Glasgow Rangers & Moral Hazard

The malfeasance and associated fiasco surrounding Glasgow Rangers reminds me of “too big to fail” and the banking crisis. Greed, incompetent decision-making and questionable business practices resulted in the likes of RBS and Citigroup collapsing. Complicity from the regulators thrown in for good measure. Denial on the part of the perpetrators. Collapse. We are there with Rangers. This is a tragedy for Scottish football, and the perpetrators seem unable to admit their responsibility. Contrary to what one might think from the main Glasgow tabloid, this is not about the actions of simply one man over the last year. Rather, the problems have been systemic, going back at least to the ’90s and largely hidden by a compliant press. Actions by the Bank of England or Federal Reserve to bail-out their chums in the City or Wall Street created moral hazard on an unprecedented scale. RBS, Citigroup, AIG, etc. never faced the ultimate ramifications of their actions. If Rangers don’t face theirs by, say, HMRC cutting them a deal, then a layer of moral hazard is created that is simply unacceptable. The SFA also have to be seen to act, UEFA would have them if they didn’t – and rightly so. (I’d say exactly the same if it were my team, Killie.) And, honestly, why the hysterical reaction to the fines/sanctions from the SFA? They really are trivial in comparison to Rangers other self-inflicted problems. Or is it more blaming others for your own problems? It really is time for those that wrecked Rangers to face their responsibility, and those “sports writers” in the media that aided and abetted the shenanigans to quit. It’s not as if they were real journalists anyways, their partaking of “succulent lamb” and failure to report actual facts long betrayed them. When it falls to a blog – Rangerstaxcase – to explain to supporters of Scottish football what is really going on it really is a damning indictment of the state of the Scottish press.
And Rangers? Its really hard to see any other outcome rather than liquidation. The administrators seem to be more interested in getting them through the end of the season and an infusion of SPL prize money. Then what? Airdrie United II?

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