Gers sale accelerated
Administrators are accelerating the sale of Rangers with a view to avoiding implementing 'very severe' cost-cutting measures.
Last Updated: 07/03/12 4:54pm
Administrators are accelerating the sale of financially-crippled Rangers with a view to avoiding implementing 'very severe' cost-cutting measures.
Duff & Phelps had hoped talks with players, their agents, manager Ally McCoist and PFA Scotland would bring about wage cuts with the club needing to save £4.5million this season.
In the wake of talks stalling on Tuesday night, the Administrators will now be holding discussions with prospective purchasers with a view to bringing fresh investment to Ibrox.
It has been revealed that without 'sufficient' cost-cutting measures or the receipt of substantial unplanned income the club will be unable to fulfil its fixtures this season.
"We are announcing (on Wednesday) we are accelerating the sale of Rangers football club," David Whitehouse, joint administrator, said on the club's official website.
"The club is in a perilous financial situation and that should not be under-estimated.
"Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business. We understand the players' position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed.
"In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad. We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.
"However, no-one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the club will not be able to fulfil its fixtures throughout the remainder of the season.
"As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. The manager, Ally McCoist will play an integral part in these discussions.
"If however it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the club."