Rangers' 2012 collapse offers limited parallels for Man City's uncertain future
October 9, 2026 13:11
WHAT HAPPENED AT RANGERS
Rangers entered administration in February of the 2011-12 season, triggering a 10-point deduction; they finished that campaign second, 20 points behind champions Celtic. Liquidation of the old company followed in June 2012. The immediate crisis stemmed from large tax liabilities connected to an Employee Benefit Trust (EBT) scheme in which more than £47m was paid out to more than 80 individuals over about a decade. HM Revenue and Customs argued those payments should have been taxed as earnings. After lengthy legal proceedings, the Supreme Court ruled in favour of HMRC five years after the old company's liquidation.
Even though the EBT rulings were damaging, Rangers were not stripped of any honours won during the years they used the trusts; those payments were later judged not to have given the club "any unfair competitive advantage." After liquidation, the club's football assets — including Ibrox, the training ground, name and brand — were bought by a new company led by Charles Green. Top-flight clubs voted against letting Rangers remain in the top tier (10 of 12 opposed; Kilmarnock abstained; Rangers voted in favour), so the new company had to apply to play in the lower leagues. The Scottish FA recommended the second tier, but 25 of 30 Scottish Football League clubs voted for Rangers to start in the fourth tier.
WHAT THE PREMIER LEAGUE FOUND ABOUT CITY
The Premier League has found Manchester City guilty of all charges related to serious breaches of the competition's financial rules between the 2009-10 and 2017-18 seasons. The league says City arranged "sham contracts" with a number of commercial partners as part of a scheme to disguise more than £830m of funding. Manchester City deny wrongdoing and have appealed the verdict.
KEY DIFFERENCES
- Rangers' crisis was an insolvency event tied to tax liabilities and EBT payments; the consequences included administration, liquidation of the old company, and the sale of football assets to a new company. No honours were stripped.
- The Premier League's finding against City relates to breaches of league financial rules and alleged disguised funding, not an insolvency process.
WHAT HAPPENS NEXT
Sanctions for City remain uncertain while the club appeals and official penalties are considered. Premier League expulsion has been hypothetically discussed as a potential sanction; if that were applied it has been suggested City would then have to seek acceptance into the English Football League in a way that is analogous to how Rangers applied to the lower Scottish leagues after liquidation. Those outcomes are not confirmed.