Scottish Championship side Rangers' board was "plunged into a fresh financial crisis on Friday" when former Dir Imran Ahmad won a court order to freeze £620,000 ($1M) of the club's "dwindling cash reserves," according to Gordon Waddell of the Scotland DAILY RECORD. The club faces an instant Scottish Professional Football League "disciplinary investigation if they fail to pay their players and coaching staff at the end of the month." Ahmad's court victory "leaves the beleaguered Gers board struggling to make payroll." Now, if Rangers default, "rules introduced two years ago on the back of Hearts' problems leave them no wriggle room." Any default "will be hit by an instant registration embargo." They will "also then be subject to disciplinary procedures, which allow the governing body sanctions ranging from a slap on the wrist to docked points to exclusion from the league" (DAILY RECORD, 9/7). The BBC reported Alan Summers, an attorney representing Rangers, "asked for leave to appeal saying there had been an 'error of law.'" Ahmad, who had "twice lost court bids to have Rangers' assets ring-fenced, claims he is owed" £500,000 ($809,000) for "negotiating deals" and wants another £120,000 ($194,200) to cover legal expenses. Advocate Kenny McBrearty told Judge Lord Stewart that Ahmad was "concerned about the current state of the club's finances and fears Rangers would not be in a position to pay up if the court eventually ruled in his favour" (BBC, 9/5).
RISK OF INSOLVENCY: The Glasgow EVENING TIMES reported after hearing claims that Rangers "were becoming wealthy" and were the "envy of English premiership sides" for their financial position, Stewart ruled that there was still a "risk" of the Glasgow side "becoming insolvent." After being told that Rangers currently have £1.2M ($1.9M) "in cash in their bank accounts, Lord Stewart ordered that the money be set aside immediately." He said, "I have a great deal of sympathy for Rangers fans who are bystanders in these events" (EVENING TIMES, 9/5). The HERALD SCOTLAND reported Rangers are "paupers at present, their future once again uncertain and seemingly bleak." Having "burned through tens of millions of pounds in recent years, they are now into their last seven figures." The club said in a statement that it "agreed with the judge's assertion" when he said, "This does not mean to say that insolvency is an actuality or is going to happen." That "may be the case, but it doesn't ease the fears of supporters, nor will it convince investors" (HERALD SCOTLAND, 9/7).
