SPL Rule Changes Could Derail Rangers Sale
Thu 12th Apr 2012 | Football Governance
Rangers administrators’ hopes of announcing the acceptance of a bid in principle for the club were dashed yesterday (11th) after the Scottish Premier League (SPL) announced it was to hold a general meeting to discuss ‘significant’ rule changes for clubs in insolvency situations.
A statement released by Paul Clark, joint administrator at Duff & Phelps, said:
“As administrators we had hoped to announce today the acceptance in principle of an offer for the purchase of Rangers Football Club, which would be followed by a period of exclusivity while due diligence is undertaken.
“Regrettably, this is not now possible as we were informed over the Easter holiday period that the SPL is proposing to consider at a general meeting on April 30th, significant rule changes in relation to clubs which find themselves in an insolvency situation.
“The effect of such revised measures being considered at this juncture is that we, as administrators are duty bound to inform those parties who have submitted bids of the proposed resolutions the SPL intends to consider.
“Failure to do so would constitute material non-disclosure on our part, which is a serious matter.”
SPL Clubs will consider a range of proposals to amend the Articles and Rules of the SPL. If agreed, the SPL would introduce tougher sanctions on clubs subject to an insolvency event such as increased points deductions from 10 to the greater of 15 points and 1/3 of the Club’s SPL points in the preceding season.
If adopted the amendments to the Articles and Rules will have effect from and including 14 May 2012 (the day after the last day of Season 2011/2012).
For Rangers, the move may have serious implications on the sale of the club.
“Inevitably, bidders are now considering this information and will have to take a view as to whether it will affect their individual bids as they now stand,” added Clark.
“The result is a delay in the sale process. We hope to receive feedback from bidders as soon as possible in order for us to take the sale process forward as quickly as we can.
“We fully respect the right of the SPL to review its own rules and regulations and will not comment on the detail of what is being proposed for the meeting on April 30 at this stage. However, the fact that such measures are being considered at such a sensitive point in the sale process at Rangers is disruptive and regrettable. We hope to issue a further update by the end of this week.”
The SPL said it will make no further comment in respect of these proposals until after the General Meeting on 30 April at which they will be considered by the Clubs.
Posted by: Aaron Gourley
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