Saturday, 22 December 2012

Fans' Movement Required to End the Myth

With UEFA announcing a ban on Malaga competing in Europe next year due to monies owed to the tax authorities, and closer to home Hearts and their fans making every effort to pay HMRC to avoid a winding-up order, it is especially crass to say the least, that The Rangers are holding 140 year anniversary parties and crowing about being cash-rich and debt-free after dumping up to £140m in debts.

Even worse, they claim to be the same club as the legal entity placed in liquidation earlier this year.

With the acquiescence of the Scottish MSM and the complicit silence of the SFA, The Rangers has been allowed to promulgate the fiction that football "clubs" are separate from the "holding companies."

Like all the best lies, this has an element of plausibility.

Rangers FC plc WAS separate from its old holding company, MIH, and its final holding company The Rangers FC Group, both of which at one time owned the majority shareholding in Rangers Football Club plc.

But neither of those companies have been liquidated, Rangers FC plc itself  has been.

As I covered in my previous blog, there is no separate club and company. When clubs incorporate as Rangers FC did in 1899, they BECOME companies.

Rangers FC was founded in 1872, incorporated in 1899, and went into liquidation in 2012.

Scottish soccer fans would be wasting their time if they lobbied the SFA to show some leadership and declare The Rangers FC is a brand new club formed in 2012, with no connection to Rangers FC other than being the new owners of their real estate.

The only way to stop the Scottish media and football authorities allowing the "same club" myth from taking hold is by forcefully bringing the issue to the attention of UEFA, whom I suspect are not in possession of the full facts of the case.

There are two reasons why UEFA would have no option other than to declare The Rangers unambiguously a new club.

First of all, their own licensing regulations would prevent the myth being allowed to take hold.

UEFA define clubs as "legal entities responsible for a football team." Please note, not "responsible for a football 'club'." A "team." There is a significant difference.

UEFA do not recognise Charles Green 's definition of a club, ie, "the stadium, training ground, colours, badge and history."

Charles Green in effect has made "Ramgers " a brand, or a franchise, not a legal entity responsible for a football team.

Secondly, UEFA's Financial Fair Play regulations are dead in the water if the SFA is allowed to dupe UEFA into recognising The Rangers as the club formed in 1872.

How can UEFA ever make any club meet its financial obligations if these can be avoided simply by liquidating and selling the assets to a friendly businessman? Why would any club ever again WANT to meet its financial obligations if it can simply switch "holding company" and dump any amount of debt?

UEFA must be informed of the full facts of this case and pressed to insist the SFA move to promote Financial Fair Play in Scotland.

I believe only a grass-roots fans movement, similar to "Say no yo the newco" will be sufficient to end the myth that The Rangers is a club formed in 1872.

I am willing to use this blog to get such a movement up and running.

I have no pretensions to front or run such a campaign, others will be far better qualified and equipped than me to do so, but please, if you are a fan if any Scottish club and are willing to do anything to help get things moving, let me know.

I will do anything I can through this blog to start and promote a movement to end the myth that the club and company are separate and that The Rangers was founded in 1872.

Rangers died through apathy. Don't let their successor club win this propaganda war through apathy too.


Tuesday, 18 December 2012

What's In A Club?


There is a weeping, Rangers-shaped sore festering on the body of Scottish football today.

Like a gangrenous digit that should have been long since amputated, The Rangers Football Club has been allowed to infect the game with the stench of corruption and intimidation.

Refusing to take tickets for a Scottish Cup game at Tannadice because of perceived slights to their predecessor club, demanding apologies from clubs like Falkirk, Stirling Albion and Montrose whose fans refuse to recognise them as a club founded in 1872, The Rangers FC certainly looks and acts like Rangers FC.

It could all have been so different, if only the Scottish Football Association had applied its own rules when The Rangers Football Club applied to have the now-defunct Rangers FC’s membership transferred to it.

The SFA claimed at the time that The Rangers Football Club did not need the requisite three years’ worth of audited accounts, on the spurious excuse that it was seeking a transfer of Rangers’ membership, not a new membership.

It was an inconvenient truth that Rangers had not lodged audited accounts for the previous two years either. So inconvenient, it was ignored entirely.

The Rangers Football Club was allowed to join Division 3 when they should have been told to apply for the West of Scotland League.

Having given membership to a body which did not meet their own requirements for membership, the SFA have now allowed this new club to promulgate the myth that they are actually the dead club they replaced.

A fiction has been allowed to grow that in the case of Rangers FC, the “club,” and, “company,” are separate, and that only the company is in liquidation. The club, apparently, carries on, exactly as it did before.

In assessing the accuracy or otherwise of this claim, it is necessary to establish two thing:

1)      What, in law, is a, “club?”

2)      Given the requirement for holding a UEFA club license for our top-flight team, how do UEFA define a, “club?”

Information on the legal status of clubs in Scotland can be found here:

Clubs must be properly constituted.

They must have written constitutions which set out their purpose, how they will be run, how a committee is elected etc.

It must have a written record of a meeting at which it was decided to form a club, or a Memorandum of Articles of Association.

Clubs must hold at least an Annual General Meeting, and have a mechanism by which meetings can be called by members outside of this.

Finally, clubs must have adequate insurance to cover all of their activities.

If Charles Green’s “Rangers,” was founded in 1872, it should of course be an easy matter for Charles Green to produce records of the club’s agm’s going back to 1872.

He will be able to produce records of the club’s committee members going back to 1872.

He will be able to produce records of the club’s membership lists going back to 1872.

Of course, these will not be records pertaining to Rangers Football Club plc or Rangers Football Club Ltd, because the club and company of course are separate…

We all know Charles Green would be unable to do this, because such records do not exist.

Charles Green’s claim to have purchased Rangers FC (the club) though, rests on his having purchased the business and assets of Rangers Football Club plc.

He bought Ibrox Stadium, Murray Park, the Albion carpark, and the Rangers “brand.”

Clearly, Rangers FC (the club) as defined by Charles Green is NOT a club as defined in Scots law.

 

 

UEFA are very clear what a club is.


“A licence applicant may only be a football club, i.e. a legal entity fully responsible for a football team participating in national and international competitions…”

Under this definition, Charles Green’s, “club” cannot be a football club.

Charles Green’s, “club,” is not a legal entity. It is some real estate and a brand.

The Rangers Football Club Ltd (Charles Green’s “company”) on the other hand DOES fulfil the requirement for a UEFA license of being a, “legal entity fully responsible for a football team.”

Unfortunately, it is also a legal entity which is only some six months old.

The Rangers Football Club Ltd does not at this moment qualify for a UEFA club license, which is why it cannot at this moment compete in UEFA competition, or the SPL.

It does not qualify because it does not yet have the required three years of audited accounts.

When it does meet this requirement, The Rangers Football Club Ltd, as a legal entity fully responsible for a football team, will be able to apply for a UEFA Club License.

It will not though, be a legal entity founded in 1872, with a 140+ year history behind it.

Contrary to misleading reports emanating from STV journalists on twitter, UEFA have not, “confirmed,” that they regard The Rangers Football Club as a continuation of the club formed in 1872.

UEFA does not issues club licenses to the owners of “brands.” They issue club licenses to legal entities responsible for football teams.

Due to a mixture of avarice and cowardice, the SFA has allowed the fiction of the separate club and company to spread.

They have refused to either confirm or deny that they regard The Rangers Football Club as the same club as was formed in 1872.

For the record, none of our “clubs,” have actually been clubs for many years.

They started out as clubs in the late 19th/early 20th centuries, but as the game turned professional our clubs incorporated in order to facilitate the paying of players and protect members from becoming liable for debts incurred.

This means our clubs BECAME companies many years ago and ceased to be “clubs.”

Rangers Football Club was formed in 1872 and incorporated (became a company) in 1899. This year it entered liquidation.

The Rangers Football Club Ltd was formed in May 2012 as Sevco Scotland and purchased the business and assets of Rangers plc. It did not buy a single share in the legal entity that was Rangers Football Club.

With The Rangers Football Club bullying fellow Division 3 clubs who dare to state they are a newco, it is now time the SFA showed some leadership for once and put this argument to bed.

The Rangers Football Club cannot possibly be the club formed on Flesher’s Haugh in 1872 because the “club” and the “company” are one and the same, and the club formed in 1872 is now in liquidation.