Welcome back to "This Day in Scottish History." I'm your host, Colin MacDonald. Today, we delve into a pivotal moment in Scottish football history that unfolded on February 14, 2012. On this day, Rangers Football Club, one of Scotland's most storied institutions, effectively declared bankruptcy—a financial collapse that placed the club under the control of court-appointed administrators in an effort to manage its debts and find a way forward. This marked the beginning of a turbulent period that would profoundly impact the club and the broader football community.

The lead-up to this crisis was marked by financial instability. In May 2011, businessman Craig Whyte acquired Rangers from Sir David Murray for a nominal sum of £1. However, under Whyte's stewardship, the club's financial health deteriorated rapidly. By February 2012, Rangers faced an unpaid tax bill of £9 million, primarily due to withheld PAYE and VAT contributions. This pressing debt compelled the club to file legal papers on February 13, signaling their intention to appoint administrators. The following day, February 14, 2012, Rangers officially entered administration, appointing Duff & Phelps as the administrators.

The immediate consequence of the bankruptcy was a 10-point deduction in the Scottish Premier League standings, effectively ending their championship aspirations for the 2011-2012 season. Beyond the points penalty, the club's financial woes meant they failed to submit accounts for 2011, resulting in the denial of a UEFA license to participate in European competitions for the 2012-2013 season.

As administrators delved deeper, it became evident that the club's total debts could exceed £134 million, a figure that underscored the severity of the financial mismanagement. Efforts to negotiate a Company Voluntary Arrangement (CVA) with creditors were unsuccessful. Consequently, on June 14, 2012, the proposed CVA was formally rejected, leading to the liquidation of The Rangers Football Club plc. The club's assets, including the iconic Ibrox Stadium and the Rangers Training Centre, were sold to a consortium led by Charles Green for £5.5 million. This consortium established a new company, initially named Sevco Scotland Ltd, which was later renamed The Rangers Football Club Ltd.

The aftermath of these events saw Rangers demoted to the Third Division of the Scottish Football League for the 2012-2013 season. Demonstrating resilience, the club secured consecutive promotions, returning to the Scottish Premiership by the 2016-2017 season. This period of adversity reshaped Rangers, leading to significant changes in ownership, management, and operational practices.

Reflecting on the events of February 14, 2012, we recognize a watershed moment in Scottish football history. Rangers' journey through financial collapse and liquidation serves as a cautionary tale about financial stewardship in sports and stands as a testament to the club's enduring spirit and the unwavering support of its fans.

Thank you for joining us on this exploration of Scotland's rich history. Tune in tomorrow for another episode of "This Day in Scottish History." I'm Colin MacDonald, wishing you all the best. Haste Ye Back!

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