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 Posted by ESPN Staff
Feb 24, 2012

Angry Smith demands answers

Former Rangers manager Walter Smith has demanded answers over the hole in the club's finances which has forced them into administration.

• Top officials leave the club

Rangers went into administration last week over £9 million in unpaid VAT and PAYE, and also owe the tax authority around £4 million for an historic burden highlighted in the club accounts in April last year.

The insolvency action came despite investment firm Ticketus paying more than £24 million for the rights to the club's season tickets in the coming years.

Smith stepped down as planned in May last year weeks after Craig Whyte bought a majority stake in the club for £1 in return for pledges to pay off their £18 million bank debt and invest his own money in the club.

It emerged last week that Lloyds Banking Group were paid with the Ticketus money and administrators were looking for the rest of that cash injection.

Smith said in the Daily Record: "Hopefully the men who did this will be held to account. The administrators must find out and then tell the fans where the money has gone.

"It is their money and they have every right to know. They are the ones who will be suffering most. And I include all those decent people who work behind the scenes and who fear for their jobs.

"Most of them are supporters as well and they all need answers to their questions - and one in particular. Where is the club's money?"

A potentially far higher tax bill could be presented to the club in the coming weeks as they await the outcome of a tribunal into the use of employee benefit trusts from 2001 to 2010.

Her Majesty's Revenue and Customs demanded £36.5 million from the club and Whyte claims the final bill could be £75 million with penalties and interest.

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