Rangers on the brink as players reject wage cutsLONDON (AP) - Rangers might be forced out of business before the end of the season after its players refused to accept wage cuts on Wednesday, forcing the administrators trying to save the financially stricken club to hasten their search for a buyer.Rangers director Dave King claimed that defending Scottish champions are unlikely to emerge from bankruptcy protection, warning that "liquidation is inevitable."Even if a quick sale can be agreed, the parlous state of the finances mean that the 140-year-old club is unlikely to be ineligible to compete in Europe for the first time since the 1980-81 season."(There is) no realistic prospect of being able to the meet UEFA's financial criteria by the March 31 deadline," the administrators said.Talks with prospective buyers are planned for this week, but the administrators fear the team will not be able to complete the season unless it able to implement cuts of 1 million pounds ($1.6 million) a month.The wage-reduction agreement which was rejected by the squad would have limited any redundancies in return for cuts of 75 percent for the highest earners."The club is in a perilous financial situation and that should not be underestimated," joint administrator David Whitehouse said. "Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business."We understand the players' position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed."Manager Ally McCoist is due to be part of the discussions in the coming days with those prospective purchasers who have already declared their interest in buying Rangers."(If) it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost-cutting measures at the club," Whitehouse said.Rangers, which has won a world-record 54 domestic titles, was forced into administration last month after tax debts of 9 million pounds ($14 million) were accrued since Craig Whyte's takeover last May. The club is also awaiting a verdict from a tax tribunal due to long-standing contested liabilities of up to 75 million pounds ($117 million).Whitehouse, who is from restructuring firm Duff & Phelps, said they could be forced to implement "redundancies within the playing staff on such a scale that would materially erode the value of the playing squad.""We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale," he said. "However, no one should be in any doubt that in the absence of sufficient cost-cutting measures, or receipt of substantial unplanned income, the club will not be able to fulfill its fixtures throughout the remainder of the season."After being docked 10 points for entering administration, the club is 21 points behind Celtic and is set to miss out on lucrative revenue from the Champions League or Europa League."There is no realistic prospect of the club being able to fulfill its obligations prior to the March 31 deadline set by UEFA," joint administrator Paul Clark said.Clark fears the deadline will pass with Rangers either failing to emerge from administration, its accounts still needing to be signed off by auditors, UEFA unconvinced the club is viable, the tax bill won't have been cleared or that money owed is still outstanding.
I do see RVP leaving next year though. Especialy if they don't qualify for CL. No way he stays if they don't. They need to qualify and make some good signings to keep him.
I assume some of this posturing is to spur a quick sale of the club but this sounds ultra serious no matter what.
