History of Rangers F.C. - Ally McCoist and Insolvency

Ally McCoist and Insolvency

Smith's deputy and Rangers record goalscorer Ally McCoist was appointed manager of the club for season 2011-12. Hampered by a bizarre transfer policy under Whyte, Rangers found themselves knocked out of first the UEFA Champions League and then the UEFA Europa League by the end of August, depriving the club of income that may have been anticipated. With the new ownership there initially appeared to be some financial stability of the club. A number of first-team regulars were secured on long-term contract extensions including Steven Davis, Allan McGregor, Steven Whittaker and Gregg Wylde. However when McCoist entered the transfer market, his first signing being Almería midfielder Juan Manuel Ortiz, he soon encountered difficulties.

Rangers's first Scottish Premier League match of the season was a home match against Jim Jefferies' Hearts, where the league flag was unfurled by then chairman Craig Whyte, as Rangers were under considerable pressure for most of the first half but managed to salvage a draw. The following week, McCoist claimed his first competitive victory as manager with a win over St. Johnstone. The season proved to be a baptism of fire for McCoist, by early October the club held a ten-point lead over Celtic, and on 5 November the lead stood at fifteen points over Celtic and twelve over second placed Motherwell. However, a draw with St. Johnstone and subsequent defeats to Kilmarnock, St. Mirren and Old Firm rivals Celtic, who then went on a run of twenty-one matches undefeated saw Rangers slip to second place where the club remained for the rest of the season.

Ranger's European adventure began in the middle of the final week of July, where Rangers were defeated by underdogs Malmö 1-0 at home and Rangers crashed out of the Champions League with a bad tempered 1-1 draw in Sweden in which both Steven Whittaker and Madjid Bougherra were both given their marching orders, and ultimately relegating the Gers to the Europa League play-off round, where they faced Slovenian team NK Maribor. In cup competitions the club fair no better, a third round defeat to First Division side Falkirk in the League Cup and a fifth round exit at home at the hands of Dundee United.

On 13 February 2012, Rangers filed legal papers at the Court of Session giving notice of their intention to appoint administrators. Rangers officially entered administration on the following day, appointing London-based financial advisers Duff & Phelps as administrators. Rangers entered administration over an alleged non-payment of £9m in PAYE and VAT taxes to HM Revenue and Customs. On entering administration, the team was deducted ten-points by the SPL, a move regarded as 'effectively ending' its 2012 championship challenge. A failure then to submit accounts for 2011 meant the club was not granted a licence to play in European football in season 2012–13. In April it was revealed that the club's total debts could be as high as £134m.

On 13 May it was revealed that Whyte sold his controlling interest in The Rangers Football Club Plc for £2 to a consortium led by Charles Green. Green offered the creditors a settlement, in the fom of a company voluntary arrangement (CVA), in an attempt to exit administration. On 12 June 2012, it emerged that HMRC would reject the CVA put forward by Green. Green's takeover of the club depended on the CVA being accepted by HMRC, which would have seen only £8.5m of the total debt repaid. The formal rejection of the CVA, two days later, meant that the company The Rangers Football Club Plc entered the liquidation process and Rangers' assets, including Ibrox Stadium and Murray Park, were sold to a company called Sevco 5088 then transfer to Sevco Scotland Ltd which was renamed The Rangers Football Club Ltd at the end of July 2012, a consortium led by Green, in a deal worth £5.5m.

Ten of the other eleven SPL clubs voted against Rangers being admitted to the league for the 2012-13 season on 4 July 2012, leaving the club to applying for a place in the Scottish Football League, although it was not clear at that stage which division the club would be playing in, if any application for membership was successful. On 13 July, it was announced that Rangers would begin the 2012-13 season in Division Three after 25 out of 30 SFL member clubs voted for the club to be placed in this division.