British Government in talks with Rangers´ bankers

Concern surrounding Rangers’ financial plight intensified after the British Government held talks with the club’s bankers in a bid to allay fears of the Scottish champions entering administration.

Last week Rangers manager Walter Smith said Halifax Bank of Scotland (HBOS), part of the Lloyds group, were in charge at Ibrox since chairman David Murray stepped down at the beginning of the season.

Rangers have debts of around 30 million pounds and the club announced in January that every player on their books was up for sale.

And, with no new players having been bought by Rangers since August 2008, Smith says a new owner needs to be found as soon as possible.

Jim Murphy, the Secretary of State for Scotland – a post in the UK government led by Prime Minister Gordon Brown – held talks with Lloyds, which is 43 percent owned by the UK taxpayer, on Monday as the bank moved to make clear it was not planning to pull the plug on Rangers.

A Scotland Office spokesman confirmed Murphy had spoken to Lloyds by saying: “The Secretary of State for Scotland spoke to Lloyds Bank about the importance of the bank’s support for Rangers Football Club.

“There are clearly financial difficulties facing Scottish football clubs – both large and small. Our national game is important to Scotland and will come through this recession and the wider pressures in football.”

Meanwhile the bank said: “We do not run or manage the companies that we bank – that is, quite properly, the responsibility of the management.

“Given the recent press coverage, we would therefore like to be clear that Rangers FC is neither operated or run by Lloyds Banking Group.

“We would also like to be clear that Sir David Murray’s decision to step down as chairman was a personal decision and not at the behest of Lloyds Banking Group.”

Smith’s contract and that of assistant manager Ally McCoist expire in January.

The Rangers manager is sanguine about his future if a new owner does come in but club chief executive Martin Bain said: “The club can confirm that while there have been tentative enquiries regarding the sale of the club, there are none that have realised an offer.”

Bain, who has stressed the club will not be obliged to sell players in January, said Lloyds is “supportive” of the club during a period of “difficult economic conditions”.