Firm Ring-Fences £300,000 Of Rangers' Money Over Financial Trouble Fears
A company have had £300,000 of Rangers' money ring-fenced over fears of further financial trouble for the Ibrox club.
A company have had £300,000 of Rangers' money ring-fenced over fears of further financial trouble for the Ibrox club.
The firm, 802 Works Ltd, were granted an arrestment warrant by a sheriff on December 31.
They claim the cash is to be paid out for an unpaid bill for a Wi-Fi system installed at the stadium.
In the latest court hearing involving Rangers, sheriff Ian Miller heard from both sides at Glasgow Sheriff Court.
The Wi-Fi providers, 802 Works claim the football club owe them the money because a system was installed and the balance hasn't been paid.
But, Rangers allege that the company breached the contract they had with them because the Wi-Fi is not fit for purpose.
They claim that the system does not have the capacity to be used by 50,000 people at the same time, but less than 10,000.
However, 802 Works say they are entitled to the money because the work was carried out and figures relating to how many people would be able to access the system was made known to Rangers.
Lawyers for 802 Works want the money ring-fenced to ensure payment if the club goes into insolvency.
The court was told that Rangers "over a considerable period", has been operating at a loss of £7.5million per year.
Various accounts were lodged at the court including an audited report dated October 2015 showing financial information and an account showing more recent figures that were taken from the clubs account system.
The most recent figures were objected to by the representative of 802 Works.
Solicitor advocate Simon Catto, representing 802 Works said the audited report showing a full years accounts and a loss of around £7.5million per year should be preferred.
He said:"These are the only documents that should be looked at when considering if there is a risk of insolvency."
Counsel for the club, Christopher Wilson, told the court that the sum sued for is two percent of the turnover.
He said: "The company is turning over that amount each week."
The court heard Rangers have repaid the £5million loan from Sports Direct.
Mr Catto said that the defence that only 10,000 users could access the Wi-Fi in the stadium and that contributed a breach of contract was "feeble".
The court was told that it was "quite clear from documents" that it was obvious there was no intention that anything like 50,000 people would be able to use the system simultaneously.
The sheriff will make a decision at the end of the week if the warrant to freeze the money is to continue or be recalled.