Q&A: What next for Rangers in administration?

Q&A: Rangers in administration©SNS Group

With Rangers now in administration, the club have been docked ten points by the Scottish Premier League.

The league has also imposed an embargo on the registration of new players at Ibrox, while uncertainty remains over whether any of the current squad will be let go.

What lies in store now for Rangers in administration? We’ve taken some of your questions on how it will affect the club on the field for the foreseeable future.

Can Rangers be docked any more points?

As it stands, Rangers can't be deducted any further points this season.

The only eventuality where they could lose more points from this season's tally is if they exit administration, then go into administration again.

SPL rules state a club will be deducted ten points every time they suffer an "insolvency event", such as administration.

What happens if Rangers are still in administration next season?

If Rangers start next season still in administration, they will start on minus ten points. This will continue for every season the club is in administration.

Can they appeal the point deduction?

Only if Rangers can prove they have not entered administration. As a court has declared they are in administration, there appears to be no scope to appeal.

Will they fulfil their fixtures? What happens if they don't?

The administrator will try to budget accordingly to ensure the team complete the season and play their remaining fixtures.

When Gretna went into administration in 2008, the SPL gave the club an advance on competition money to pay salaries, ensuring their ability to fulfil fixtures.

If, for whatever reason, Rangers are unable to fulfil any of their SPL games, they could be subject to sanctions from the league.

If it is proven postponements occurred without just cause, the club would be liable to pay compensation for expenses to clubs affected by any cancellation.

What if Rangers go out of business before the end of the season?

If Rangers were to be liquidated before the end of the season, SPL rules state their playing record “may be expunged”. The wording suggests it would not be a foregone conclusion their results from this season would be wiped.

It is also stated that the number of relegation spaces from the league would be reduced accordingly.

Could Rangers be relegated to the Third Division?

No. Rangers, as they currently exist, can not be demoted to Division Three.

The SPL exists independently from the Scottish Football League, which controls Divisions One, Two and Three. Therefore, there is no pyramid structure which would allow the SPL to relegate Rangers through the divisions.

Are contracts now automatically invalid?

No. Every player and member of staff will have their contract honoured by the administrator for the time being.

After the administrator has reviewed the running costs of the club, he may decide to terminate contracts. Every previous occurrence of administration in the SPL has seen players and staff lose their jobs.

Can they sell players?

Officially, the administrators would be unable to sell any of Rangers’ players until the summer transfer window opens.

There is however an avenue open for dispensation to be sought from the Scottish FA, SPL and FIFA to allow for players to be sold, in turn generating cash to keep the club running.

The administrator, provided they have a willing buyer for players, would first have to approach the SFA for clearance. The governing body would then contact FIFA, who have in previous cases stated they would be willing to consider a relaxation of the rules.

The matter would then be referred to the SPL, who would have the final say over whether Rangers would be permitted to sell players. The association of the purchasing club would also have to give their permission for a player to sign.

Could the Scottish FA now impose sanctions?

The SFA would not impose any sanctions on Rangers at present. Though there is some provision for action within the rules, the national association can be asked to act as the appellant body, effectively the appeals body, if any SPL sanctions were disputed or challenged.

Will they get a club licence for next season?

It's too early to say. Administration is not in itself a barrier to gaining a licence but the circumstances surrounding an insolvency event make it very difficult to satisfy the financial criteria involved. Even if Rangers were to exit administration before the club licensing deadline of March 31, the financial circumstances could still see the Licensing Committee decline the application.

Can UEFA impose any sanctions?

UEFA would not impose any separate sanctions on a club in administration. The club licensing system is operated on a national level by the SFA but is UEFA's programme to ensure clubs follow guidelines and obey Financial Fair Play rules.

Is my season ticket still valid?

In a statement prior to the club going into administration, Rangers owner Craig Whyte insisted season tickets for this season, and money paid on next season’s books, would be honoured.

The administrator is yet to announce whether he intends to honour season tickets.

How is this going to end?

This can end one of two ways. Firstly, the club could agree a Company Voluntary Agreement (CVA) with its creditors.

Under a CVA, creditors must agree to the value of 75% to accept a deal, which typically sees a significant chunk of debt wiped out. Previous examples have seen as much as 25p for every pound paid back to creditors, and as little as 4p.

If a CVA can’t be agreed, the club could be liquidated. Much has been made of the possibility of a new Rangers being formed and playing in the SPL. The mechanism to achieve this is explained in the article: Administration: How a 'phoenix' club can play in Scottish football.

Article by Grant Russell and Andrew Coyle