide who is going to be in charge. But I think you could say our name should be in the hat."
Mjallby was always aware his stint at Celtic Park could be a short one when he was approached by former Parkhead team-mate Lennon following the sacking of Tony Mowbray last month. But he warned some Celtic players could also be in danger of leaving the club in the summer if they do not keep up their recent SPL form in the closing weeks of the campaign.
"We have enjoyed it so far and we still need to ensure we have a few good results between now and the end of the season," the former Celtic defender said. "If we do that, hopefully Neil has a good chance of getting the job. If he wants me on board, I'm definitely going to say yes because it's brilliant to be here.
"We can only do our best and try to make sure we're going to go away with a couple of good results. A lot has been made of the fact that we do not have a lot of managerial experience, but between the two of us we have a helluva lot of experience at the very top level in football.
"We also both have a lot of energy and a desire to win, as well as a desire to keep learning."
Mjallby also insisted the uncertainty over the managerial position was irrelevant to the players in the coming weeks.
"I don't think it's a big thing for them who is going to be in charge next season," he said. "The main thing for them is to show they are good enough as well. So there are still three big games for them as well as for us."
Mjallby believes that Lennon's man-management had been "spot on" and believes he has restored spirit to the team following the Hampden shock against County.
"I would say Neil has been outstanding so far, he has been great with the players and has been making the right decisions. Unfortunately, when we lost in the semi-final, I don't think the tactics were wrong. We just didn't pass the ball or work hard enough as a team.
"I think, after the disaster against Ross County, we have seen a bit more passion in the team. I think they work harder for each other out on the pitch.
"If you are solid at the back then we have got firepower up front that can change games for us. Obviously there are a lot of things to work on to make this team really successful again, but we only had a few weeks to work on things so it's not easy.
"When you start pre-season, then you could work on things tactically."
It remains to be seen whether or not the duo get that chance.
SPL
The Scottish Premier League could be set to increase to 14 clubs from season 2011-12, with relegation play-offs also featuring in the new set-up.
There has been widespread criticism of the current format this season from various SPL managers and with falling attendances, the pressure is on to try and create some excitement in the Scottish game.
The new format would see all clubs play each other twice and split after 26 games into a top six and bottom eight. After the split, clubs in the top six and the bottom eight would then play each other twice.
This would mean 36 matches for the clubs in the top six, with 40 games being played by those finishing in the bottom eight.
At present, the SPL splits into two sections of six after 33 games, with one in the bottom six being automatically relegated, but this season clubs have strongly criticised a system that can see clubs having an imbalance of home and away games.
An even bigger SPL, featuring a 16 or 18-club top league, along with a second division for the SPL, is also under discussion. But the 14-club model appears to be the one most likely to be adopted in time for season 2011-2012.
A senior Scottish football figure said: "SPL clubs are currently involved in deep consultation and trying to build a consensus on the way forward.
"There will be a window of opportunity in the next two or three months for the clubs to announce the changes in the summer so that everyone knows what they are playing for next season.
"There is an appreciation of the need for change. What is being discussed at the moment with a 14-club setup would give us a balanced split and we would know the fixtures in advance. This is not blind optimism. We know the model has got to change. Everyone can see the benefit in refreshing things."
Dundee United chairman Stephen Thompson said that he was open to persuasion on any change to the league structure.
"I am neither for or against a 14-club league," he said. "I am open-minded to change. However, that change has to be about more than just bringing two extra clubs into the league.
"There are a whole lot of things that have to be changed and I want all-round change in many areas of the game rather than just a bigger league set-up."
It is believed that many SPL clubs, while favouring an even bigger top league, will approve a 14-club set-up.
Further discussions are ongoing. But, under the new set-up, one club would be automatically relegated from the SPL and one promoted from the First Division. The second bottom SPL club would then be involved in a play off with the clubs finishing second, third and possibly even fourth in the First Division.
SPL clubs are due to meet at the end of the season for a strategy day, with various proposals being discussed then. Any change to the current league set-up would, however, require an 11-1 vote in favour from the existing 12 clubs under the SPL constitution.
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