Scottish champions Rangers will not play in European competition
next season because they will be unable to meet UEFA's March 31
accounts deadline, administrators said on Wednesday.
The administrators will also accelerate the sale of the club
after failing to agree cost-cutting measures with players.
"The club is in a perilous financial situation and that
should not be under-estimated. Regrettably, we have been unable
to agree cost-cutting measures with the playing staff on terms
that will preserve value in the business," joint administrator
David Whitehouse said in a statement.
"As a result, we are expediting the sale process and over
the next few days we will be holding discussions with
prospective purchasers who have declared their interest."
Whitehouse also warned "that in the absence of sufficient
cost-cutting measures or receipt of substantial unplanned
income, the club will not be able to fulfil its fixtures
throughout the remainder of the season".
The Glasgow club, league champions a world record 54 times,
went into administration last month owing nine million pounds in payroll and sales taxes.
Chairman Craig Whyte had been optimistic that the club would
be able to come out of administration by the end of the month,
and therefore meet UEFA's requirements.
However, joint administrator Paul Clark said Whyte was being
unrealistic since there were several issues yet to be resolved,
including unpaid taxes.
The news would pose yet another financial setback for the
club as they will lose out on money they would have earned had
they competed in Europe.
"The likelihood of the club being able to emerge
successfully from administration before this deadline as
indicated by the chairman was, at best optimistic given the
perilous financial situation at the club at the time of
insolvency," said Clark.
"The company accounts cannot realistically be signed off by
auditors in a manner that would meet the criteria required by
the footballing authorities."
Players and coaching staff had been in negotiations with the
administrators over wage cuts in a bid to save one million
pounds a month but Whitehouse confirmed that an agreement could
not be reached.
"We understand the players' position as the scale of wage
cuts required to achieve these savings without job losses were
very substantial indeed," Whitehouse added.
"In view of this, we are faced with a situation of making
redundancies within the playing staff on such a scale that would
materially erode the value of the playing squad.
"We are striving to strike a balance where cost-cutting
measures can be implemented but do not destroy the fabric of the
playing squad to the extent that it will inhibit the prospect of
"If however it becomes apparent that the sale process cannot
be accelerated there will be no choice but to implement very
severe cost cutting measures at the club."
Since going into administration, the financial practices of
the club are being investigated by various bodies, including the
Scottish Football Association and British tax authorities.
Whyte's takeover of the club last May is also being
investigated after the club confirmed he had previously been
disqualified as a director.
Rangers remain second behind arch-rivals Celtic in the SPL
despite incurring a 10-point deduction after going into
administration. They have another nine fixture left this season.
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