Glasgow Rangers Football Club filed legal papers on Monday February 13 2012 making clear its intention to move into administration.
The papers were lodged by the club at the Court of Session in the capital, Edinburgh, notifying the authorities of its decision to declare an administrator. The move gave the 54-times Scottish football champions less than a week to confirm that administrators had taken control of affairs.
Though the news was seen as a shocking move in many quarters, it was not a surprise to the football business community, with Rangers also waiting for a tribunal ruling over an unpaid £49 million tax bill.
Announcing the news to a small band of fans outside Ibrox on Monday night, owner Craig Whyte was roundly booed and jeered. When the club formally entered administration, a 10 point penalty was invoked by the Scottish Premier League; effectively ending the club’s interest in this season’s title.
Administration is not unusual in Scotland at the moment, with many businesses struggling to finance their daily operations effectively.
The number of insolvencies have been lower than many would have thought though, helped in part by Scottish factoring companies providing alternative commercial financing, allowing for sustainability and growth.
It is possible that Rangers could benefit from asset based lending or investment perhaps, mindful of the value of Ibrox and their training ground in particular.
However, for fans, the effective winding up of the club founded back in 1873 will be hard to stomach, even if it is reborn as a new entity in the future.