Rangers In 'Perilous Financial Situation' Say Administrators

Rangers

The Huffington Post UK   First Posted: 7/03/2012 15:59 Updated: 14/03/2012 16:59

Rangers' administrators are hastening proceedings to sell the club after they failed to agree cost-cutting measures with squad members.

A decision on player redundancies has been delayed until Friday as the sale of the withering Scottish champions takes priority.

Duff and Phelps announced today that discussions have ended without a resolution, citing that it could have compromised the value of the business, as they strive to make savings to save the Ibrox club.

The delay in redundancies

Joint administrator David Whitehouse said in a statement: "The club is in a perilous financial situation and that should not be under-estimated.

"We understand the players' position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed. In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad.

Earlier today the Gers' second-biggest shareholder Dave King said he believed liquidation to be an inevitable fate for the club.

Players and manager Ally McCoist yesterday met Duff & Phelps representatives at the Murray Park training ground in a bid to agree on other wage cuts.

The administrators are pursuing previous owner Craig Whyte for £9m he contractually promised when he took over in May 2011, and lawyers acting on their behalf have already gained a court order to seize a preliminary £3.6m from Whyte's solicitors Collyer Bristow.

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