The announcement that Rangers had gone into administration was sure to send shockwaves through Europe. Not because yet another club had gone into administration, but because it now appeared that it could happen to even the biggest clubs in world football. With that, football clubs had to take another quick glance in the direction of UEFA and their Financial Fair Play to really begin take on board that these rulings from European football’s governing body were in the best interest of each club.
Portsmouth going into administration for the second time in as many years should certainly be a signal to heavy spenders that it is incredibly difficult to get out of financial trouble as severe as this once you’re in it. Their lavish spending in the mid-2000s paved way for a number of successful years at the club; competing in the UEFA Cup, welcoming AC Milan to Fratton Park, and topping it off with the FA Cup. But that manner of spending proved to be unsustainable for a club with little hope of continuing that successful run.
…simply ran out of money…
They’re not a club with a big name that draws potential buyers, nor are they backed with the kind of foundation such as a modern, attractive stadium with which to build upon. Instead, they quite simply ran out of money with which to continue paying players and had to move them on in order to raise funds. The slip into the Championship was not a surprise either, with little remaining now to show for a memorable few years with Harry Redknapp in charge. The truth is, once the situation at Portsmouth became unsustainable, there was little the club could do to stop the inevitable.
Rangers, similarly, are in a position of unpaid taxes totalling £9million. A spokesperson for HMRC said that clubs felt they were untouchable and beyond the normalities of regular businesses. But football clubs are not above others and HMRC has to come down hard on those who are spending recklessly.