Daily Record Forced To Retract Rangers Liquidation Lies

Editor says to journalist: 'I'm looking for a reporter who is imaginative. I did just say 'investigative', didn't I?'Today, The Daily Record was forced into a humiliating climb-down when it printed a correction to a piece that ran in the paper on 25 September.

That piece was originally about Charles Green, but one paragraph in the story caught the eye of some in Celtic cyberspace, and was the subject of a couple of excellent blogs from The Clumpany, where he mocked The Record mercilessly for it.

The offending paragraph read “The club went into administration and subsequent forced liquidation by HMRC over a “phantom” £80million tax bill. The club were later cleared of having ever owed the taxman.”

I’m sure you’ll agree reading it that this is pure and simple garbage, without even the remotest connection at all with reality, but then I credit most of this sites readers as being of above average intelligence anyway, which rules out buying The Record in the first place.

We weren’t the intended audience for this piece of fantasy fluff, of course. That was the Sevco support, and the section of it which subscribes to the Victim Myth.

I’ve spent a lot of time pondering the Victim Myth. Indeed, it was the focus of my last piece here, where I laid out the consequences to the club if all the principals now standing trial in connection to the twin takeovers are found guilty of those offences.

The club itself will not benefit one iota from those verdicts; indeed, the best thing that could happen to all the current shareholders is for Whyte, Green and others to be cleared on all counts.

Yet where the Victim Myth most commonly manifests itself – and the media is even guiltier of this than the Sevco support – lies in the distorted version of reality involving the administration and liquidation of the OldCo, with some, even now, unable to grasp the facts.

Everyone involved in this has been blamed for what happened except those actually responsible; Rangers’ board of directors (including Dave King and Paul Murray) and the supporters. HMRC are convenient scapegoats, as are the banks, Ticketus and others, with Craig Whyte the ultimate bogeyman. But Rangers crashed due to the setup of the club itself.

Recently I’ve gotten into the excellent TV show Deadliest Catch, which is about the fishermen who go hunting for crab in the Bering Sea off the Alaskan coast. As reality shows go there are few better; their job is appallingly dangerous, averaging about a half dozen deaths annually and a slew of injuries almost beyond counting, and the physical and psychological toll that it takes on the fishermen is enormous.

The sea itself is unpredictable, and no matter how well crews prepare there are things that can’t be legislated for, but in Season 1 a boat goes down and we watch the mostly futile rescue attempts.

We later discover, due to changes in legislation governing the fishing season, that one of the reasons it sunk was that it left port “top heavy”, overloaded with more crab pots than advised, and thus unable to manoeuvre in rough seas.

No-one was to blame; other ships frequently leave harbour “top heavy” and we see others do it during the show. It’s the way things happen in the industry, much as clubs running up debt happens in football.

Everyone thinks it can’t happen to them … until it does.

Rangers Football Club was “top heavy” for a long, long time and no-one involved in running it had focussed overmuch on efforts to limit the problems. Indeed, as long as they had HBOS standing behind them, pumping money into them via MIH, they might have continued along, running up debts and then rescaling, until the cows came home.

But in 2008 a storm front hit, HBOS was engulfed and Lloyds, a far more conservative company, found itself holding the balance sheet.

From that moment on, the club was under pressure to live within its means … but it continued playing the odds, hauling more weight than it could reasonably cope with in event of disaster, and in August 2011 that’s exactly what came along, when they were knocked out of the Champions League and then what was the UEFA Cup.

This is still difficult for their fans to grasp, but simple arithmetic is all it requires.

Those defeats left a hole in the balance sheet of some £10 million plus.

The banks had already been chased by then, so they did nothing wrong. They saw the writing on the wall and were not prepared to lend the club a single red cent. No bank is willing to do so today.

HMRC only got involved in administration proceedings when the club stopped paying PAYE. What else were they supposed to do? Ignore that? They were legally obliged to go after it and their own charter expressly says that they refuse all efforts at a CVA when deliberate with-holding of tax revenues is alleged. There was no grand conspiracy.

Whyte could have paid the PAYE, but the hammer would still have fallen, because that £10 million plus hole had to be plugged .

Whyte inherited a bankrupt business. The clue was in the sale price; how else do you pick up a company with tens of millions in assets for £1? The only circumstances in which it has ever happened have been in an asset sale when a company hits the skids or in those where liabilities are so enormous that those involved in the selling know it’s only a matter of time.

Only a matter of time, okay?

I understand why they have difficulty swallowing this; it’s reality and it’s hard to take, and it’s scary because it not only explains how the past happened but points to the likely future.

Without external funding their new club, which is running at a loss, will sooner or later no longer have the cash to keep the lights on and pay its bills as they come due.

That’s a fact of financial life. It’s how things work. It’s the ruthless equation every business in the land, from crab boats to internet blogs, deals with every day of the week.

There’s no such thing as “too big to fail.” Global financial giants have been swallowed in black holes of debt. Even countries – nation states, okay? – like Greece know this by experience.

The talismanic word “Rangers” has no magical properties when it comes to dealing with economic reality; the Victim Myth is predicated on a lie, just as the Survival Myth is.

What’s simply inexcusable is when those lies are regurgitated by national newspapers, by journalists who know better and simply choose to distort facts.

Today The Daily Record has offered a half-hearted apology for “misleading its readers.”

It has fewer and fewer of them every year, because whether it’s in headlines comparing Fergus to Saddam, calling Celtic players “thugs and thieves”, giving Rangers fans wet dreams about the “Motherwell born billionaire”, stirring up hate against Neil Lennon, lauding the genius of Charles Green or going to bat for a convicted tax cheat like Dave King, people now know that “misleading the readers” is this newspaper’s stock in trade and have acted accordingly.

Today’s apology is, therefore, a little bit like being on a crab boat in the middle of the Bering Sea, shouting out at the distant horizon, where only the plankton are listening.

Nevertheless, it’s humiliating for them to have to write the truth for once.

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Comments on Daily Record Forced To Retract Rangers Liquidation Lies

  • Phaco

    Shame on anyone who can’t realise the truth.

  • Big Mike

    Try as I have I cannot see this retraction. Perhaps someone could point it out to me. I thought the Tic fans would pounce on something like this, apathy perhaps.

  • John Scally

    Haven\’t bought this rag since lies about Fergus back in 1995!

  • http://Yahoo Gerrybhoy

    Wouldn’t rap shit is this rag..

  • justshatered

    Yes they are madmen screaming at the moon!!
    And that’s just the reporters.
    The truth however is getting through to a few.

    A week ago I was talking to RFC/TRFC friends and one was telling me it was ‘the holding company’ that had gone to the wall when the other said quietly ‘it was the club’. When the other repeated the great lie again he simply repeated ‘come on it was the club’.

    It was quiet sad to see a guy that has supported his team for forty years admit that it had went bust and yet this was a guy who the day after the asset sale insisted the club had survived. He now believes that he is supporting the essence of his club and that is fine by me.

    I ended up saying that I would withdraw from the conversation as I consider them friends and I didn’t want to cause any conflict yet this seemed to have the opposite effect.

    I don’t wish to glory in anyone’s misfortune but I will not deny reality. I’m confident in the facts unfortunately our media are not.

  • Rank Bajin

    Tour de force James, and a delight to read.

  • http://OnFieldsofGreen Jimthetim

    Given the downward trend in sales of the daily record, I read recently that they will go bust in 7 years time. At that time they will turn into a free ‘newspaper’ that you find lying around buses & trains for your amusement. The crossword will be worth a punt.

    The ‘sports churnalists’ however will be gone, working for the BBC or Radio Clump.

  • Dougie

    Hi James you seem to have forgotten about the wee tax case they owed I think 4 maybe 5 mill to hmrc for that

    Hail hail

  • Kharmic Jhustice

    There is no retraction. They only admit that oldco failed to pay National Insurance and PAYE, and still maintain that the £80 million Big Tax Case was a ‘phantom’.

    Read it again; they’re only apologising for the ‘owed nothing to the taxman’ bit, NOT the £80 mil or whatever the true figure is.

    And half a retraction is just taking the piss, rubbing everyone’s noses in it, that they can write what they like. This smartarsed bullshit has Jackson/Traynor written all over it.

  • joe mccormack

    Their award winning journo,when accused of plagiarising an article wrirren by a proper French journalist, claimed that everyone does it………that’s the sort of person employed by the Daily Radar.
    When the sh*t hits the fan shortly lots of information is going to be filling the front and back pages, completely bemusing those who still buy the red tops but we’ll known to all the bloggers.
    Take the European licence handed to Rangers in 2011 contrary to UEFA rules on unpaid taxes. No longer is anyone defending the indefensible, everyone knows that it should never have been granted.
    Hopefully, via tape recording or email records to be produced in the coming court cases we will know exactly who knew what and when.
    I suspect that the Daily Radar will run a spoiler before the full story is unveiled in a court room.

    Daily Radar Exclusive by Award Winning Journo.

    The DR can reveal exclusively today that the SFA wrongly issued Rangers a licence to partake in the 2011 UEFA competitions. A spokesman for the ruling body was clear that the fault lay with the SFA and the employee whose task it was to verify the paperwork has been told in no uncertain terms not to make the same mistake again…or else!
    The spokesman went on to explain the difficulties in understanding UEFA paperwork and Rangers have apologised for what they claim to be an honest administration error and the employee responsible blah, blah, blah.

    The SFA spokesman was also very critical of UEFA, saying that their rules appeared very rigid and left no wiggle room.
    He even offered to supply UEFA with a copy of the SFA rules and conditions, pointing out that UEFA would be wise to apply a discretionary clause to all their rules.
    This the spokesman confirmed has served the SFA well on a number of occasions and without which Scottish football would not be in the rude health it finds itself in today.

  • joe mccormack

    Compare and contrast the media reporting on the Muir and Dallas.

    One Gers absolutely slaughtered the other must have played a blinder as he’s got another SPFL game this week.

    We really need the SFA marking system to come out of the closet.

    Muir should have got zero from 10 or nil in whatever form they are marked.

    Obviously not, he’s done enough to get another game this week.

    What do the SFA have to fear if they publish their referee league table…….a referee’s strike? Spare me.

    Should we be surprised that the marking system is a secret………..as are many things at Hampden.

    Disgrace doesn’t do it justice, another stitch up, more on the way no doubt.

    It’s a bad, bad day when you are hoping that a forthcoming court case is going to expose some of the dirty dealings that take place in our game but if the what it takes then bring it on.

  • joe mccormack

    I think we all agree that the Scottish media is rank, and that’s being kind.

    They have an agenda and stick to it rigidly.

    Celtic good news……..knock it, play it down.

    Celtic bad news………shout it out loud and bold.

    Rangers good news……big it up, then big it up a little more.

    Rangers bad news………no such thing.

    That for me sums up up the lot of them.

    Look at some of the recent issues…..

    The attack on Dallas compared to the mild rebuke, at best, that Muir’ s performance merited.

    Rangers v Livingston ( bottom of the Championship) televised by the BBC, a recurring theme as far as Rangers games are concerned.

    League Cup quarter finals, the Beeb chose to show the ICT/Ross County match.
    No offence to either but the game of the round will take place at a sold out Tynecastle. …what bright spark made that decision. I doubt very much if that will have me reaching for the remote to tune in.
    Whilst driving home the other night I was listening to Clyde, for my sins, and a Rangers fan came on and quite rightly was enthused about the football he was now watching, back to that in a Mo.
    He then went on to talk about the financial cloud that had been hanging over the club for the last 4 years and thankfully the cloud had now lifted.
    I expected one of the self styled pundits to burst out laughing, but no the guy had his say and no challenge was forthcoming from the knowledgeable panel.
    The poor caller, obviously a DR and/or ET reader, just hasn’t a clue as to what’s going on in the real world and no one on the panel hose to enlighten him.

    His club is currently in more danger that at any time during the reigns of SDM, Whyte or Green. This time it really could be terminal.

    The battle for ownership of the assets could go on for years and no one has a clue as to the likely outcome.
    In the process, via tape recordings, paperwork and emails, there are bound to be revelations which have never seen the light of day, certainly not in the Red tops anyway, none of which will reflect well on Rangers.
    A large element of the Gers support are of a mind that if the bad guys are all found guilty then everything will be just fine…….really?
    There will be consequences for the club no doubt as these fine fellows were all acting as directors/officers of the club when making these decisions.

    Although it was remiss of the Clyde pundits not to set the poor caller straight perhaps they were actually doing him a favour and at the same time ensuring that he would continue to extract his information from the likes of Radar, Chris and Matthew at the DR/ET.

  • joe mccormack

    On the improvement on the pitch down Govan way there is no doubt that the football on display is 100 times better than that served up under the previous regimes, particularly that of Super.
    What astonishes me that not a single pundit, not one, has chosen to analyse the differences between now and then.
    Both managers playing against similar opposition, both having assembled teams at little or no cost, apart from the wage bill.
    Any pundit worth his salt would be all over this, the turnaround being quite astonishing. We are so bereft of decent journalists that it’s hardly a surprise, though no doubt the fix is in and the old pal’s act prevents Super being hammered for his managerial abilities.

    Can you picture a bold journo approaching him and asking….Ally why is Warbs so good and you were sh*t?

  • joe mccormack

    It’s a little confusing, not by accident I imagine, as to whether the various Sevco fans organisations have actually put cash into the club to keep the lights on and meet October payroll!
    Was this cash not meant to go towards share purchases and taking a bigger stake in the club?
    The reporting has been somewhat hazy so would welcome clarification from anyone who has a handle on the situation.
    If this is the case what tales have they been spun to tgem as to the whereabouts of King’s investment?

    Are the monies returnable when King invests?

    Has King repaid the money he borrowed to buy his shareholding?

    The latter especially is quite interesting .

    Here we have someone with a colourful past in South Africa.

    He’s having some difficulty moving money out of the country because the local tax authorities are watching his every movement.

    Borrows the money from 3rd parties to buy a shareholding in the club.

    Lo and behold that shareholding is most likely to turn to financial dust when the court cases come to a conclusion.

    Now these same 3rd parties have also loaned the club several million pounds of their hard earned cash. They are not multi millionaires, nor even near Craig Whyte status.

    The loans were to be repaid from the share issue and/or converted to equity.

    That’s now an impossibility given the court cases which may go on for years.

    One would imagine that they are less than chuffed about the situation they find themselves in and it may just be dawning on them that they have kissed their monies goodbye!

  • http://investingonlinereport.com/ Investing Online Report

    There are more like these in the future if the depression when it comes to investment will persist. I just hope we can have a solution to this.

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