The sale of financially-struggling Rangers is being expedited by administrators in an effort to circumvent “very severe” cost-cutting measures.
Discussions with players, their agents, manager Ally McCoist, and PFA Scotland were initially hoped to lead to wage reductions, as the club requires savings of $6.68 million this season.
After negotiations stalled earlier this week, the administrators are now set to engage with potential buyers to attract new investment to Ibrox.
It has been disclosed that, without adequate cost-cutting measures or a significant influx of unexpected income, the club will struggle to complete its fixtures this season.
“We are announcing that we are accelerating the sale of Rangers football club,” stated David Whitehouse, joint administrator, on the club’s official website.
“The financial situation of the club is dire and should not be underestimated.
“Unfortunately, we have been unsuccessful in reaching an agreement on cost-cutting measures with the playing staff that would maintain the business’s value. We appreciate the players’ viewpoint, as the extent of wage reductions needed to realize these savings without job losses is indeed substantial.
“Consequently, we face a scenario that involves redundancies among the playing staff on a level that would significantly diminish the value of the squad. We are working towards a solution where cost-cutting measures can be enacted without compromising the integrity of the playing squad to an extent that would hinder the sale prospects.
“However, it is important to note that if adequate cost-cutting measures or significant unplanned income are not achieved, the club will be unable to fulfill its fixtures for the rest of the season.”
In the meantime, Rangers are unlikely to meet UEFA’s requirements for a license before the governing body’s deadline of March 31.
Administrators were appointed to the club on February 14 after British tax authorities sought payment of an outstanding bill totalling $13.5 million that accumulated during Craig Whyte’s ownership starting in May.
Additionally, Rangers await the decision of a tax tribunal that could impose a liability of as much as $112 million, as indicated by Whyte.
The 140-year-old club was penalized with a deduction of 10 points for entering administration, a setback that effectively granted the SPL title to their fierce rivals, Celtic.
Administration is a process through which a struggling company secures independent financial expertise to attempt to maintain operations.
by Buford Balony
