LORD NIMMO SMITH
Lord Nimmo Smith has been used in evidence in support of the notion that old Rangers FC survived liquidation. He said that a football club can exist separate from its holding company. Now we have the bizarre position where not only can a football club be separated from its history and its history be sold on (even if the club is subsequently liquidated along with its holding company), but a club can also exist without an owner. If the Manchester United Board decided voluntarily to liquidate Manchester Utd Plc then Manchester Utd FC would no longer exist, except in the minds of its supporters. To argue that Manchester’s history could be auctioned either pre or post liquidation defies interpretation in the real world of insolvency.
Lord Nimmo Smith was also wrong when he said that Rangers FC still exists. He was reflecting the view of the SFA who, we know, know Sweet FA, not least their own arcane humpty-dumpty rules. Dr Gregory Ioannidis, a leading authority on Sports Law, agrees that “the history of a club cannot pass from one company [into liquidation] to another”. The import of LNS’ claim was that the new Rangers FC could be punished for the sins of the old Rangers FC, if they were one and the same club. If he had maintained that claim and punished the Rangers currently plying their trade in the SFL then a court challenge would have immediately nullified that punishment on several grounds:
1) such a punishment would harm newco and newco had nothing to do with oldco.
2) The Rangers in the lower leagues is a new club (insolvency law saw to that) and, like newco, had nothing to do with the sins of old Rangers.
In the end, LNS strayed clear of punishing newco in any shape or form and, instead, levied a futile fine on oldco. HMRC, like Dr Gregory Ioannidis, and consistent with insolvency law, also recognise that newco has no connection whatsoever with oldco. Unlike insolvency law, LNS’ philosophical musings are not legally binding; nor do they set a legal precedent.
SFA MEMBERSHIP AND EUROPEAN FOOTBALL
When Charles Green bought the assets of Rangers FC Plc he also purchased the old club’s SFA membership and SPL share. Prior to liquidation, Rangers had full membership status within Scottish professional football. After liquidation, the club playing in SFL Division 3 was allocated associate membership status. The reason for that was very simple: the Rangers playing in the SFL was a different club than the one which previously played in the SPL.
Importantly, the new Rangers applied to join the SPL but their application was rejected, despite a mysterious 5-way agreement. If Rangers was the same club pre and post liquidation then an application would have been completely unnecessary, particularly since they claimed to purchase the old club’s SFA membership and SPL share. Of course, Rangers was legally dissolved after liquidation – hence the need for a fresh application from the new club. Similarly, the new Rangers then applied to join the SFL and this time their application was successful. Remember, if an existing SPL club changes ownership or its holding company changes from a Ltd to a Plc, it has no bearing on the club’s membership status and therefore there is no requirement to re-apply for SFA or SPL membership – it is liquidation that forces that event.
Furthermore, because Rangers post-liquidation is a new club, it is unable to compete in European competition for three years. It is a stipulation of UEFA that a licence to play in Europe can only be given to a club that has been a member of a national association for three consecutive years. The old Rangers did have a UEFA licence but the new Rangers do not. When Rangers FC expired, so did their UEFA licence.
The fact that the SFA has allowed The Rangers FC to pretend that their history is continuous, contrary to insolvency law, has no bearing on the facts of the case and will forever remain a stain on the SFA’s reputation.
WHO DID LIVINGSTON PLAY IN THE 3RD ROUND OF THE SCOTTISH CUP 2012/13?
The credit for this further piece of evidence on why Rangers FC is a new club belongs to Gordon Johnston:
http://gordonjohnston.wordpress.com...rovide-proof-that-the-rangers-are-a-new-club/
The third round of the Scottish Cup 2012/13 consisted of 16 ties between Scotland’s smaller clubs, after which, in the fourth round, the 16 top clubs from the previous season – 2011/12 – then joined the fray. The 16 top clubs included the 10 clubs in the SPL from season 2011/12 and the top four from last season’s SFL First Division: Ross County, Dundee, Falkirk and Hamilton Academicals. Looking at the SFL First Division from 2011/12 it is clear that Livingstone finished 5th and therefore should not be considered to be among the “16 top clubs”:
Position Team Points
1 Ross County 79, 2 Dundee 55,
3 Falkirk 52,
4 Hamilton Academicals 49
and 5 Livingstone 48.
Yet, Livingston got a bye into round four when they should have been playing in round three! Why? The regulations for last year’s third round were quite clear and ought to have excluded Livingston:
“The clubs which, in the previous season, were members of The Scottish Premier League and those clubs finishing in The Scottish Football League First Division league positions one to four, shall be exempt from playing in Round Three of the Competition.”
(
http://www.scottishfa.co.uk/resourc...FA_HANDBOOK_169-200_Cup_Competition_Rules.pdf)
The reason that Livingston got a bye was because one of the clubs in the SPL – Rangers FC – no longer existed. If they existed, irrespective of their current league or position in 2012/13, they would have been entitled to enter the competition in round four courtesy of the previous season’s placings. The SFA considered The Rangers FC to be a new club. Hence the creation of a spare slot, duly allocated to the team finishing 5th in the SFL First Division, i.e. Livingston.
CONCLUSION
The club formerly known as Rangers FC is as dead as a dodo. The new club masquerading as the old Rangers FC is just that: a new club masquerading as the old club. Unfortunately, when conclusive proof of the demise of Rangers FC is brought to the attention of Rangers fans, there is an apoplectic response: one is either deluded or a Rangers Hater, or both. Fortunately, insolvency law usurps personal insult.