Rangers chairman Whyte upbeat despite tax threat

01 December 2011 18:46

Rangers chairman Craig Whyte has tried to reassure fans about the club's financial position despite the threat of a massive tax bill and revelations about his own history as a director.

Although the Scottish champions published accounts Thursday revealing a near 50 percent reduction in net debt to £14 million ($22 million) in the 12 months to June 30 they could, if they lose a court case with British tax authorities, be hit with a bill for £49 million ($77 million).

Rangers, while publishing their figures, also said that Whyte was "disqualified to act as a director of Vital UK Limited in 2000 for a period of seven years".

Scottish Football Association chief executive Stewart Regan said: "We have been in dialogue with the club on this matter and in light of today's (Thursday's) developments have requested clarification by return.

"We await disclosure of key information before we can make any further comment."

The revelation about Whyte's past had been contained in a BBC documentary broadcast in October, a programme that led the Rangers chairman to take legal action against the broadcaster.

Whyte, who took over David Murray's majority shareholding, said: "I firmly believe the changes I have implemented will be in the longer-term interest of the club, which must always come first.

"Perhaps the biggest change that has been effected since the takeover in May has been the repayment of all bank borrowings.

"The club is no longer reliant on bank funding, nor does any bank control our operations on a daily basis.

"I hope fans would share my view that, looking ahead, the club should do everything to live within its means and operate on a commercially viable basis. I firmly believe that is the only sustainable, long-term strategy for Rangers."

The tax tribunal that could deal Rangers a huge financial blow is due to resume in January.

Whyte, who has not ruled out the possibility the Glasgow giants could enter administration, said: "The club remains embroiled in historical tax issues with Her Majesty's Revenue and Customs, primarily the tax tribunal on Employee Benefit Trusts.

"It has been a dark cloud hanging over the club for far too long and any resolution must enable the club to move forward.

"Rangers has never been short of challenges in recent years and there is no question there are many challenges ahead for both the club and Scottish football in general.

"However, I am certain that, as a club, we can rise to these challenges and deliver success both on and off the pitch. That is what Rangers is all about."

Source: AFP