Owner Craig Whyte claims he took the first step towards administration to ensure Rangers did not die altogether under the potential burden of a "shocking" £75million tax bill.
The club lodged legal papers signalling their intention to enter administration with the Court of Session in Edinburgh at lunchtime on Monday. The Scottish champions are awaiting the verdict of a tax tribunal which it was thought could cost the club around £49million if the judgment went against them, but Whyte revealed that figure was substantially out.
The HMRC case centres around the use of employee benefits trusts (EBTs) which were in place before Whyte took over from Sir David Murray last May. Whyte told Press Association Sport it was necessary to look at administration. He said: "If we hadn't done that then liquidation could have been a possibility."
Whyte added: "This secures the long-term future of the club. The £49million often quoted is the tax bill and interest but they can charge you a penalty on the tax bill so we could have been up at £75million. It is a shocking figure and there is no way we could pay it."
Whyte was heckled by some Rangers fans when he emerged outside Ibrox after 6pm to read a statement outlining his intentions.
The Motherwell-born businessman admitted it had been a "tough day" but insists he has no intentions of leaving the club.
"I can understand how the fans feel," he said. "But I came in to sort out the financial situation and that's what I will do. It has been a tough day. No one likes it but I am doing what has to be done. I would say to the fans to stick with (manager) Ally McCoist and the team, they need you more than ever.
"I have not gone through what I have gone through in the last year to walk away. I am here to stay."
Source: PA
