Latest news with #EBTs
STV News
10 hours ago
- Business
- STV News
Murray: Newspaper tycoon wanted to merge Celtic and Rangers into one club
Sir David Murray has revealed that former newspaper tycoon Robert Maxwell wanted to merge the Old Firm into one club. The ex-Rangers owner says he received a phone call from Maxwell in the late 1980s, not long after he had taken control of the Ibrox club. The controversial media proprietor, who owned the Mirror Group Newspapers from 1984 until his death in 1991, told Murray he planned to buy Celtic and asked if he would be interested in merging the two Glasgow clubs. In an interview with the BBC, Murray said: 'Shortly after I bought the club, I got a phone call at my house and my son answered. A voice said 'Is David Murray there' and it was Robert Maxwell. 'So I went to the phone and he said 'I am thinking about buying Celtic and we can put both Celtic and Rangers together as one and be a big force'. 'I told him 'I don't think you know the script up here, I don't think it's practical and I don't think it would work' and that was the end of the story. 'He wanted to merge Celtic and Rangers.' In another interview that was released on Monday, Murray, who is promoting his new autobiography, says he has apologised to Rangers fans for selling the club before it collapsed into financial ruin. He sold the Ibrox side for £1 to businessman Craig Whyte, and was at the helm when Rangers gave £47m in tax-free loans to players and staff between 2001 and 2010. The HMRC brought a case against Rangers centring on the club's use of Employee Benefit Trusts (EBTs), which were also used by other clubs. The EBTs enabled the club to pay players, managers and directors through the tax-free loans, but HMRC argued the payments were earnings and should be taxable. Two tribunals – in 2012 and 2014 – ruled in Rangers' favour. But the Supreme Court found in favour of HMRC after an appeal in 2015. The club had been bought in May 2011 by Craig Whyte after Sir David initially struggled to find a buyer willing to take on a potential 'big tax case' bill. Mr Whyte was later cleared of fraud in relation to the takeover. Under Whyte's ownership, Rangers went into liquidation in February 2012 – just a year after the sale. The tipping point for administration was a £9m tax bill due to HMRC, and total debts reached more than £100m. The club was admitted to the third division of Scottish football. Murray, speaking to broadcaster Ewen Cameron and Up Next Studios, said he has apologised to Rangers fans and staff for his part in the collapse. 'I have apologised, but I did a lot of good things for the club. If you want to remember the negative, that's their choice,' he said. When asked if the EBT scandal led to Rangers' downfall, he answered: 'That plus Craig Whyte. 'The interpretation of the EBT by HMRC and Craig Whyte… I think they could have survived the first one but not the two put together.' He added: 'Craig Whyte was a mistake – I'm prepared to admit that. But on the evidence of the money, what he was going to do, it seemed the only course of action.' Sir David continued: 'I was disappointed for the fans first of all and I was also so disappointed for the people that worked there – people who had been so loyal to me – and all of a sudden their jobs were in jeopardy. 'How many plates can you spin? The average Rangers fan doesn't care about my other businesses – but so many in Scotland – a joiner in Fife a haulage firm in Melrose – were affected by the banking crises.' Sir David's autobiography Mettle is out on Monday, and all proceeds will go to the Erskine Charity. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
STV News
17 hours ago
- Business
- STV News
Murray: 'I have apologised to Rangers fans for selling club to Craig Whyte'
Former Rangers owner David Murray says he has apologised to fans for selling the club before it collapsed into financial ruin. Sir David sold the Ibrox side for £1 to businessman Craig Whyte, and was at the helm when Rangers gave £47m in tax-free loans to players and staff between 2001 and 2010. The HMRC brought a case against Rangers centring on the club's use of Employee Benefit Trusts (EBTs), which were also used by other clubs. The EBTs enabled the club to pay players, managers and directors through the tax-free loans, but HMRC argued the payments were earnings and should be taxable. Getty Images Craig Whyte leaves court surrounded by police on September 2, 2015 in Glasgow, Scotland. Two tribunals – in 2012 and 2014 – ruled in Rangers' favour. But the Supreme Court found in favour of HMRC after an appeal in 2015. The club had been bought in May 2011 by Craig Whyte after Sir David initially struggled to find a buyer willing to take on a potential 'big tax case' bill. Mr Whyte was later cleared of fraud in relation to the takeover. Under Whyte's ownership, Rangers went into liquidation in February 2012 less than a year after the sale. Ewen Cameron/Up Next Studios Former Rangers owner David Murray says he has apologised to fans for selling the club before it collapsed into financial ruin. The tipping point for administration was a £9m tax bill due to HMRC, and total debts reached more than £100m. The club was admitted to the third division of Scottish football. Murray, speaking to broadcaster Ewen Cameron and Up Next Studios, said he has apologised to Rangers fans and staff for his part in the collapse. 'I have apologised, but I did a lot of good things for the club. If you want to remember the negative, that's their choice,' he said. When asked if the EBT scandal led to Rangers' downfall, he answered: 'That plus Craig Whyte. 'The interpretation of the EBT by HMRC and Craig Whyte… I think they could have survived the first one but not the two put together.' He added: 'Craig Whyte was a mistake – I'm prepared to admit that. But on the evidence of the money, what he was going to do, it seemed the only course of action.' Sir David continued: 'I was disappointed for the fans first of all and I was also so disappointed for the people that worked there – people who had been so loyal to me – and all of a sudden their jobs were in jeopardy. 'How many plates can you spin? The average Rangers fan doesn't care about my other businesses – but so many in Scotland – a joiner in Fife a haulage firm in Melrose – were affected by the banking crises.' Sir David's autobiography Mettle is out on Monday, and all proceeds will go to the Erskine Charity. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Scotsman
19 hours ago
- Business
- Scotsman
Sir David Murray sorry for Rangers sale disaster but defiant over EBTs and untainted trophies
Former Ibrox chief speaks out ahead of autobiography release Sign up to our Football newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Sir David Murray, the former owner of Rangers, has apologised to supporters for his part in the financial disaster that befell the club in 2012. Murray sold Rangers to businessman Craig Whyte for £1 in 2011 but within a year the Ibrox club was placed into liquidation over unpaid tax bills and forced to restart in the fourth tier of Scottish football. Advertisement Hide Ad Advertisement Hide Ad The financial difficulties were exacerbated by a large debt accumulated under Murray's ownership, where £47million in tax-free loans were paid to players in staff in the form of Employee Benefit Trusts (EBTs). Rangers chairman Sir David Murray pictured at the Murray Park training ground in 2008. | SNS Group 0141 221 3602 Murray has spoken to the BBC to mark the publication of his autobiography, Mettle, and revealed he regretted his decisions and said sorry to fans and club staff. "Of course I'd apologise," he said. "I'm not one of these people who run a company and hide. It was a terrible moment, and I apologise to all the staff, good people, and I know many of them to this day. I'd hope in hindsight, they look at the facts and think I was put in a very difficult position." Murray denied failing to conduct due diligence on Whyte, who had been introduced as a 'high-net-worth individual' but was unable to pay the bills to stave off administration and subsequent liquidation after borrowing £26.7 million against future season ticket sales from the firm, Ticketus. "I went on the facts in front of me," Murray stated. Advertisement Hide Ad Advertisement Hide Ad Craig Whyte bought Rangers from Sir David Murray in 2011 but within a year the club had been liquidation and demoted to the Scottish Third Division. | SNS Group 0141 221 3602 Murray also stressed that "they didn't do anything illegal" when challenged on whether it was morally acceptable to deprive the NHS and other public services of funds so wealthy footballers could pay less tax. "Footballers are getting paid too much," he added. "Not just at Rangers, everywhere. It's avoidance. People do that." Murray has accepted that his Ibrox legacy has been tarnished by the events which surrounded his sale of the club, but insists that the trophies won during his period at the helm were not tainted by the use of EBTs, denying that the scheme allowed the club to gain an unfair financial advantage.
Yahoo
a day ago
- Business
- Yahoo
David Murray says sorry over disaster of Rangers sale
The former owner of Rangers, Sir David Murray, has apologised to fans for his part in the financial calamity that befell the club more than a decade ago. Sir David, who sold the Ibrox side for £1 to businessman Craig Whyte, presided over Ibrox when the club gave £47m in tax-free loans to players and staff between 2001 and 2010. Advertisement Under Mr Whyte's ownership the Rangers business went into liquidation in 2012 - a year after the sale. In a wide-ranging interview with the BBC to mark the publication of his autobiography, Mettle, Sir David said he regretted his decisions and said sorry to fans and club staff. "Of course I'd apologise," he said. "I'm not one of these people who run a company and hide. "It was a terrible moment, and I apologise to all the staff, good people, and I know many of them to this day. "I'd hope in hindsight, they look at the facts and think I was put in a very difficult position." What were the facts? The sale of Rangers and its resulting financial collapse had a huge effect on fans [SNS] What was known as the 'big tax case' centred on the club's use of Employee Benefit Trusts (EBTs). Advertisement EBTs, which were also used by other clubs, enabled Rangers to pay £47m to players, managers and directors between 2001 and 2010 in tax-free loans. HMRC argued the payments were earnings and should be taxable. Two tribunals in 2012 and 2014 had previously found in Rangers' favour but the Supreme Court ruled in favour of HMRC after an appeal in 2015. The case unfolded against a backdrop of financial meltdown for Rangers. Years later, Mr Whyte was charged and cleared of taking over the club by fraud. A court heard that his takeover of Rangers was sealed with a pound coin being tossed across a table in Sir David's office. Advertisement At the time, Mr Whyte had agreed to take on obligations which included paying an £18m bank debt and £5m for players. Sir David denied failing to carry out due diligence on Mr Whyte, saying: "I went on the facts in front of me." Craig Whyte bought the club and its debts for £1 in 2011 [PA Media] Challenged on whether it was morally acceptable to deprive the NHS and other public services of funds so millionaire footballers could pay less tax, Sir David replied: "They didn't do anything illegal." "Footballers are getting paid too much. Not just at Rangers, everywhere," he went on, adding: "It's avoidance. People do that." Advertisement Sir David denied that the trophies Rangers had won in this period were tainted by the tax arrangements and also denied that the scheme amounted to buying success, or financial doping. "Not at all," he replied, adding: "It was proven in the end it wasn't an illegal tax scheme." Sectarianism, steel and Sir Sean Connery Sir David built his fortune in the metal industry before turning to football [PA Media] Sir David made his name in the steel industry, forming the company Murray International Metals Limited by the age of 23. In 1988, he purchased Rangers for £6m and went on to see the club win 15 league championships and 20 domestic Cups. He and manager Graeme Souness signed the club's first high-profile Catholic player since World War Two - Mo Johnston, who previously played for Celtic - in 1989. Advertisement Reflecting on sectarian tensions in Glasgow, which he described in his book as "vitriol", Sir David said the continued singing of sectarian songs at Ibrox was not acceptable. "There's no place for that in society," he said. "I don't think it's right and I've said that and I lost some of the support of the Rangers fans by saying that." Sir David's early success as Rangers owner was achieved with manager Graeme Souness [SNS] The businessman also called for an inquiry into the Scottish government's involvement in the sale of two steel processing plants in Lanarkshire to the tycoon Sanjeev Gupta. The sale was backed by a £7m support package from the Scottish government. Advertisement Sir David claims ministers rejected his rival bid to purchase the business because it was potentially incompatible with state aid rules, and criticised Mr Gupta's management of Liberty Steel in the years since. The Scottish government it had "acted quickly" to support the transaction, adding: "This intervention sustained over 100 jobs at Dalzell and retained steelmaking capacity in Scotland." Sir David was also critical of the industrial policies of both the Scottish and UK governments saying: "It's ridiculous that Britain does not have the capacity to make a steel plate for its defence." Sir David lost his legs after a car accident at the start of his business career [SNS] Elsewhere in his book, Sir David describes in detail the car accident in 1976 that led to his legs being amputated at the age of 24, a year after founding his metals business. Advertisement On the way home from a game of rugby in his fibreglass Lotus, a tyre blowout sent him off the road and into a tree. Sir David described how fellow rugby players stopped to help him, using their ties as tourniquets before he was taken to hospital for life-saving surgery. "None of us know how tough we are until the time we find out how tough we are," he said. "I had a young son of several months old and a boy of two. I'd a young wife. My father had just passed away. I could only go one way. I couldn't fail. I have a responsibility," he added. Another chapter in the autobiography is dedicated to Sir Sean Connery, who was a close friend of Sir David's. Advertisement The book describes how the pair travelled to Dunblane in the aftermath of the murder of 16 children and their teacher in the Scottish town on 13 March 1996. "It was after the terrible news up there that Sean wanted to visit it. And I took him up with some flowers, and quietly he stood for a minute and put some flowers at the school gates. A very difficult moment," said Sir David. "He was such a patriot, Sean. He took an interest in Scotland every day and he just wanted to be there."
