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Administrators at Rangers issue stark warning

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08 Mar 2012 16:17:07

Administrators at Rangers issue stark warning

Administrators have warned of "significant" redundancies at Rangers on Friday if a final round of talks with players over wage cuts fails to end in agreement or they are unable to make progress in finding a buyer for the club.

Discussions were also resuming on Thursday afternoon between administrators Duff and Phelps and some players' representatives. The Rangers squad have agreed in principle to a series of structured wage cuts of up to 75% but joint administrator David Whitehouse said on Tuesday night they had been unable to agree to "personal conditions sought by the advisors to the players".

However, it is believed that the main condition some players were looking for was a guarantee that no workers at Rangers would lose their jobs if they agreed to the cuts. It is also understood that planned meetings with players' agents on Wednesday morning were postponed at short notice by the administrators.

Duff and Phelps are now attempting to push through a quick sale of the club after warning Rangers were in danger of not finishing the season. Whitehouse told Sky Sports News: "Our position at the moment is that we are still in negotiations with the players. The players know what needs to be done. We can deliver that funding gap purely by wage reductions.

"Over the last two days we have also been speaking to interested parties to gauge the extent to which we can bring those discussions forward to deliver an earlier sale of the business in a timetable that would minimise redundancies.

"We will have a discussion with the players tomorrow when we know what timetable we could work with and, against the backdrop of that, we would be able to determine what level of redundancies would then need to be made.

"But at the same time we are still hopeful the players will deliver what they were hoping to deliver on Tuesday evening. We need to know if we have an ongoing funding structure otherwise we will make significant redundancies within the playing staff."

The administrators want to secure £3.6million which was held in an account belonging to club owner Craig Whyte's London-based solicitors and they welcomed a decision by the High Court on Thursday to order a further hearing on the matter on March 30.

Whitehouse said in a statement: "If we are successful in retrieving these funds that will help the recovery process of the club and will be an important step towards the club emerging from administration. No one should be in any doubt however about the overall financial situation of the club and every effort is being made to ensure its survival.

"We are continuing to meet prospective purchasers over the next few days. This does not mean that the club has to be sold within the next 24 hours - we are establishing how quickly we can get to that point."


PA

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