Scottish football champion Rangers have been forced to seek bankruptcy protection after a financial meltdown, triggering a 10-point deduction for the 140-year-old club and effectively handing the title to Celtic.
Rangers is now 14 points behind its fierce Glasgow rival as a battle with the tax authorities over an estimated bill of up to STG75 million ($A110 million) led to it becoming the most prominent European club so far to go into administration.
Rangers is not only the most successful club in Scottish football, but its 54 domestic titles are a world record.
Entering financial administration is the last attempt to save the club from liquidation.
“We fully recognise the great history of this club and what it means to people throughout the world,” administrator Paul Clark said. “Whilst today is a sad day for Rangers, it also addresses the terrible uncertainty that has been hanging over the club.
“I can assure all Rangers supporters that all aspects of the administration will be carried out with the interests of the club firmly in mind.
“As a first step, the administration team will ensure that Saturday’s match at Ibrox will proceed as planned and all other routine club business will continue.”
The takeover by Craig Whyte last May appeared to be Rangers’ first step toward financial recovery, having pledged to pay off debts of STG18 million left over from the tenure of former majority shareholder David Murray.
However, Whyte has been unable to solve the club’s financial problems and tax authorities are demanding the settling of unpaid taxes over a period of several years.
Rangers, which was formed in 1873, won the now-defunct European Cup Winners’ Cup in 1972 and lost to Zenit St Petersburg in the final of the UEFA Cup – the forerunner to the Europa League – in 2008. The team has also won 33 Scottish Cups and 27 Scottish League Cups.
Rangers had been four points behind in the Scottish Premier League standings. The 10-point penalty will leave the club in second place with 51 points, still nine ahead of third-place Motherwell.