Where transparency exists accountability inevitably follows.​

This is an extract from a post on SFM from 2015. The subject was Transparency and Slow Glass

The message then was that football governance has to catch up in realising that football has to become more transparent in its dealing with supporters and so more accountable to them.
That transparency is already here via social media because of the ability to share, but the light of truth is constrained by Slow Glass.
Slow Glass from a short story by Bob Shaw slows down the light passing through it.
http://en.m.wikipedia.org/wiki/Light_of_Other_Days
In the story and others, you have Slow Glass of different thickness in terms of the time it takes for the light to emerge.
You have Glass a day thick/long to Glass ten years thick/long and more.

Resolution 12, if measured from the Celtic AGM in 2013 when it was tabled and adjourned, has taken 6 years for the light of truth to emerge, although it could have happened sooner had main stream media removed the dust of PR that slows the light, but light is inexorable and it is emerging at an archive of events since 2011 that can be read at

https://www.res12.uk/ 

It is in two parts.

Part One relates to events in 2011/12 including a very interesting link between UEFA Licence 2011 and the commissioning of Lord Nimmo Smith to investigate use of EBTs with side letters by Rangers FC where non-disclosure benefited Rangers FC in 2011 AND 2012.

Part Two concentrates SFA activity (or lack of it) from 2014 to date as result of the adjournment of Resolution 12 in November 2013 that provided shareholders with the authority to seek answers.
The archive has been constructed in chronological sequence to help readers understand better the detail and separate what took place in 2011/12 which is in the past, from the SFA handling of shareholders legitimate enquiries from 2014/15 to date, which remains current and is a mirror of SFA performance in respect of the national football team.
Many narratives will emerge as a result of the transparency, some Celtic related, but a system of governance, that is accountable in some way to supporters as stakeholders in the game, can only benefit the supporters of all clubs and they are encouraged to read through the archive.

As Phil Mac Giolla Bhain has written here in respect of Celtic and the SFA

Resolution 12 information on new website

accountability has to be the outcome of transparency to wipe the face and soul of Scottish football clean.

How that is achieved will be up to Scottish football supporters everywhere to take forward via their Associations and Trusts, in collaboration with the clubs they support, but it does seem to me, and I know others with more legal experience, that the SFA would find it difficult to resist a challenge to their refusal to engage with people (in this case minority shareholders of member clubs) who are affected by decisions that they make.

Why the SPFL Decision to Deduct Points from Clyde FC For An administrative Error is Raising Eyebrows In Social Media and Encouraging Dancing Around The Lord Nimmo Smith Elephant in the Main Stream.

It was reported in the news that Clyde have been deducted points for fielding an ineligible player in two matches, news that has raised supporter eyebrows when a comparison is made with SFA and the then SPL treatment of ten years of imperfect players registration by the then Rangers FC and caused a bit of dancing in main stream media around the LNS Elephant.

When the existence of side letters that formed part of a players remuneration contract was revealed in March 2012, it prompted an investigation by the SPL into the eligibility to play football of players who had been provided side letters by Rangers FC that indemnified them from any loss should the ebt schemes , through which their main remuneration flowed, be deemed unlawful by HMRC.

The issue for the SPL then was were those players properly registered under SPL rules?

The common belief held until then being that incorrect registration made a player ineligible to play and any game an incorrectly registered player played in was void:

1. Presumably on the basis the errant club had gained an on field advantage from incorrect registration and/or
2. to act as a deterrent to clubs to deliberately conceal full registration details from the football authorities.

The result of games in which such a player played was treated as a 0-3 defeat and the 4 points gained deducted and 3 points each granted to their opponents.

To get answers the SPL, after seeking evidence of side letters accompanying any type of EBT from Rangers FC, established the Lord Nimmo Smith (LNS) Commission to identify if a breach of registration rules had occurred and what were the consequences in sanction terms.

It is interesting therefore to compare the following from the LNS Commission in respect of sanctions against Rangers FC for a breach covering ten years of incorrect registration with the sanctions against both Clyde FC over 2 games and Hearts over one game, based on what Lord Nimmo Smith said in his findings at 107 and 108 of his Decision.
Findings that 7 years later have caused social media eyebrows to raise to Roger Moore levels because of apparent contradictions arising from the justifications given for a financial sanction only in the LNS Decision.

LNS Decision basis 107 /108

[107]
We nevertheless take a serious view of a breach of rules intended to promote sporting
integrity. Greater financial transparency serves to prevent financial irregularities. There is insufficient evidence before us to enable us to draw any conclusion as to exactly how the senior management of Oldco came to the conclusion that the EBT arrangements did not require to be disclosed to the SPL or the SFA. In our view, the apparent assumption both that the side-letter arrangements were entirely discretionary, and that they did not form part of any player’s contractual entitlement, was seriously misconceived. Over the years, the EBT payments disclosed in Oldco’s accounts were very substantial; at their height, during the year to 30 June2006, they amounted to more than £9 million, against £16.7 million being that year’s figure for wages and salaries. There is no evidence that the Board of Directors of Oldco took any steps to obtain proper external legal or accountancy advice to the Board as to the risks inherent in agreeing to pay players through the EBT arrangements without disclosure to the football authorities. The directors of Oldco must bear a heavy responsibility for this. While there is no question of dishonesty, individual or corporate, we nevertheless take the view that the nondisclosure must be regarded as deliberate, in the sense that a decision was taken that the sideletters need not be or should not be disclosed.

No steps were taken to check, even on a hypothetical basis, the validity of that assumption with the SPL or the SFA. The evidence of Mr Odam (cited at paragraph [43] above) clearly indicates a view amongst the management of Oldco that it might have been detrimental to the desired tax treatment of the payments being made by Oldco to have disclosed the existence of the side-letters to the football authorities.

[108] Given the seriousness, extent and duration of the non-disclosure, we have concluded that nothing less than a substantial financial penalty on Oldco will suffice. Although we are well aware that, as Oldco is in liquidation with an apparently massive deficiency for creditors (even leaving aside a possible reversal of the Tax Tribunal decision on appeal), in practice any fine is likely to be substantially irrecoverable and to the extent that it is recovered the cost will be borne by the creditors of Oldco, we nevertheless think it essential to mark the seriousness of the contraventions with a large financial penalty. Since Issues 1 to 3 relate to a single course of conduct, a single overall fine is appropriate. Taking into account these considerations, we have decided to impose a fine of £250,000 on Oldco.

Compare this with the Clyde FC case where ineligibility was admitted from the outset so there was no question of dishonesty yet they received a sporting sanction in form of a points deduction, whilst Rangers avoided such a fate on account of the Bryson interpretation that meant that a player whilst not fully and correctly registered was nevertheless eligible to play until the errors were discovered.

What Clyde FC said in their defence of their error was

“We are deeply disappointed with the outcome of yesterday’s hearing as, despite the fact that we admitted the breach of the SPFL rules, we feel that we put forward a robust and cogent case as part of our defence. The case concerned a player, Declan Fitzpatrick, who has been registered with Clyde since September 2018 and was recently on loan at Clydebank.
“The breach occurred as a result of a genuine oversight and a gap in the administrative procedures. This error was not the fault of any individual.
“We feel that the sanction imposed was unprecedentedly harsh.

The result of Clyde honestly admitting to an administrative error was a twin football and sporting sanction of £1500 and 4 points deduction for being honest.

Hearts had a similar administrative error defence when they said:

“ Due to an administrative error on the club’s part at the end of the January transfer window, Andrew Irving entered the field of play in the 65th minute as an unregistered player. Andrew was given an extension contract in January, 2018 and his extension paperwork was all properly completed and in order. However, it was not loaded onto the online SFA registration system at the time. His official registration, therefore, ran out on 9th June, 2018. Unfortunately, this was not picked up in advance of last night’s game.”

Hearts, as a result of their honesty, were deducted two points and fined £10k.

Yet in the case of Rangers FC, LNS judged the decision to withhold side letters was deliberate and because, as a result of non-disclosures of evidence to the contrary, he was able to decide there was no question of dishonesty.

The size of the penalty £250k recognised the longevity of what he was able to treat as an administrative error, but because LNS treated it as such and because the SFA advised that a flawed registration, apparently even if deliberate dishonesty was the reason for that flaw, was accepted by a blindsided SFA, then a player was eligible to play and so no points deduction sanction was applied.

The question of the validity of a deliberate and dishonest registration was never address by LNS although he did say in para 88 of his decision:

“There may be extreme cases in which there is such a fundamental defect that the registration of a player must be treated as having been invalid from the outset. But in the kind of situation that we are dealing with here we are satisfied that the registration of the Specified Players with the SPL was valid from the outset, and accordingly that they were eligible to play in official matches.”

What exactly constitutes an extreme case?

Had LNS seen the HMRC letter of 23 February 2011 or the HMRC letter of 20th May 2011 (that incidentally should have been in the SFA’s hands immediately on receipt under UEFA FFP rules before UEFA were notified of clubs granted a UEFA licence in 2011) would he have been duty bound to consider if a fundamental defect had taken place?

In those letters HMRC justified their pursuit of the wee tax case liability of £2.8M under their Extended Limit rules on basis that when they sought evidence of side letters for DOS ebts in April 2005, Rangers had responded dishonestly and that on sight of that response Rangers QC Andrew Thornhill advised them in early March 2011 not to appeal.

Does that evidence, which was not disclosed by Rangers Administrators Duff and Phelps to then SPL lawyers in April 2012, not point to such a fundamental defect in registration that a player’s registration should be regarded as being invalid from the outset?

However regardless of the rights or wrongs in the construction of the LNS Commission and subsequent Decision based on that construction, the salient point is that Clyde FC and Hearts were deducted 4 points and 2 points respectively, after both admitted to an honest mistake in their registration process and both received twin financial and sporting sanctions. Why Hearts were not deducted the 3 points gained as a consequence of beating Cove Rangers is unclear, although a 3 point reversal would have made qualification out of the group impossible.

Hearts were able to overcome the effect of the two-point deduction and still qualify for League Cup final stages so are unlikely to want to revisit the SPFL decision of points deducted.

However a £10k fine for an honest mistake in one game might be worth appealing on the basis that if a £250k fine for every match Rangers fielded incorrectly registered players was apt in the circumstances that LNS was led to believe existed that on a pro rate back of a fag packet basis this amounts to £695 per game over 10 seasons of 36 games a season, a £10k fine is excessive but would Anne Budge budge?

Anyhoo lets compare the three cases to highlight why eyebrows were raised.

Clyde FC

• honest mistake admitted – financial sanction and points deduction

Hearts FC

• honest mistake admitted – financial sanction and points deduction

Rangers FC 

• Deliberate decision taken not to fully register a player’s details with SFA.
• Evidence of dishonest motivation to not fully registering a player registration concealed by Rangers
• financial penalty but no points deduction.

It was always going to be the case that what took place in 2012 under the cloak of the Lord Nimmo Smith Commission would unravel in time as it set a precedent that flew in the face of sporting integrity principles and a common held belief that incorrect registrations attracted a sporting sanction, a belief rekindled by the recent decision to deduct points from Clyde FC.

Perhaps there is a rules based difference that justifies the LNS Decision that can be used by the SFA to explain to the common man why no sporting sanction was applied, but what the common man will ask is it more or less likely that in light of the LNS Decision clubs will be honest with the SFA in future if a player falls foul of the registration process or will appeal on the basis that LNS set a precedent against which all clubs should be judged and then sanctioned.

In a nutshell if an honest mistake is admitted how can a points deduction be justified unless the SFA can show the mistake was a deliberate one carried out by a club to give them a sporting advantage.

The LNS Commission was always a can of worms waiting to be opened which is probably why the SFA rejected the SPFL’s request of September 2017 to revisit the SFA handing of Rangers use of ebts and side letters. Have the SFA introduced a moral hazard in the form of the LNS Decision that will continue to undermine the integrity of Scottish football as long as they allow it to?

Oh what a tangled web we weave eh?

For those following the games, rooting for their favourite teams and feverishly discussing their matches between two glasses of ale, football is a mix of entertainment and something to be excited about. These fans are, in turn, a massive customer base for those behind football as a business: their dedication and following is the driving force behind broadcast rights, merchandise, and ticket sales, all of which turn a wonderful sport into a cash cow for those pulling the strings. As long as the game is fair, both in the field and behind the scenes, it’s a win-win for all parties: the players get their salaries, the fans get their quality football, and the business entities behind them, ranging from football betting operators to the teams’ owners, advertisers, sponsors, and such, all get their money. Like in every business, though, there are parties in football that don’t exactly operate according to the rules. Of business, that is.

What many people don’t realize, though, is that football goes beyond being simply a game. As MEP Stelios Kouloglou pointed out in an op-ed published on Euractive this April, football can often flow into different areas like politics and racial bias, pointing out that the emergence of Pelé, one of the best football players ever, was instrumental to significantly reducing racism in Brazil. Yet the democratic nature of football is degraded today thanks to all the money flowing into it. And the best example of this, Kouloglou writes, is the UEFA Champions League.

As he points out, the only clubs that can reach the Champions League semi-finals are from the “big 5” countries – Spain, Italy, France, Germany and Great Britain. And this happens not because there aren’t any talented teams in other countries but because of all the money flowing into the clubs nowadays. After all, not all clubs can afford to pay almost £200 million for a single player, no matter how talented and marketable the player might be. These big clubs with big money behind them syphon all the most talented players from all over the world, offering amazing transfer fees and strengthening their ranks – investing in their future success with the goal of keeping their fans’ attention pointed on them, and making even more money in the process.

And where there’s money, there must be scandals related to money. Corruption and tax avoidance run rampant across football, from the top of organizations like FIFA and UEFA down to local clubs and players, working with financial advisors like Kingsbridge that allegedly help them invest in ways that will grant them tax relief, schemes that “don’t work”, according to HM Revenue and Customs.

A few years ago, an unpopular opinion emerged in the press stating that the influx of big money into football will ruin it forever by attracting the “wrong kind of owners” that see clubs as their “cash cow”, among others. MP Damian Collins went as far as saying that “Running a big football club now is like running a Hollywood studio – it’s a content business. The money goes to the stars”. And this is one of the biggest issues today’s football faces that can ruin it forever.

Some of us are old enough to remember the days when we played football in the streets with lamp posts for goals. The “baw” in my day was a plastic “Hampden Frido” (with wee studs that left yer forehead looking like a golf ball when heading it – see picture) and a “Wembley Mettoy”.

.. and why sites like SFM matter.

When SFM blasted off in 2012, we had a fair idea that Scottish Football had not only veered violently off the rails,but that it had done so deliberately.

Our intention was to try to help – in some small way – to steer it towards a straighter track, and to see it restored as a sporting institution and spectacle worthy of sporting principles. To see integrity restored to our national sport, to see honesty, fairness and adherence to both the laws of the game and land.

Of course we didn’t know what route our own journey would take, even although we were clear about the destination. What we did know about the journey was that no matter the route, the first leg started outside our own front door.

Who knew we would be taken on a magical mystery tour, blindfolded, spun around a few times, but still find ourselves at that front door. Via the road less traveled, the high road, low road and an endless series of shortcuts and wrong turns we hadn’t moved an inch.

On every stage of the “journey” the SFA, the SPL, and their quasi-legal tribunals & inquiries ducked and dived, twisted and bent the truth, and aided and abetted the greatest scam in the history of UK sport.

Newly coined idioms emerged; “Imperfect registrations”, “boiler-room subsidiary”, “emerged from liquidation”, “ethereal entity”, – and the real doozy; “other clubs could also have broken the tax laws had they wished” – all in an effort to;
1. pretend that what happened had not happened, that cheating was fair, that the rights of one football club were not enshrined in law but decreed by the heavens;
2. hope against hope that the rest of us had gone stark raving bonkers and would accept the “Santa is alive” fallacy as truth.

The facts were;

• That Rangers, having been subjected to the ignominy of administration, had now entered liquidation, leaving behind a mountain of debts, the vast majority of which were underwritten by us, by the taxpaying public.
• That almost £100m of funds was denied to the exchequer as the first ever nationalised football club, bought and paid for by the people of the UK, slid into oblivion, a trail of devastation in its wake.
• That in the course of that calamitous conduct of business, the SFA and the SPL were given false and incomplete information about the nature of players’ contracts. This in order to cover up a tax scheme that was (according to the man who devised it) operated incorrectly and thus unawfully.

Every football club in Scotland and their fans were cheated by a club which quite simply refused to play by the rules – even as the noose around its neck was being pulled ever tighter due to HMRC and Lloyd’s Banking Group taking steps to erect buffers ahead of the onrushing gravy train.

The result was that 140 years of history came to an end; an insatiable hunger for success ironically bringing about the ultimate and irreversible failure of a Scottish institution.

Not for them though, the recognition that they had transgressed. “It wasn’t Rangers – it was Craig White” was the cry.

I’m sure Hearts supporters in 1965 might have said the same about Willie Wallace after he missed a sitter in the final league match against Kilmarnock at Tynecastle. Had he scored, Hearts would have won the league, so Hearts should, by the RFC logic, claim that title anyway. Likewise Celtic fans could have pointed a finger at Georgios Samaras when his penalty miss at Ibrox lost them the league.

More facts: every football club in the world is the sum of its parts, onfield and off. We take the good that people do for our clubs and celebrate them. We have no right to cherry pick and ignore the consequences when people screw up.

Footballers – and administrators – are often gifted individuals given to moments of blinding inspiration which benefits their clubs. They are also often prone to reckless behaviours, the consequences of which we all have to bear. Murray’s knack of talking money out of trees and his reckless and irresponsible practices gave Rangers huge success, but that behaviour also – perhaps inevitably – led to the appointment with the buffers mentioned above.

The good and the bad. Both sides of the same coin, inseparable, inevitable, and there is no choice but to accept the whole package, not just the good bits.

In the circumstances, the hostility towards the old club was understandable. It was always a given that Celtic fans were unlikely to cut them slack as they headed towards an ignominious end.

However, had there been contrition, an acknowledgement of wrongs and some humility in response to talk of consequences, fans of other clubs outside of the Old Firm bubble may have extended some sympathy. But there was none of this. Instead, denial, arrogance, blaming others (“kicking us when we are down”, “who are these people?”) and a pugilistic reaction to the very idea of punishment. The outcome was an absence of sympathy for the plight of RFC.

Let’s revisit this; on an industrial scale, Rangers misrepresented (accidentally if you believe that the board of a PLC was comprised exclusively of halfwits and individuals unable to bite their own fingers) crucial information regarding compliance with registration rules, They subsequently withheld evidence from multiple enquiries into their conduct over these registration rules.

As far back as 1996, Rangers PAYE affairs were being investigated by HMRC and incurring penalties (not a very well publicised event).

Then, for more than a decade, principally through the 2000s they failed to comply with taxation statutes and with crucially important (not merely bureaucratic) SFA rules designed to preserve the intergity of football as a sport. They cheated the revenue out of millions and the fans of every club in Scotland out of their aspirations for their own clubs.

Rangers however were still box-office, and there were 50,000 fans providing a market for the product the now extinct club had provided through the decades. Surely someone would step in and take up the Rangers cause? Surely those people would eschew the catastrophic errors of judgement that had resulted in the economic and existential demise of the original club? Surely they would also acknowledge those mistakes in an effort to convince the clubs and fans they had wronged that this was an organisation that recognised the interdependence of sporting activity?

Surely.

But no. Sadly, no.

Even then though, that matters little.

Why? Because the sins of the old Rangers cannot be visited on the new. The behavior of the new club is a matter for a different argument, but it isn’t relevant in a legal or regulatory sense to the old club. Legally or morally there is nothing you can do to them to ensure that a repeat of the same spivish behaviour does not occur.

So why the fuss? Why the six years of relentless campaigning by SFM and dozens of other football sites?

Because it does matter that the authorities themselves – including all the other clubs – and the MSM have gone out of their way to cover it all up.

No-one at the SFA will talk to fans who have provided them with evidence of wrongdoing in the matter of the 2011 Euro licence. No one will address the witholding of evidence from the LNS enquiry, nor the false premise upon which it arrived at some of its conclusions, nor the mysteriously shifting goalposts of the period investigated by the LNS enquiry, nor the acid-flashback consciousness of the newly arrived at – and totally irregular and unlawful – “imperfect registration” status.

What still requires to be done is to root out those who have enabled the big lie. We need to hold accountable those who have sought to bury evidence, to dispense with logic and to treat fans with contempt and ridicule when legitimate concerns are raised.

We need to replace those people with people of integrity, folk who love the game as much as we do, people who will not yield to intimidation or the dog-whistle.

There are foot thick rule-books in place in football, and the authorities have plummeted into the Asimovian depths of a regulatory Fantastic Voyage to circumvent those. The SFA Chief Executive even told our own John Clark that he would “do nothing” had he been presented with evidence of wrong doing (and he had been presented with such evidence).

Yet one simple rule would have saw the whole sorry escapade brought to a halt – the universal rule that requires people to show due respect and good faith to others.

As I said, we started this journey at our own front door. The authorities and their enablers in the media have been taking us on the Uber route for six years. But we still know the destination, and we will get there. The SFA, the SPFL and the MSM have been relentless in their dedication to half-truths and misdirection.

But the fans are even more relentless in their pursuit of truth and their determination to see our game returned to its status a a sport. That is why outlets like SFM are important. Not because we are any better than others, but because we give a voice to the people in the game who matter most – to the paying public of Scotland who turn up in numbers relatively greater than any other country in Europe. They need that voice. We are not going anywhere.