The financial crisis at Rangers has moved to the next stage, with the club announcing they're serving notice of intention for entering administration over its debt. Rangers are involved in a court case over roughly $78 million they reportedly owe in taxes.
"From my early days as chairman I saw that administration was a very real option to enable the Club to address these challenges and make a fresh start," Rangers chairman Craig Whyte said as part of a lengthy statement. Frankly, the case for administration in pure financial terms was compelling but I was acutely aware that such a great institution as Rangers could not be viewed exclusively in financial and business terms."
The immediate impact of administration would mean Rangers losing 10 points in the Premier League standings. They're currently in 2nd-place behind Celtic. Since this is the Scottish Premier League where the two Glasgow clubs are normally well ahead of the rest, 10 points wouldn't change Rangers' position in the table. They lead Motherwell by 19 points. They have ten days to decide whether or not to enter administration. The club's official site has a Q&A explaining their current situation.
