Resolution 12: The Full Explanation. Part One

A lot of the replies on the various forums lead me to think that the matter of Resolution 12 is being clouded by a couple of things. Dotted amongst the opinions are replies which indicate that not everyone knows exactly what its all about.

Lets see if we can put that right.

But first, what we need to do is to go back and view the initial events in the context of Spring 2011.

The David Murray era is all but over at Rangers. There is much rejoicing on the green side of the city, and sales of jelly and ice cream are going through the roof. Everyone with any sort of intelligence knows that the famous old Ibrox club is about to die. Not as many people are upset about that as what you might think.

Sure, its a famous old club, with a lengthy and successful history, but there are one or two things associated with it, if largely ignored by the mainstream media and the authorities, that means most of us won’t miss it.

But, at a time when Scottish football is struggling to raise money from external sources, the prospect of one of only two big earners collapsing is met with dread in the offices of the SFA, wh are responsible for the running of the game in Scotland, from grass roots all the way up to international level. Like any organisation, they jealously guard their interests.

Losing a major source of revenue sent them into a bit of a panic, it seems, and as we know, their chief , Stewart Regan , predicted that we would see “social unrest ” , a statement which showed that he’d been listening to those within the walls of SFA offices, and showed that he would do whatever it took to save the club.

It also perhaps showed that he was worried that  if the Ibrox club, sorry, when the Ibrox club collapsed, there could be all sorts of questions fired at him. Questions such as how he could possibly have allowed one club to borrow money it could not afford unchecked , or how the players and other staff were paid without the conventional payment of taxes owed on their salaries.

If he was unsure of how all that worked, he could have popped over to see his SFA colleague, Campbell Ogilvie, who could have told him anything he wanted to know about how the EBT system of remuneration worked.

And any potential problems with them.

As it stood before Craig Whyte, the off the radar billionaire, rode into town, Rangers were dead in the water, and Murray was culpable of negligence in the extreme. His bank had changed owners, his friendly manager had buggered off, and the new guys wanted their money back, which in turn led to Murray frantically trying to find someone else who would take the club and its massive debt off his hands.

In the end, he sold it for a shiny pound to shiny Craig , who then promptly borrowed money to pay the bank and get them off his back. The loan was secured against future season book sales, the one substantial source of income that Rangers could pretty much depend on.

With millions of pounds potentially owed dependent on the outcome of one HMRC investigation and prosecution, Whyte also had to deal with another, known as the Wee Tax Case, as it was only a few million, and not a couple of hundred million.

And anyway, the major difference is that the wee tax case was a liability, and not, as in the case of the Big Tax Case, a potential liability.

You see, if you want to participate in Europe, you cab have a potential liability, but not an actual one.

They’re rather strict on that sort of thing, and will not allow any of their European competitions to be soiled by a club which owes money to their Government in taxes.

In March 2011 Whyte had yet to take over at Rangers. His tenure started in May.

Our story starts in February of that year..

23 February 2011   HMRC letter to Rangers FC.

21st March 2011    Note on a spreadsheet by Donald McIntyre accepting liability for tax overdue from 2001/02 had payment been made by the normal PAYE route and subject to PAYE terms from 2000/01 to 2002/03..

22 March 2011.   A meeting of takeover parties where it was reported

“Discounted Option Scheme – £3.2m PAYE liability to be paid to HMRC prior to 31/3. PB”  

In March 2011 Rangers had a tax liability dating back to 2001/02.

And they accepted that. Therefore at this stage, they would not have been allowed to participate in the following years champions League.

If anyone told UEFA, that is. In particular, if the SFA told UEFA. Which they can only do if Rangers tell the SFA.

You see, its a little more complicated tha “they cheated and they covered it up for them.

You are also probably on the point of seeing why its taken so long to get anywhere.

30th March 2011   A report submitted to SFA Licensing Committee which, according to an e mail of 7th December 2011 from Stewart Regan SFA CEO to Andrew Dickson*, Football Administrator at Rangers FC and a member of the SFA Licensing Committee in 2011 said

In light of persistent speculation across all media, the Scottish FA would like to clarify the position in regard to Rangers FC’s licence to play in Europe as governed by Article 50 of the UEFA Regulations. It is noted from the report submitted to the Licensing Committee by Rangers FC’s advisors Grant Thornton UK LLP, dated 30th March 2011, that: “
“All the recorded payroll taxes at 31 December 2010 have, according to the accounting records of the Club since that date been paid in full by 31 March 2011, with the exception of the continuing discussion between the Club and HM Revenue and Customs in relation to a potential liability of £2.8m associated with contributions between 1999 and 2003 into a discounted option scheme. These
amounts have been provided for in full within the interim financial statements.”  

Now we have another player on the scene, Grant Thornton UK LLP.

Notice the liabilty, which Donald McIntyre accepted above, has become a potential liability, which means the Ibrox club are good to go for Europe, and all the financial benefits it brings, which is handy , because boy are they skint.

Had it actually been a liability, then Europe is off the agenda.

 

So, at this point, Rangers are effectively telling the SFA that they do not have an actual liability.

Move along, nothing to see here.

As the SFA have to take these submissions on trust, its surprising that the media, who had at this stage, got wind that something wasn’t quite right didn’t dig further.

Actually, no it isn’t. Not in Scotland.

To this Regan then added the following justification for granting the licence:

Since the potential liability was under discussion by Rangers FC and HM Revenue & Customs as at 31st March 2011, it could not be considered an overdue payable as defined by Article 50.

We are satisfied that the evidence from all parties complied with Article 50 and, on that basis, a licence was awarded for season 2011-12.

However, the story takes a twist when the postman arrived at Ibrox in May…

5Th May 2011 a letter from HMRC that confirmed Rangers had accepted the liability for sums owed to HMRC on 21st March 2011 and saw no grounds for appeal but that HMRC had agreed to await developments regarding a potential takeover, but now wished to resume collection proceedings.

5th May E Mail from Mr McIntyre Rangers to HMRC stating that he had had discussions with HMRC on 21st March.

Neither of the above exchanges between the same individuals suggest that HMRC and Rangers FC had reached an agreement to extend the deadline for payment that complies with UEFA FFP Article 50 and Annex VIII. Such an agreement had to be in writing, signed by HMRC and be dated prior to 31st March 2011 to allow the overdue tax to qualify as exempt from being treated as an overdue payable.

The argument that as soon as Rangers FC accepted the liability on 21st March 2011 that an overdue payable existed is supported by the Giannina case in 2013 where the Court of Arbitration on sport (CAS) found in favour of UEFA, who had refused Giannina a licence in circumstances very like those in 2011 at Rangers, the CAS did not focus on collection but on the Giannina admission that tax money prior to the 31st December was owed and that no written agreement to postpone was in place at 31st March. Note also that it is insufficient to take actions with a view of obtaining a deferral.  

In May, Rangers got the letter from HMRC which confirmed they had an actual liability.

Should they have told the SFA, bearing in mind they needed the money from Europe to keep the lights on, or even to pay this debt off ?

Did they tell the SFA ? Did the SFA tell UEFA ? Who is that masked man? -oh wait, wrong story.

Theres much more to come, but I want these initial events to be read and digested before we move on.

You’ll have to wait until tomorrow, I’m afraid, because I’ve got to take the dog out.

 

( authors note. I have seen all of the documents mentioned above. This is my interpretation of events based on those documents. You’ll have to take my word for it that I have recorded it faithfully and without bias. )

 

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Monti
4 years ago

Fuck the dug, give us part two!
🙂

Boyne Bhoy
4 years ago

Nice clear exposition. Going to call you Basil from now on

schoosh71
4 years ago

So if the SFA has nothing to hide they won’t mind an independent adjudicator having a look at the intricacies of this case, Namely the Court of Arbitration for Sport. I’m sure the board waited deliberately waited til the case was time banned out of any action from UEFA, before they called the RES 12’ers ‘bluff’, there can only be one conclusion and that’s collusion and that is unforgivable. HH

Admin
4 years ago

This “Everything on trust” is like building on quicksand.

We are already seeing issues with “we just trust folk to tell us” regards the child abuse in football scandal too

The SFA…not fit for purpose, UNLESS, like them you define your purpose as one of Self Preservation and retaining the status quo. Which of course means:

Masonic Cabals
Elevation beyond ability
Lack of Due Diligence
Absence of Professionalism
Non adherence to rules and legislation
Clandestine meetings and agreements
Officials who answer to no-one but inner circles

Its all Junkets, Jackets and Just Fuck off Timmy and always will be now that instead of rallying against the Establishment, WE HAVE BECOME THE ESTABLISHMENT

mike
4 years ago

Oh what a tangled web we weave,
to hide the truth and to deceive.
Conclusion, a scabby shower of cheating *****.

Monti
4 years ago
Reply to  mike

Cunts?

Ken

mike
4 years ago

Star of wonder shining bright,
make our board come see the light,
make them do all that!s right,
to come before us not to ignore us,
cant they see our pain and plight,
make them take up our righteous fight,
and drop the SFA right in the shite.
They might take our dosh,
but they will never take our Celtic.
Long live “The Bunnet”
Ralphy yoo ARE Da Mahn.

Jim wood
4 years ago

Sorry sir, I know these are are complex issues and I have tried to stay on top of them but all the explanations just become protracted and long winded. You all fight this for the sake of justice, for that you should feel proud. Perhaps if someone could condense these two part articles more of the rest of us would understand. I mean no offence by this comment. I am a Celtic supporter and I always suspect the football authorities in Scotland of connivance in these events.

Monti
4 years ago
Reply to  Jim wood

Jim,
Do you want a fucking drawing?

Iantm
4 years ago
Reply to  Monti

Jim are you Steerpike in disguise? 😉

Monti
4 years ago
Reply to  Iantm

Now there’s a fucking name from the past!

Iantm
4 years ago
Reply to  Jim wood

Jim Wood, it boils down to ONE simple issue.

RFC had an admitted Tax Liability outstanding and admitted.

To Qualify for the Euro Licence RFC should have had a Letter of Deferment from HMRC for the Outstanding Liability. In their submission for the Euro Licence such a letter should have been provided to the SFA… Show us the Fecking Letter. 😉

The SFA have muddied the waters because HMRC agreed to wait for the Takeover to finalise because the new owner, Craig Whyte had accepted the liability in return for a reduced purchase price… The Famous ONE POUND.

jay beer
4 years ago

Thank you, it clears up a few pointers for me!
In any normal country its MMS would have been all over this story like a rash……
Shame on ‘our’ journalists, l use that term loosely, for the cover up.
And the new mob still claim to have bought the dead club’s history, further shame on those journos for collusion!
Roll on liquidation number2! HH

Rob O'Keeffe
4 years ago

I agree with Monti.Ive been telling everyone since Saturday that wait till Mon ,Ralph is coming out with huge revelations,it’s going to cause bedlam etc.What do we get?An old history lesson and someone taking their mutt out rather than deal a straight hand to all us Bhoys and Ghirls waiting.Lets get this moving with much greater speed and get it spread throughout the football community and media.KTF

Monti
4 years ago
Reply to  Rob O'Keeffe

Rob,
I wasn’t actually meaning that Ralph was to have sex with his dog before giving us part two.
Although it is his choice!!
🙂

4 years ago

That is excellent Ralph thank you.
Makes it all clear and easy to see that the sfa are crooked bastards and not fit for purpose.
Worse it shames our board,and every other club who were denied their rightful place in Europe that season. Much appreciated and thanks for an excellent read once again.
HH

Monti
4 years ago
Reply to  jimmybee

Absolutely!

Monti
4 years ago

‘Mon the Hoops tonight anyway, just keep winning Celtic!!

4 years ago

So what are the Celtic board saying about this? Do they recognise this as corporrate malfeasance by the SFA in collusion with Old Rangers and the Newco. Or do they not accept that there is anything wrong with this. I fully understand what happened as do most Celtic supporters but what are the board saying about this? We don’t hear anything. Should the boards of Celtic, Aberdeen, Hearts, St JohnStone and all other clubs, not just those who may qualify for Europe not issue a joint statement/individual statements stating clearly that this has happened, we know it was against the rules but it can never happen again. It is just about to happen again. Surely Aberdeen and Hearts are all over this as well. It effects them more than us after all.

Monti
4 years ago
Reply to  john

” malfeasance ” lol

jpm 88
4 years ago

Bit off Res 12 topic , but ,

” the prospect of one of only two big earners collapsing is met with dread in the offices of the SFA ”

I don’t recall the scent of that feeling emanating from the offices of the SFA in 1994 !

4 years ago
Reply to  jpm 88

Think they were too busy down the ludge shaking hands, and doing the Hokey Cokey.
HH

mike
4 years ago
Reply to  jimmybee

HA HA Jimmy a good description.

mike
4 years ago
Reply to  jpm 88

Weel jpm88,I tend to agree it!s the only sane reason that i can equate to this corrupt situation,look around the stadiums when the two teams are not visiting,they are EMPTY.
Mibbee if they started playing ALL games at 3.00 pm every Saturday then attendances might grow.
” The Bunnett” We could have liquidated the club in 1994 but we knew that the support would not stand for that,how true that was.
Since “The Bunnett” Rankers knew that they could not compete on a level playing field.
Mibbee it the SFA got of there arse and brought money into the game,things could improve and they would not have to rely on just two clubs.
Well done Mayonaise.

jpm 88
4 years ago
Reply to  mike

Hello there mike ,

hope you’re keeping well

HH

mike
4 years ago
Reply to  jpm 88

Indeed i am,with the emphisis on the In bit,no the deed bit,thank you for asking,i was wondering last week where you had got to,rumour has it yoo left the Tic.and switched to Man. Shitty,naw couldnt be possible,once a Tim always a Tim.

H.H.

jpm 88
4 years ago
Reply to  mike

Could never leave the Celtic mike , cause the Celtic never leaves you .
Hadn’t posted for a wee while due to a bit of the disillusion similar to what Ralph felt on Saturday.

As for , as you say man shitty , my daughter was at the Celtic game there , and by all accounts they’re a right bunch of fucking huns.

As some have said on here , we can’t give up on either Celtic , or on looking for and calling out cheating when and where we smell it .
HH

mike
4 years ago
Reply to  mike

Its in our Hearts jpm,i always said that if you cut me open the hoops would be there inside,just like a stick of rock,but no as thick.
The problem is tho not many supporters care about the cheating,as long as they get to the games.
Bhoys like Ralphy and the Res.12 bhoys and some on blogs are all that really care,but we MUST make sure that this can never happen again.
Take care have a great Christmas and 2017.

jpm 88
4 years ago
Reply to  mike

Hi mike ,

yes , I get the feeling that there are too many who just want to get on with things and forget about the past cheating ; though they should cast their minds back to 1997 and how they felt when they watched cheating equal our 9 in a row .
Also they should bear in mind that through cheating there was nearly no game for our fans to be going to post 1994 ; dwelling on those memories SHOULD focus their minds.

Anyway , another win tonight to keep the zombies raging 🙂

have a happy and safe Christmas and New Year

broxburnbhoy
4 years ago

Thanks again Ralph. When we look at this what we see is very different from what the other clubs, SFA and Celtic Board see. The rout cause of the silence and disinterest is money and the inability to conceive of a financially healthy league without a version of Rangers and their large ugly support. It’s that simple. Our Board unfortunately sees it that way too. The others weigh up the situation in terms of revenue from four games a year with sevco and the various cash streams that brings in from gate, food, beverage and TV. They are financially afraid to dump sevco like they were to dump Rangers. Of course this is a nonsense as everybody survived and thrived just fine when sevco were in the lower divisions. I would say to all clubs be bold and call out unethical behavior and agreements. Reject them and dump sevco!

Pensionerbhoy
4 years ago

Ralph,

Thank you for helping to make things simpler. Having followed Res12 on various sites, one thing is clear, the time lines and legalities are far from simple. In fact, there are more twists in the legalities than in my wife’s bra and more conflicting dates than I have had birthdays. So, those who expect sexy results should know that a straightforward answer to what appears to be a fairly simple question could resolve the issue in favour of the SFA and UEFA.

However, it is in convoluting a simple question that the SFA and UEFA to a lesser degree, create suspicion and increase existing paranoia. Such equivocation convinces the onlooker there was a case of maladministration at best and downright cheating at worst. The lack of investigative journalism by the SMM only adds to the mistrust of all parties. This is such a serious issue for Scottish football one would expect a normally rapacious press to be ripping it limb from limb. Instead of a media earthquake there was hardly a tremor. Why then, would any affected person not have grave concerns about the whole affair?

Finally, surely the Celtic board cannot play the SMM role too. To remain silent when there is so much dodging the issue going on is to either hide one’s head in the sand or to be complicit in what is happening. Any half decent football fan wants to know the truth for the sake of the game. No club’s board can claim to be fan centred when it stands by and allows the grave doubts to continue, how much less then can it claim to be a guardian of its own rights and the integrity of Scottish football.

Today’s caption suits the occasion, nothing, just like the Celtic board’s response.

H H

Pensionerbhoy
4 years ago

Ralph,

Great stuff. I a commented but I think the SFA arranged for it not to be published.

H H

Rebus67
4 years ago

Ralph,

Great summary of events. Now here is a scenario that our Board may see. Rangers duped the SFA by indicating that the wee tax case was a potential liability, not an actual. The SFA acted in good faith and granted the licence. Who is at fault? Clearly RFC are. What is to be gained by pursuing that since RFC are burst. There can be no financial compen from that culpable source. The only beneficial outcome for Celtic would be to name and shame a defunct organisation. From the perspective of the Board, is it worth the candle?
Tin hat on!

Rebus

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