Rangers FC is in crisis undergoing Chapter 13 or financial administration. The news gets worse as players have been warned that many of them will be let go. As many as eleven face the axe. By the end of the day we will get to know their fate.
The layoffs will protect the wages of the remaining players till the end of the season. The other option is to let go of 8 players with an immediate 50% reduction in wages for the others. Many leagues still have their transfer window open which could also see Rangers selling their players to erase debt incurred from the Dick Advocaat era in the late 90s. The situation is highly fluid and the events fast moving.
Interestingly enough, the players never received salaries as payment. It was allegedly in the form of loans which were subjected to minimum taxation. That is the argument the club is making. They say the players owe them money. The HMRC is taking the tack the club covered up by withdrawing money from the EBT to pay them emoluments. Rangers have also been accused of drawing up secret secondary contracts with players. Go to the excellent rangerstaxcase.com site for everything about how Rangers landed in this unholy mess.
Whatever the outcome, it is clear Rangers will go through a lot of pain for a long time. How does that affect Rangeramerica? Carlos Bocanegra, Maurice Edu, and Alejandro Bedoya are mainstays for the club and the US national team.
This is Edu's fourth season in his five year contract and he has already made over 100 appearances for Rangers. Earlier this year, Rangers rejected a bid for him from Sochaux with Ally McCoist keen the American midfielder sign a new contract with the club. He may not go anywhere as he's made himself an integral part of the team.
Bocanegra quickly installed himself as a fan favourite in his first season with solid performances at the back. He has already cemented his position in the starting line up earning the vice captain's mantle. Bedoya signed in August 2011 from Örebro has come off the bench for his eight appearances and is yet to make an impact. He maybe the most vulnerable of the three. The trio are important members of the national team as well so continued appearances at their clubs is a priority. Juergen Klinsmann has also shown a predilection for the bigger European leagues in his selection and it will be difficult to see a step down to the MLS. Meanwhile Rangers will suit up to play Hearts tomorrow.
Update: The decision to cut players has been delayed to next week but it appears that the administrator is in favor of letting that happen over substantial salary deferrals.