Red Card for Rangers FC
Graham Spiers “How could a club like Rangers, within the financial constraints of the SPL, possibly cope with £70 million of net debt? So, it became obvious to me, that something was going badly wrong with the running of Rangers FC. And the final red card issued, by Sir David Murray, to me was when I accused him of doing financial vandalism to Rangers.”
Graham Spiers was banished by Murray, but his words would prove prophetic. Rangers were on the ropes and would need a major cash injection. Sir David came to the public to raise £50 million but, it raised only 1 million.
So, what about the rest?
Sir David Murray “Any other amount, above that, the Rangers club will be supported by the Murray Group because the Murray Group basically, indirectly owns the shares in Rangers and it’s our job to fund and support the club”
So, Murray says, that his company would always ride to the rescue of Rangers but, where does Murray Group’s money come from?
Roger Isaacs “It looks as if the majority of that 50 million came from one of the Murray Group companies, which in turn borrowed the money from the bank. The money then flowed into Rangers and was used to repay the bank. So, from what I can see the bank lent the money with one hand and took it back with the other.”
We’ve asked you to look at the accounts of Rangers and Murray, since 1999, so David Murray has always said that he was a benefactor to this club. Have you found any evidence that shows how much money he, personally, invested in Rangers?
Hobbled by HBOS
Roger Isaacs “All the evidence I’ve seen, suggests that the money that’s been invested in Rangers, has come, directly or indirectly, from the bank, HBOS.”
But, what happens to Rangers once the banks stop lending?
After the financial crash, Lloyds bought HBOS, Murray’s bankers. And Lloyds was in for a shock.
Ian Fraser “They were horrified, they were absolutely horrified. Because, they’d been hoodwinked, I believe, by the board of HBOS led by Lord Stevenson. Andy Hornby had essentially duped them, had not revealed the true extent of the exposure to toxic assets, including the Murray ones. So they bought the bank under false pretences. When they did finally have full sight of the balance sheet, from January 09 onwards, they were absolutely appalled, they realised they bought a complete basket-case”
So how much trouble was Sir David Murray now in?
Roger Isaacs “If you look at the accounts to January 09, the net debt has increased to just under £1 billion at 942 million.”
The bank, suddenly, was no longer Sir David’s best friend. And now took a firm grip of his failing empire. High on the banks’ list was Rangers. a warning red card was issued.
Sir David Murray had gone from metals trader to one of the most powerful men in Scotland, who counted the country’s establishment club as his calling card. But, his empire was on its knees. The Rangers fans had had enough and the bank was calling the shots.
Sir David Murray, his risk-taking and ambition resulted in his business empire running up debts of almost £1 billion. He was no longer able to come to the bank to fund Rangers excesses. Under pressure to sell, Sir David Murray left Rangers hopelessly exposed and easy prey for the sharks that were circling.
And so began the next chapter in the downfall of a giant as the ‘For Sale’ signs went up at Ibrox.
External Links
A very Scottish Scandal - Rangers Red Card - Fields of Green
