Rangers owner Craig Whyte used money from future season ticket sales to help fund his takeover of the Scottish giants, officials appointed to manage the club's finances revealed Tuesday.
A statement by Rangers administrators said part of the £24 million ($37.9million/28.6 million euros) raised in the Ticketus deal had been used to pay off a club debt of £18 million owed to Lloyds Banking Group last May.
"Since being appointed administrators last week there has been widespread concern raised with us, not least by Rangers supporters and season ticket holders, about the agreement between the club and Ticketus," joint administrator David Whitehouse said in a statement.
"Following information received, it is now apparent that the proceeds from the Ticketus arrangements amounted initially to a sum in the region of £20 million plus VAT.
"Subsequently, £18 million was transferred to the Lloyds Banking Group."
The statement added: "The application of the remainder of these proceeds is subject to further examination."
"We are now investigating all the circumstances surrounding both the purchase of the majority shareholding in Rangers Football Club plc and the flow of funds which stemmed from the transaction and were intended to fulfil the purchasers' obligations at the time of the sale.
Whyte said in a statement he had entered into the deal following a proposal from corporate advisors.
"The Ticketus deal was by far the best way to protect the club given the circumstances in that they have no security over any assets," he said.
"The only person at risk from the deal is me personally because I gave Ticketus personal and corporate guarantees underwriting their investment; the club and the fans are fully protected."
Scottish football has been reeling since Rangers were placed in administration last week following the non-payment of around £9 million in taxes since Whyte's takeover of the club in May 2011.
The Old Firm side were immediately docked 10 points by the Scottish Premier League to all but end their hopes of clinching their fourth title in a row.
Administration is the process whereby a troubled company calls upon independent expert financial help in a bid to remain operational.
Rangers are also awaiting the verdict of a tax tribunal that could leave the 140-year-old club with a bill of up to £75m , according to Whyte.
Source: AFP
