SPL seek Scottish FA clarification over Rangers' debt to Dundee United

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Talks are ongoing on the sixth floor of Hampden over Rangers' debt to Dundee United.

The Scottish Premier League have sought clarification from the Scottish FA over an agreement previously struck to settle a debt owed by Rangers to Dundee United.

The Tannadice side are owed just over £30,000 from Rangers, relating to a payment for gate receipts from a Scottish Cup tie between the two teams last season.

Both governing bodies agreed to pay a percentage of the debt to United on the Ibrox club's behalf, taken directly from withheld competition monies from the 2011/12 season.

The SPL however disagree that they have a commitment to pay up, despite their secretary, Iain Blair, having sent a letter to Rangers on May 18 outlining their intention to do so.

An SPL spokesperson told STV: "We are now discussing this matter with Andrew McKinlay, the Scottish FA's director of football governance.

"We will be making no further comment until those discussions have been concluded."

The letter, sent to Rangers by Blair, read: "The Board of the Scottish Premier League Ltd considered the application by Dundee United that the outstanding sum due by Rangers to Dundee United of £31,031.20 be offset against the next sums due to Rangers by SPL Ltd, with the offset sum being paid to Dundee United.

"The board decided to accede the application to Dundee United and accordingly the sum will be withheld from the next sum payable by the SPL Ltd to Rangers, and the sum will be paid by the SPL Ltd to Dundee United."

Dundee United issued a statement on Wednesday morning stating they were still owed money. It is understood the Scottish FA have honoured their side of the agreement.

Charles Green's new company agreed to pay all outstanding football debts as part of the agreement which saw Rangers' membership of the Scottish FA transferred.

The businessman also agreed to waive any claim to £2.55m in prize money earned by Rangers for finishing second in the SPL in 2011/12. STV understands that money will instead be redistributed amongst the other 11 participants last campaign, using the league's percentage based distribution model.

On Wednesday afternoon, Green said in a statement: “As previously stated, Rangers Football Club can confirm it has paid all outstanding debts to Scottish football clubs, in addition to agreeing to waive all claims to unpaid fees accrued last season, as part of the Five Party Agreement which was a condition of Scottish FA membership.

“A letter from the SPL to the club - dated May 18, 2012 - stated: ‘The board decided to accede to the application of Dundee United and accordingly, the sum will be withheld from the next sum payable by the SPL Limited to Rangers and the sum will be paid by the SPL Limited to Dundee United.’

“Why the SPL have not paid Dundee United the outstanding sum as previously agreed is a question that they need to answer. We wrote to Dundee Utd on Monday explaining the SPL had previously confirmed they would pay it.

“I spoke to Stewart Regan and his solicitor this morning and provided them with copies of all relevant documentation.”

Outstanding payments

SPL clubs are currently awaiting their annual payment from the league, in which each side receives 4% of the cash pot for the season.

Although some teams are reportedly agitated at the delay, it is understood there is no fixed payment schedule or deadline by which payments are typically made.

Last minute re-negotiations over the league's television deal is believed to have contributed to the delay, with income not yet received from broadcasters to cover the payments to clubs.

STV also understands that the SPL does not have a sufficient cash reserve to make emergency payments to clubs in lieu of cash being received from commercial partners.

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