The Rangers SFA 5 Way Agreement – A Brief Overview
The Rangers SFA 5 Way Agreement is a settlement arrangement that was put in place following the financial difficulties experienced by Rangers Football Club. This agreement was made between the Scottish Football Association (SFA), the Scottish Premier League (SPL), the Scottish Football League (SFL), Rangers Football Club, and the new owners of the club, Sevco Scotland Ltd.
The agreement came into effect in July 2012, following Rangers’ demotion to the Scottish Third Division after being found guilty of a number of financial irregularities. The main aim of the agreement was to ensure the continuation of Scottish football, while also addressing the issues surrounding Rangers’ financial mismanagement.
So, what did the Rangers SFA 5 Way Agreement entail?
Firstly, it allowed Rangers Football Club to continue to play in Scottish football, albeit in the Third Division. However, Sevco Scotland Ltd, the new owners of the club, had to agree to take on the debts of the old Rangers Football Club, which included unpaid taxes and other liabilities.
Secondly, the agreement set out a number of sanctions for Rangers’ previous financial mismanagement. These included a 12-month transfer ban, a fine of £250,000, and a deduction of 10 points from Rangers’ league position for the 2012/13 season.
Thirdly, the agreement addressed the issue of Rangers’ place in Scottish football going forward. It was agreed that Rangers would start in the Third Division, but that they would be promoted to the Second Division the following season, and then to the First Division the season after that. However, this promotion would be subject to certain conditions, including compliance with financial fair play regulations.
Lastly, the agreement set out a number of key principles that would guide Scottish football going forward. These included a commitment to financial fair play, transparency, and good governance.
In conclusion, the Rangers SFA 5 Way Agreement was a crucial step in addressing the financial mismanagement that had taken place at Rangers Football Club. While the club may have suffered some short-term setbacks as a result of the agreement, it has ultimately allowed Scottish football to continue, while also ensuring that Rangers remain a part of that footballing landscape.