It Takes Two to Tangle


Danish Pastry Cheers. A Danish I take it? Aye I was …

Comment on It Takes Two to Tangle by Auldheid.

Danish Pastry

Cheers. A Danish I take it? Aye I was surprised at its length myself when I came across it.

Auldheid Also Commented

It Takes Two to Tangle
Danish Pastry

I hate it when that happens. Trouble is docs open for me but not for others. Try this link and let me know if you can open the document. Thanks.

It Takes Two to Tangle
I was prompted by exchanges on Twitter re the real cause of Rangers downfall to find a file on Rangers spend in 07/08. In doing so I came across this from October 2010 when we were all learning about EBTs.

I cannot remember if the article got posted on any Celtic Blog, E Tims or Celtic Underground being the most likely but I have uploaded it here.

To non Celtic supporting readers I crave your indulgence in recognising its target audience in 2010 when the Celtic family was seriously divided as a result of Rangers title success (2 iar going on 3) By God were we hurting then, something that I had forgotten, as divided then as TRFC are now..

I also came across this article using the same data approach but with the emphasis on the use of debt to buy trophies that I think CQN magazine published in Sept 2011..

Note Rangers debt position in 2006 £5.9M! They never mention that when they talk of debt coming down it spoils the why the banks wanted out narrative.

Anyway I hope both are readable and I encourage folk to read them because they contain facts to back the argument of Why Celtic Lost (the first article’s title) when they seemed to have finance in their favour and what played a huge part in Rangers going under (switching to debt from EBTs in 2007/08) to pay the wages to get the debt of paying wages down.

The alternative of simply putting wage controls in place and competing fairly being by Walter Smiths own admission something the support would not tolerate.

This is the kind of fact based analysis that should be informing Scottish football of the way ahead, not the nonsense that kept lamb munchers in fine fettle as they ignored what was going on under their noses.

It Takes Two to Tangle

On the SDM narrative: copied from CQN.

Rangers began using ebts in 1999 with a payment to Craig Moore with an ebt using a Discounted Option Scheme. There was no side letter for Moore. That it was an ebt can be discerned by the term LNS later gave it ie “Rangers Employee Benefit Trust.”

In Aug 2000 Ronnie De Boer was paid using the same ebt scheme as part of his remuneration package with side letters.
Flo was next in Nov 2000.
This DOS was also used by Aberdeen Asset Management and HMRC decided it was an illegal scheme and pursued the company for payment of the tax due.
AAM appealed to an FTT and UTT against the payment but they both found for HMRC.

Following their FTT victory over AAM HMRC , armed with the fact that it was an illegal scheme pursued Rangers for payment in Nov 2010.

Then in Feb 2011 armed with the fact Rangers used side letters that were concealed from HMRC (and SFA/SPL) they pursued Rangers for payment of the tax due. On QC advice, where the concealment was the deciding factor, Rangers agreed to settle.

This is the genesis of the wee tax case that itself gave rise to Res12.

Sometime in 2002 ( I have to check the document) Rangers migrated from the unlawful ebt to the one the UTT found to be lawful because payments under it were deemed loans not pay. De Boer was moved from the DOS ebt to the loan ebt in 2002. Again from memory he was paid by DOS in first half of season 2002/03 and loan in the second half of that season in which Rangers narrowly won the title.
Lord Nimmo Smith was led to and allowed to conflate both lawful ( the loans) and unlawful (DOS) this rendering the DOS payments to De Boer and Flo lawful when they are not.

This is the story the documentation tells, documentation that was witheld from LNS.

The wee tax case story is being omitted because it simply does not fit the narrative that SDM is trying to spin. A narrative being widely reported in national media in spite of some of them having the story on the wee tax case.

It was the wee tax case that emboldened HMRC to pursue settlement on the BTC. They appear to have focused on the contractual element of the ebt ( ie the side letters which means it’s not an ebt) and not on the vehicle for putting the money in the players pocket.
Indeed Lord Doherty makes reference to the AAM case in his decision to spell out the difference.
HMRC ‘ S mission should they wish to pursue it is to have loans defined and see if the later ebts fall into that definition that stops the loan being pay.

Where does this take us?

De Boer and Flo were paid by unlawful means in a scheme that was without doubt tax evasion.

This is much more serious than misadministration. That and the migration to loan ebts where side letters continued to be concealed, is indicative of Rangers intent from the beginning and influenced HMRC to go after them.

There has been no football punishment for the use of unlawful ebts from 2000 to 2003.

Their 2003 title was unlawfully won.

The LNS Commission was misled by Rangers and paints a picture of only serious administrative error rather than the whole truth which is Rangers moved from illegal ebts to legal ones.

I doubt the latter will ever be corrected except on blogs but they are the only means of getting the truth out there.

PS Res12 is unaffected by the foregoing. The SFA ( as the SPL in the LNS case) still have questions to answer and those answers conveyed back to Celtic shareholders.

Recent Comments by Auldheid

It Is Better To Offer No Excuse Than A Bad One
The allegations on CQN that Bobby Madden has a gambling problem surely require his  removal from the the firing line until the allegators are proved wrong.
No snap decisions, just a leisurely swim until there is no question as to his motivations. 

It Is Better To Offer No Excuse Than A Bad One
Dons/Hibees/Jambos and any other club wanting a UEFA spot.
Flogging players who have put TRFC near top of league is an admission those players unaffordable.
The solution is to make a licence for TRFC conditional on a realistic sustainable business plan. SFA are not doing their licencing job. Never have in fact.
So what questions are your club Directors asking the SFA?
Why not get them to ask UEFA if they are happy with the way SFA process licence applications from Ibrox. Seems UEFA not happy.
Proper club licencing can level the playing field a bit but it also protects all clubs from charlatans selling jam tomorrow.

It Is Better To Offer No Excuse Than A Bad One
Allyjambo 21.41

Matthew Lindsay: Time for Dave King to depart Rangers – but who could take over at the Ibrox club?

Rangers need to be run by individuals whose integrity is beyond doubt.
Do such individuals steeped in blue exist?

As rare as a dodo nesting on an iceberg in Carlisle Bay, Barbados.
” No problem can be solved from the same level of consciousness that created it.” Albert Einstein

It Is Better To Offer No Excuse Than A Bad One
I got my electronic copy of Not The View delivered yesterday.
Browsing through I thought I recognised The Christmas Tale offering and was pleased to read it as I had forgotten it was a tale I told at Christmas in 2012 (on CQN I think).
I think it worth repeating as a reminder of why SFM exists – because we love football and we love Scottish football and we aren’t done yet.
See me?
See me?
Ah jist luv fitbaw.
Its funny cos I was never that interested until about age eleven when a good pal, who was destined never to see his 21st birthday after a car crash in Rome encouraged me to try it. John was there to become a priest but got fast tracked by the Big Man who knows a good guy when he sees wan.
John encouraged me to give it a go in Suffolk St.  We played “croassies in” with the metal pull down blinds that formed the gates to the interior of the Barras as goals. Plastic baws, Fridos then Wembleys, arrived about then and many a red hot poker made the game a bogey in a failed attempt at repairing a burst baw.
(I blame the whelk shells; they were aw ower the place from the Oyster Bar in the Gallowgate (where I was entrapped in the cellar two weekends in a row cleaning whelks and mussels) and the ravenous appetite of the Glasgow punter for shellfish.
I played fitbaw morning, noon and night and saw Glasgow Green pitches UPGRADED from black ash/clinker to red blaze. We thought we were Wullie Fernie playing on that stuff and there was a case for playing with 10 baws as teams were filled with tanner baw players (goalies were just last man standing) for whom the object of the game was to beat everybody else in the opposition before scoring or it wisnae a goal.
I remember wan night  at the Glasgow Green waiting to play for St Alphonsus v Our Lady of Fatima  when I saw Tony Green, who was a Mungo boy and went on to play for Newcastle and Scotland before injury ended his career too early, waiting, sannies under his arm, to get a game with any team who were a man short. I think the OLOF manager mugged wan of his boys as Tony appeared for them and turned a virtuoso performance against us to give OLOF a 3-2 victory.
I started work and went to London for a year to work in the old Post Office Savings Bank. In my first week Jock (a Jock) approached and asked if I played. He never mentioned the sport, he didnae hiv tae, we wur already communicating at the spiritual level only fitbaw lovers can reach (the kind of thing that electrifies CP on CL nights.)
I get directions fur a game oan the Saturday at Acton Town and turn up, new Puma boots, paid by my transfer grant, under my arm (nae sannies fur me) On entering the park ahm puzzled, there wiz GRASS everywhere, nae clinker or red blaze in sight.  “Must be roon the back of the dressing rooms “ I remember thinking.
Anyhoo I gets changed runs roon the back to see — MAIR grass as far as the eye can see. So I troop back tae the dressing rooms to get directions to the ash pitches. When I explain what ah wiz used to playin oan they aw jist looked at me like my village wiz searching fur their idiot.
Well I get sorted out and line up. The baw, I remember, wiz a size 5 orange wan, but no wan o they bricks wi laces. The first pass to me wiz high and ah chests the ball doon and whirls roon afore I get studded from the back as wiz the custom oan the narrow pitches of Glasgow Green. To ma amazement the nearest opponent to me is about 4 yards away. As I look into his eyes I smile and turn to Jock at the sidelines and shout.
“Yer gonnae need anither baw” as I meander off in pursuit of the only goal that counted for a tanner baw man. I think I managed 7 before netting and I’ll take that. It wiz oan unfamiliar grass after all.
 Postscript “Aye very guid Auldheid” yer thinking (if you have stayed with me so far.)
“Nice reminiscing and it is Christmas Eve, so thanks fur the memories. “
But there’s mer tae this tale fur
See me?
See me?
I jist luv fitbaw.
Its ma game, its  OOR game and when I see the mess those responsible for looking after its welfare have made of it ah want to do something.
I hope ahm not alone.
Dec 2012

It Is Better To Offer No Excuse Than A Bad One
That Dave King is allowed any influence in Scottiish football is a dereliction of the duty of the SFA to protect our game from criminality.

Dave King should be called to account by the other clubs via the SFA to provide evidence he can do what he has promised, which is bank roll TRFC.

At the very least the clubs should be preparing for another insolvency event at Ibrox and deciding the conditions they will set for TRFC to continue taking part in Scottish football on the same basis as every other club, who act with the utmost good faith to fellow members.

The clubs via the SFA have the powers under Club Licensing to do so, powers that the SFA Comp Off can only conclude the SFA have failed to utilise. Powers that UEFA must have recognised by now as a result of Res12 letter of May 2016 and UEFA Licence submission this year, are not being used fully by the SFA.  

It was self preservation that underpinned the 5 Way Agreement . The dangers of that agreement – destroying integrity, undermining trust, ignoring deceit – become more and more manifest and should alert other clubs to the necessity to exercise their collective responsibility to each other and so to our game that they govern via the SFA on our behalf, using Club Licensing powers.

When a particular course of action designed to preserve self is not working it is human nature to try another course.

Not renewing STs come April/May unless positive trust restoring actions are taken by our clubs collectively, is one way of changing minds about what is self preserving.

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