The Wall Street Journal

[Colin Stein 4 EVA 8]

An intresting read.

http://online.wsj.com/article/SB10000872396390443931404577550832362966366.html

[Phil 1,150]

Good piece, cheers for posting

It's fair and what unbiased journalism looks like, no surprise it wasn't written by one of 'journalists' in the Scottish mhedia.

One of the comments that I haven't seen reported in our press was:

David Longmuir, chief executive of the Scottish Football League, says: "There is a huge opportunity for fans of other clubs around the country to see a great Scottish football institution come to towns, cities and villages that they have never been to before."

Yes Mr Longmuir, yes they will get the chance to see a fantastic institution coming to their grounds and towns, the Rangers are going to make history, again

[The Mongoose 1,007]

I read this earlier today and have to agree it is a good honest and unbiased piece of journalism.

Well worth the read!

[Douglas Cameron 179]

Nothing new but a well written piece. Nobody outside Scotland can believe what has and is going on

[BlueThunder 8,454]

Do you have to have joined in '12 to post on this thread?

Tom Devine in that article is a twat. A deliberate misinterpretation of the EBTs.

[Bad Robot 21,512]

about 90% good, our franchise is not consigned to history, we've had worst periods in our history, it's not worse than the match fixing and at the time of writing this only one man who was at the club for only a short period never paid the taxes.

[dan_ger 1,454]

Article in full for the folks in their phone.

Wounded Giant Glasgow Rangers Start a New Life

Felled by Bankruptcy, the Former Titan of Scottish Soccer is Set to Rise Again—in the Little Leagues

At the far end of Glebe Park, the ground of Brechin City Football Club, a groundsman gently pushes an old metal machine, carefully painting a thin white line along the touchline.

Behind him looms the club's largest stand, situated—unusually—behind a goal, rather than the more orthodox location on the halfway line. The latter position is occupied instead by the ground's most striking feature: a tall, beech hedge that runs around a third of the pitch.

In the lower leagues of Scottish soccer, where an average match day attendance is around 500, aesthetics are taken seriously.

"Aye, we just had it trimmed," said Martin Smith, vice chairman of Brechin City Football Club, speaking on Tuesday. "At the beginning of every season we get the hedge-cutter in to make it look good for the start of the campaign."

This year, Brechin City's famous hedge is preparing to witness the most astonishing start to any season in the club's 106-year history. The smallest city in Britain to have a professional football team is primed to kick off its campaign with a Ramsdens Cup tie at home against one of the oldest and most decorated institutions in world football, Glasgow Rangers.

"It will be without doubt the biggest game in our history," says Ken Ferguson, the chairman of Brechin City Football Club. "To think of all those Rangers players, walking into our wee dressing room on Sunday. It's huge for us. But good for football as well. We like to regard ourselves as a community club, we are here to serve our community, to try and put a smile on people's faces after a hard working week."

In the Rangers camp, smiles have been in short supply in recent months. Just four years ago the club, which boasts a world record 54 league titles, was competing in the final of a major European football competition, the UEFA Cup, when it played Russia's Zenit Saint Petersburg in Manchester, England. But in the past 18 months the club has been sold, pursued by the British tax authorities for potentially huge debts, put into administration and then, finally, liquidation, effectively consigning one of world sport's most successful franchises to history.

In July, a new company, often referred to as "newco," was formed, still marketed as Rangers F.C., playing at the club's famous 50,000-seat stadium, Ibrox, and training at its state-of-the-art training ground, Murray Park.

The new company had to apply to the Scottish Football Association and the Scottish Football League for entry. Plans were mooted to parachute Rangers into the First Division, thus minimizing the potential loss of revenue to Scottish football from renegotiated television and commercial deals. But these were voted down by the Scottish Football League clubs to preserve what became termed "sporting integrity"—the sense that fair play, rather than money, drove the game. Thus, by agreement with the SFA, Rangers will begin their new life at the bottom of Scotland's lowest professional league, the third division.

Yet at the time of writing even this modest resurrection of the former giant wasn't guaranteed, as the club awaited the Scottish Football Association's final approval of the newco's league participation. This weekend, as city rival Glasgow Celtic entertains 18-time Italian champion Inter Milan at its 60,000-capacity Celtic Park, Rangers are hoping to begin the long climb back to the top of Scottish football running out to a crowd of just 4,100, plus one tall, neatly trimmed hedge, at Glebe Park.

"Never, since I have been attending Ibrox since 1960, did I think for one moment that we would see the club in such a mess as this," says John Macmillan, 78 years old, general secretary of the Rangers Supporters Association. "This is really very embarrassing and very disappointing. This is undoubtedly the worst period in the club's history, no doubt about it."

It is also one of the most spectacular falls any sporting institution has suffered, perhaps even outstripping that of France's Olympique de Marseille, which—following a match-fixing and bribery scandal in the mid-1990s—was stripped of a league title and relegated to play in France's league division 2.

"It is simply unimaginable this could have happened," says football historian David Goldblatt, author of "The Ball is Round: A Global History of Football" (2006), who likens it to a collapse of Barcelona or Real Madrid. "These are institutions that are part of a large, historical tradition and have massive political and cultural weight. Rangers is one of the oldest professional clubs in the world. It has been at the center of Scottish football for around 140 years."

To understand the importance of Rangers to world football, one has to look at the history of the modern game. The current rules were codified by the Football Association in England, but it was the Scots who invented the tactical side of the game.

"Scotland is the country which invented football," says Rogan Taylor, a football-finance expert and director of the Football Industry Group, a research unit at the University of Liverpool. "The English might have written the rules but they didn't know how to play it.

"Look at the record of the first 14 of the world's oldest international football fixture, Scotland v England. England won 0, lost 10 and drew four [matches]. For a long time, Scotland had the highest spectator per thousand population at football matches than any country in the world."

Central to this was Glasgow, which, explains Mr. Goldblatt, was the vortex of the game in the late 19th century. Clubs in the city built the largest stadiums, attracted the largest crowds, exported the game around the world and created one of the oldest and most heated rivalries in world sport, Rangers v Celtic, the notorious "Old Firm" game. That is now a rivalry that will go on hold for several seasons while Rangers attempt to work their way back up Scotland's football divisions.

Rangers' fall from grace centers around an apparently arcane tax problem; the "Employment Benefit Trusts" used to reward players under previous owner, Scottish steel magnate Sir David Murray, from 2001 to 2010. In such arrangements, money is transferred into an offshore trust, which is then divided into sub-trusts in the name of nominated employees. Loans can then be made to the beneficiaries with neither party being liable for tax. The loan is then written off, providing what is, in effect, a form of tax-free payment.

In recent years, the tax authorities have challenged these arrangements. Rangers still await a decision by a tribunal on whether its use of such a system violated tax law; if the ruling goes against the club it could face a bill of as much as £75 million ($116 million).

In May 2011, Sir David sold the controlling interest in the club to Scottish venture capitalist Craig Whyte. A period of turmoil followed in which, according to official administrator Duff & Phelps, value-added tax, income tax and National Insurance contributions were withheld, while a swath of creditors, including many small businesses, went unpaid. The club eventually went into administration in February. In a public statement made at the time, Mr. Whyte said: "Any fair investigation will prove that I have always acted in the best interests of Rangers and been involved in no criminal wrongdoing whatsoever."

Sir David on Thursday maintained that the Employee Benefit Trusts were legal and said: "Of course I am upset, for the employees and [Rangers'] supporters.…The situation needs to be resolved; it's dragging on and on."

"The irony is that this is a club with a strong public commitment to the queen and yet for years apparently hasn't been paying its taxes to the state," says Tom Devine, senior research professor in the history department of the University of Edinburgh.

The club's loyalty to the queen and the British state dates back to the early 20th century when it emerged as one of the key institutions of Protestant Scotland. This was in contrast with its rival, Glasgow Celtic, which symbolized the city's Irish Catholic population.

"There have been periods where the club has stalled on the field of play, like every football club, but the past five months have been in a more difficult field altogether," says Robert McElroy, co-author of "Rangers: the Complete Record" (2005) and editor of "Rangers Historian" magazine. "From a football perspective, this is the lowest period in the club's history."

Mr. Goldblatt says the sense of shame that fans of Rangers feel can be likened to that surrounding the fate of the country's two main banks, Halifax Bank of Scotland and Royal Bank of Scotland, which both had to be saved by taxpayers after accumulating substantial losses.

"There is knock-on effect not just through Scottish football but also through Scottish society. What can you trust?" he asks. "Really, if you can't trust Glasgow Rangers to be in the top Scottish division and solvent, then what can you trust?"

With English Premier League club Portsmouth also in severe financial difficulties, do the events surrounding Rangers have wider implications for world football?

According to the Deloitte Annual Review of Football Finance 2012, the European football business continued to show resistance to wider economic pressures, growing by 4% to €16.9 billion ($20.5 billion) in 2010-11.

Revenue in the big five leagues—England, Spain, Germany, Italy and France—rose by 2% to €8.6 billion, with all but France's Ligue 1 experiencing growth. Despite this, the report warns, European club football's greatest business challenge remains cost control.

In the past 15 years, wage costs have grown at a faster pace than revenues. In 1996-97 only 51% of the revenue of the clubs in the big five leagues was spent on wages; it is now 66%.

Mark Roberts, senior consultant at Deloitte's Sports Business Group, warns that if clubs do get into trouble, given the strong revenue fundamentals and increased broadcasting deals, the challenge is to manage the cost base. "It is the management of that which is the key," he says.

This is why the departure of Rangers from the top flight is a problem for more than the club itself and its fans. Central to the financial health of the Scottish game is the Old Firm fixture that was key to the Scottish Premier League being able to command a substantial amount for its television rights. Discussions are continuing with British Sky Broadcasting—part-owned by News Corp., which owns The Wall Street Journal—but if revenues fall below the present deal it could result in a number of other Scottish clubs facing administration. BSkyB declined to comment.

"There is a clear view out there that sporting integrity had to be maintained but if at all possible to try and do as little damage to the finances of the game as possible," says Brechin City chairman Mr. Ferguson.

Despite this, the financial cost to Scottish football could be heavy. As Mr. Taylor, the football-finance expert, points out, the Scottish television deal is minuscule compared to those cut for football in England.

Mr. Taylor says: "When the new English Premier League deal kicks off, two fixtures—Wigan v West Bromwich Albion plus Stoke v Reading—are equal in value to the entire season's revenue for the entire Scottish Premier League. That is the disparity. In the SPL, Rangers behaved as if it was in the Premier League, in that the money will just keep rolling in. But it didn't."

Others, however, see an opportunity for Rangers in what should be a charming and entertaining tour through some of Scotland's ports and backwaters by one of Europe's biggest clubs.

David Longmuir, chief executive of the Scottish Football League, says: "There is a huge opportunity for fans of other clubs around the country to see a great Scottish football institution come to towns, cities and villages that they have never been to before."

Back at Glebe Park, Mr. Ferguson and the Brechin team are preparing for a fixture that could net them as much as £35,000; more than 40% of their entire season's revenue.

"We have sold all the tickets, prepared all the hospitality, and we're all primed to go," says club secretary Angus Fairlie. "We're at the stage now where we just want a decision to be made as soon as possible."

Sources close to the Scottish Football Association say the granting of Rangers' license is now just about ironing out the detail, with the sticking point a decision on whether the club should be stripped of any of its titles. For Brechin City's chairman, it's time to put the internal political wrangling to one side.

"We just want to get on and play football," Mr. Ferguson says. "We have had a close season where football has been on the back burner as administration and legalities have got the focus of attention. We're here now, we're hearing all the right noises that a decision will be made and if it is, the season starts on Sunday, the ball's coming out so let's start playing and get the focus back on football." This is a sentiment with which most Rangers fans would probably agree.

Write to William Lyons at william.lyons@wsj.com

[southcoastbear 1,639]

A good piece where the journalist has done his research accross a broad range of sources and endeavours to provide an unbiased commentary allowing the reader to draw their own conclusions rather than the sensationalist, badly researched ( if at all ), self opinionated drivel that appears to attempt to force the writer's own biased agenda down the readers throat.

A decent well written piece that attempts to provide the facts along with a attempting to provide an unbiased insight into the overall situation. Perhaps a few of the gutter press should look rather closely at this example of journalism and they may realise how far short their own ramblings fall of the required standard and hopefully they may realise how pathetic they look in comparisom

[Ozblue 4,332]

Do you have to have joined in '12 to post on this thread?

Tom Devine in that article is a twat. A deliberate misinterpretation of the EBTs.

From the little that I have heard from this guy, he is a fucking twat..PERIOD!

[JCDBigBear 10,865]

I e-mailed the following to Mr Lyons of the Wall Street Journal this morning:

""I have just read your article on my club, The Rangers Football Club, from the Wall Street Journal and I would congratulate you on a pretty unbiased account of our situation (which is something we have not received in the Scottish media). I do, however, have one point to make concerning the comments attributed to Tom Devine of Edinburgh University.

Mr Devine is an ardent Celtic fan and quite anti-Rangers. He has quite deliberately misinformed you and your readers of the tax situation. Until Craig Whyte took over the club and removed two senior executive directors in summer 2011, Rangers FC paid all due accounts within 30 days, including taxes to HMRC (like your IRS).

Mr Whyte and others involved in the takeover and subsequent running of the Club are currently under criminal investigation on the orders of the UK Crown Office.

I digressed slightly for a moment and now return to Mr Devine's comments. Rangers FC is accused by HMRC of not deducting tax from employees purely in relation to the EBT scheme. All other Taxes and accounts were paid in full and on time. In effect, with the EBT scheme, it's the employees who should have paid the tax at source, not Rangers FC. The Club is being held accountable for not having deducted tax at source. The tax involved is actually approximately £19m in total or £1.9m per annum on average. The final bill would be inflated by the addition of interest and penalties. The EBT scheme only amounted to approximately 13% of the Club's wage bill over a ten year period. The EBT scheme was clearly shown in the Club's audited accounts every year. Top tax advisors gave the Club advice on the EBTs. We are also one of approximately 8,000 other companies (including football clubs) who used EBTs. Celtic FC also used an EBT scheme albeit for a much shorter period.

Mr Devine's clearly biased comment failed to give you a true reflection of the issue of the EBT scheme at Rangers FC. His comment would have your readership believe that Rangers FC had evaded paying any taxes for years when that is simply not the case. Tax evasion is a criminal offence and no criminality has been alleged by HMRC with regard to the EBT scheme.

I trust you find this sheds a bit more light on the situation and gives you a different perspective of the whole matter of the EBT scheme which had been in place at Rangers FC.""

Mr Lyons responded that he got the same impression of Devine as me.

[Phil 1,150]

Mr Lyons responded that he got the same impression of Devine as me.

Did he actually say "tarrier bastard"?

Brilliant emal mate, and I'm glad to hear that devines hatred of Rangers shone through and was picked upon by a journalist outside of our own bigoted mhedia

[iang2911 423]

Very good ans honest article in the main.

Apart from that d!ck tom devine trying to stick the boot in. Even the courts in this country feel that they have to apologise for him but nothing is done.

[tartansmokie 36]

A good, honest, unbiased article, which was obviously written, edited and published by a media company outwith Scotland.

[Lisburn Rangers 254]

Mr. Taylor says: "When the new English Premier League deal kicks off, two fixtures—Wigan v West Bromwich Albion plus Stoke v Reading—are equal in value to the entire season's revenue for the entire Scottish Premier League. That is the disparity. In the SPL,

thats just crazy

[Hamie 4,856]

could i just say:

what a fucking amazing stadium we have.

[True Azure 1,414]

An excellent well written and researched article which does not involve any half truths or indulge in sensationalism. Devine's biased comments deserved to be exposed as false and I congratulate you for contacting Mr Lyons to highlight Devine's blatant lies in the interview.

[Silver Fox 167]

What a breath of fresh air to read a sensibly written article. This just brings into sharp focus the bile and hatred that is the hallmark of the SPL and its lapdog press. Starting with the Record I hope the Scottish Media wither away, they will soon have very little to talk about once the novelty of the ''Once Mighty Rangers, visit ground which has a hedge instead of a wall '' type stories become so boring that no one bothers. And although things obviously are not of our choosing, if the rest of D3 prove to be as welcoming as Brechin I think we shall have a very pleasant time visiting these smaller grounds and their usually quaint towns they hail from.

[JTP 221]

Mr Lyons responded that he got the same impression of Devine as me.

Well done mate

We are all too quick to berate our fellow bears for expressing their opinions but not so quick to applaud them when sticking up for the club we all love.

I wish there were more like you in fighting our corner or just generally explaining the truth every now and again (and I include myself in the not doing much category).

[J_RFC87 762]

Mr. Goldblatt says the sense of shame that fans of Rangers feel can be likened to that surrounding the fate of the country's two main banks, Halifax Bank of Scotland and Royal Bank of Scotland, which both had to be saved by taxpayers after accumulating substantial losses.

Likened, yes.

The major difference is that those banks were saved by the taxpayer and we, well, weren't.

[Sobatai 70]

The Wall Street Journal is part of Rupert Murdoch's empire of darkness ... still, a well-written piece.

Likened, yes.

The major difference is that those banks were saved by the taxpayer and we, well, weren't.

Well, HBoS was saved by a combination of Lloyds TSB and the taxpayer, which is, of course, how Lloyds came to be part of the demise of Rangers FC plc.

[J_RFC87 762]

Just about any bank would have treated Rangers the same, whether it was a bank that had been bailed out or not.

[Betty Boop 0]

Good article well spotted

[dan_ger 1,454]

GrahamSpiers Well done William Lyons, Wall Street Journal, on Rangers. Some of this familiar to Scottish eyes but still a good read…http://on.wsj.com/PzJC3X

@GrahamSpiers Great article until Tom Divine steps in with comments that are rather inaccurate. Luckily William Lyons researched EBT's.

@DavieDunn Re Rangers and EBTs I don't know how often we have to say it. Driving a car is not illegal. Breaking the speed-limit is.

@GrahamSpiers Graham, have Rangers been found guilty on the EBT's yet? I wasn't aware a judge had decided either way.