Rangers lodges papers for administration Rangers, the 140-year-old Scottish football club, has lodged legal papers signalling it intends to enter administration. The move came as the defending Scottish champion - which with Glasgow Celtic forms the "Old Firm," one of football's oldest rivalries - awaits the verdict of a tax tribunal that could cost it £49m. The HM Revenue & Customs case concerns the use of employee benefits trusts, under which clubs pay players" wages into offshore trusts to avoid national insurance. HMRC last week lost a high-profile case alleging tax evasion against Harry Redknapp, the Tottenham manager, when he was formerly at Portsmouth. In the event of victory against Rangers, the Revenue is expected to pursue other football clubs and businesses. The benefits trusts were established when Sir David Murray, the metals and property magnate, was club chairman. Last May he sold his majority stake for £1 to Craig Whyte, a Scottish venture capitalist, who paid off the £18m owed by the club to Lloyds Banking Group. Rangers said last night it was continuing to have "dialogue" with HMRC in the hope a formal insolvency procedure could be averted. A decision on whether to appoint administrators is expected in the next 10 days. "There is no realistic or practical alternative to this course of action," Rangers said. Mr Whyte said even if Rangers won the tax tribunal, HMRC was determined to appeal. "This would leave the club facing years of uncertainty and also having to pay immediately a range of liabilities to HMRC which will be due whatever the overall result of the tax tribunal," he added. In blunt terms, if we waited until the outcome of the tax tribunal, the risk of Rangers being faced with an unacceptable financial burden and years of uncertainty is too great. Should administration take effect, the club will seek a moratorium from legal action while making an arrangement with creditors and ensuring provision for the HMRC case to be resolved. Rangers said: "If approved by creditors within a month, [this] would minimise any points deduction and enable the club to participate in European football next season." The Scottish Premier League confirmed a 10-point deduction and transfer embargo would be put in place only when administration was confirmed.