Newco 'common' escape route, says SPL chief

SPL chief executive Neil Doncaster continued to pave the way for a newco Rangers to potentially join the league without sanction, stressing it was a "far more common" route out of administration than a creditors agreement.

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SPL clubs are due to vote on financial fair play rules next Wednesday but have already postponed a decision twice as they seek more clarity over the future of Rangers.

Although Charles Green's consortium has signed an exclusive deal to buy the club, there are still huge uncertainties with a Company Voluntary Arrangement (CVA) proposal still to be sent to creditors, who require two weeks' notice before a meeting to decide on any offer.

Failure to achieve a CVA would force Green to form a new company and buy the assets with creditors given no say in any repayment of debts, which could hit £134million, according to the club administrators.

Doncaster has since sought to downplay the difference between a CVA and newco arrangement, saying: "There is certainly a distinction between a CVA and a newco, without any doubt. But newcos have been allowed within UK football for many years.

"Newco is typically the way that businesses in general escape from administration - it is far more common than a CVA route.

"So I am not entirely sure why such a distinction is drawn between the two routes out of administration.

"You achieve a sporting advantage over other clubs by going into administration, therefore you should receive a sporting penalty for going into administration in the first place. That seems to me to be entirely logical."

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