Rangers owner Craig Whyte has sensationally admitted that the club could soon be in administration if they fail to pay a huge £40million tax bill.

The new man at the helm at the Ibrox Stadium has recently stated in a press conference that the club are “preparing for a doomsday scenario” if they fail to pay an outstanding £40million tax bill. There are a few different things that they could look into, one of which is factoring. Then there are the a few other routes that they could look into. For example they could look at trying to get an outside investor in who would be able to take on the debt so that it is no longer Rangers’ fault.

They could also look into getting a CVA, or a company voluntary agreement. This is where they agree to repay their debts over a period of time to the people, or company that they owe it too.

On top of these there are many other different things that they could do to sort out their debt, but the one thing that they don’t want is someone who comes in with the sole ambition of destroying the club or essentially, asset stripping it. This basically means, selling off the players, the grounds, the stadium, just absolutely everything that they can make money on and the land is then sold for residential or commercial use.

There are plenty of examples of real business recovery out there and Rangers will be a fine example if they do manage to win this battle with HMRC.

A football club in Northamptonshire is clinging to hope that its future will be saved if creditors agree to the possibility of implementing a Company Voluntary Agreement (CVA).

Rushden and Diamonds Football Club in Nene Park in Irthlingborough is in financial crisis but Steve Beasant, the chief executive officer, is confident the club will be accepted into the Southern League Premier Division after exploring the option of applying a CVA.

The move will see parties repaid some or all of their debts over an agreed period of time. The deadline for the club to meet the Southern League’s entry conditions is at midnight tonight but if no CVA is agreed the club will be liquidated.

Mr Beasant said: “The Southern League will accommodate us. If I speak to them before close of play at the end of the week, they will welcome us.

“I would like to think the opportunity is there. It is down to the support of creditors.”

The latest development comes after the football club’s withdrawal of an appeal against expulsion from the Football Conference, after Japanese investors pulled out of a takeover deal on Sunday.

At Real Business Recovery we are real people with real understanding and real solutions, so let us help you form a legal CVA to repay your creditors over a five year period. We specialise in CVAs so take the first step today and just pick up the phone for free independent, confidential advice on CVA and deal with those nasty creditor threats as well as improve cash flow quickly.

Real Business Recovery also offers advice on all types of business insolvency, from receivership to compulsory liquidation  helping you decide which option is the best for you and your business if you’re facing financial difficulties.

The last three years have been problematic for many of the UK’s biggest sports clubs. From football clubs to smaller independent sports organisations, there’s been an astounding amount of financial or otherwise economic concerns in the sports world. Some have been sorted, often through the use of a company voluntary arrangement, although many clubs continue to deal with excessive debts.

Just how did this debt-friendly sports environment occur? How did some of the world’s most well-known sports franchises end up with mountains of debt to their names? The answer, in a state that’s not quite so surprising, is one that isn’t limited to the United Kingdom. Sports clubs throughout the United States have also dealt with similar financial issues due to low earnings and high spending.

Take the Texas Rangers for example, a leading baseball team that’s experienced a flip-style change of owners over the last two years. Or the Buffalo Sabres, a popular hockey team that experienced a severe ownership crisis in 2003. The sports world has, on an on-and-off basis, been plagued by the issues of financial uncertainty, bankruptcy and ownership changes in almost every country.

So while these poor financial situations may appear to be limited to the UK, they’re actually one of several changes affecting the world of sports. From American baseball teams to some of the United Kingdom’s most well-known football clubs, in the uncertain and highly risky world of sports, it can often be the biggest teams and the leading clubs that fall the hardest.

Britain’s leading football clubs may have gained a reputation for thoughtless spending, but it’s their frugal and intelligently planned spending habits that may get them out of the current financial muck we’re in. A new payment scheme from HM Revenue & Customs has encouraged clubs to spend less money on unnecessary expenses, while also supporting greater revenue and spending reporting.

It’s a move that, in many ways, is long overdue in the world of football, where even small clubs can rack up debts extending into the hundreds of millions of pounds. With player salaries to cover and a laundry list of other expenses to deal with, it doesn’t take much to push a club ‘over the edge.’ A big example is England’s Portsmouth FC, which is now involved in a company voluntary arrangement.

Analysts believe that the financial environment could change within twelve months, with many of the country’s largest football clubs entering a period of total financial health. The reason for such a dramatic shift in fortune – quite literally – is simple. While clubs previously spent first and thought about their finances after, today’s football management strategy is grounded in smart spending.

We can only hope that it will result in a long-term change for many of the top football clubs, most of whom continue to spend great amounts of money on player salaries. It will be interesting to see whether or not the players and management will be willing to take a pay cut, all in an effort to help the world of football improve its operating conditions and reframe the focus on the game itself.

His career started so promisingly with a stunning goal against then title rivals Newcastle in 1994, yet ex-Manchester United footballer has today been declared bankrupt in a startling piece of news considering the modern day footballer’s typical wealth.

The former Northern Ireland international player, 35, was served with a creditor’s petition and listed in an official receiver bankruptcy notice published today.

Gillespie was part of the ‘golden generation’ of young players at United including Ryan Giggs, David Beckham and Paul Scholes, who won the Youth Cup in 1992 and he made his debut for the full side when he was 18 years old.

He played last season with Glentoran in the Irish Premiership and is one of Northern Ireland’s most capped players with 86 appearances since his 1994 debut.

An order was made against the player following a petition by HM Revenue and Customs lodged at Belfast High Court. A Revenue and Customs spokesman confirmed it had taken action against Gillespie, who has an address in Bangor, Co Down, over a tax bill.

He refused to say how much the service was owed.

It also confirmed that the Official Receiver has been appointed manager of the his estate.

Portsmouth FC, one of England’s oldest football clubs, has fallen under even greater public scrutiny after its £108 million debt burden was revealed to the public. Detailed in a public report, the club’s financial problems have reportedly been caused by ‘serial mismanagement’, poor financial planning, and excessive spending.

Portsmouth administrator Andre Andonikou attempted to clear confusion on the true extent of the club’s financial problems. With debts of £108.6 million and owed transfer fees of over £14 million, the club owes almost £123 million in total debts.

However, with the club’s company voluntary arrangement securing at least some of that debt, the amount of money required from Portsmouth is currently unknown. The club’s unsecured creditors have been noticeably quiet when publicly polled, but most financial analysts believe Portsmouth will end up with anywhere from 25-50% of their total debt repaid over three years.

In what’s become one of Premier League football’s most troubling events, Portsmouth’s financial troubled have opened the door for a range of other clubs to seek financial support. Manchester United have received public criticism for their financial management, and a growing number of Football League clubs have recently sought debt recovery and financial restructuring packages.

Does anyone miss the days when football wasn’t about financial restructuring, debt management, and bankruptcy proceedings? The veteran football fans out there must remember a time – a time not even that long ago – when football was about competition and sport instead of bizarre financial messes.

Unfortunately, today’s football world is packed with problematic financial behavior. From poorly planned club purchases to mega-loans and long-term debt issues, it’s almost impossible to find a football team today that isn’t involved in some kind of strange financial operation.

We’ve found five UK football teams that are in serious need of financial repair. If you’re a fan and an investor, you might find inspiration. If you’re just a fan – these examples of football’s dodgy finances may serve as a disappointment.

1. Portsmouth F.C.

Source: http://www.bbc.co.uk/hampshire/content/images/2007/11/06/pompey_newcastle1_470x300.jpg

Portsmouth have been facing some serious financial problems since the early days of 2008. After struggling with debt and ongoing expenses, the club passed from owner to owner, eventually attracting interest from troubled Abu Dhabi businessman Sulaiman Al-Fahim.

However, just forty days after purchasing the club, Al-Fahim decided it wasn’t for him and sold over 90% of the holdings to another UAE-based businessman. The club went through a range of financial problems – late payments to players, staff, and other contractors became common – and eventually wound up just days away from administration in February 2010.

After seeking desperately for a buyer, Portsmouth ended up admitting defeat and searching for bankruptcy options. While the club still actively seeks some form of financial support and ownership, it’s unlikely this Premier League club will ever be the financial powerhouse that it once was.

Current Status: Seeking bankruptcy protection after failing to repay debts acquired by the fourth owner in one season. The club has faced bankruptcy once before – in late 1998 it entered administration after a series of failed investments and loan screw-ups.

2. Leeds United A.F.C.

Source: http://i.dailymail.co.uk/i/pix/2008/11/30/article-1090583-02A291F3000005DC-145_468x286.jpg

Leeds United was once a powerful football club, winning major games and hitting their first European semi-final in the late 1990s. After breaking player transfer world records and showing their financial power on and off the field, the club appeared to be a major player in English football and an image of corporate strength.

Of course, things didn’t stay rosy for too long. The club took out massive loans against its chances at winning major tournaments and championships, hoping to repay them with the income that would be generated with a favorable result. After failing to perform in some important games, the club ended up with a terrifying dilemma: they could struggle with long-term debt, or sell for well below their worth.

They chose to sell. After selling Rio Ferdinand for $30 million to rival club Manchester United, the club went through a series of poorly-planned and embarrassing financial disasters. Now a third tier team, Leeds United A.F.C. are often considered the UK’s best example of financial football mismanagement.

Current Status: Still around, although currently a third-tier team – a long way from their late 1990s glory. However, many expect the team to improve in coming years, as other leading football teams face financial cutbacks and debt-related issues.

3. Crystal Palace F.C.

Source: http://static.panoramio.com/photos/original/5158488.jpg

Crystal Palace Football Club has been a state of near-permanent financial ruin since the late 1990s. After securing a place as one of England’s leading teams through Premier League success in the 1990s, the club fell to disastrous financial places after severe mismanagement and debt-related issues in 2000. Then-owner Mark Goldberg simply couldn’t handle the level of debt the club had amassed, and sold it to mobile phone tycoon Simon Jordan,

Unfortunately, Simon Jordan couldn’t handle the club’s heavy financial obligations, despite his own fortune. After failing to bring the club to a steady level of financial health, Crystal Palace F.C. went into administration in February 2010. Despite interest from a number of UK-based and international investors, the club’s future isn’t exactly clear.

Current Status: Crystal Palace F.C. is currently in administration, although a number of investors and businesspeople are expressing interest in purchasing it. American rapper, entrepreneur, and producer Sean “Diddy” Combs is reportedly considering buying the club out of bankruptcy.

4. Manchester United F.C.

Source: http://tribeofdad.net/wp-content/uploads/2009/03/man-united-win-european-cup.jpg

Although the financial side of Manchester United is most well-known for Malcolm Glazer’s privatization and controlling interest, there are some serious debt issues troubling one of the UK’s most famous and successful football clubs. After being made private through Glazer’s 75% buyout in the early 2000s, Manchester United no longer release financial reports, though many speculate that the club isn’t in such hot financial shape anymore.

After entering a £660 million financial package in 2006, the club has struggled with debt. Public estimates put Glazer’s current debt at over £1 billion, although many analysts say the club could actually be in good financial shape. A range of parties have expressed interest in buying the club from its current owners, including the ‘Red Knights’ – a wealthy group of Manchester United fans with an interest in controlling the club.

Whether or not the deals go ahead, the thought of a fan-owned football club is certainly interesting. Manchester United may be in better financial shape than many of their other modern counterparts, but whether a fan-run team can bring the club out of its current worries remains unknown.

Current Status: Struggling with over £1 billion in debt. American owner Malcolm Glazer isn’t particularly popular with many Manchester United fans, who believe his ownership has caused severe financial worries for the club.

5. Chester City F.C.

Source: http://images.icnetwork.co.uk/upl/chesterchronicle/feb2009/8/5/Image_5_for_Shrewsbury_v_Chester_City_FC_gallery_929689770.jpg

Like many other UK-based football clubs, Chester City F.C. are no stranger to severe financial difficulties and near-miss bankruptcy situations. The club first entered administration in 1998, after a series of poor player investments and financial mistakes left them unable to service their debt or meet minimum repayment amounts.

Despite a purchase by American investor Terry Smith in 1999 and a large personal investment, the club has still struggled to escape bankruptcy throughout the last decade. After losing their Football League status in the early 2000s, Chester City has been on a steady downhill slope. The club entered administration again in late 2009, and has since been barred from playing in any English leagues after failing to pay players and staff.

Current Status: Unable to play in any English football leagues. The club entered administration in 2009 with over £7 billion in debt.