Rangers' 2012 collapse offers context for Manchester City's uncertain future
Manchester City's guilty verdict has drawn comparisons to Rangers' 2012 insolvency, but key differences exist in scale and consequences.
Manchester City's guilty verdict for breaching Premier League financial rules has sparked searches for historical parallels, with Rangers' 2012 insolvency often cited. However, the cases differ significantly in their nature and scale.
Rangers' downfall stemmed from massive tax liabilities linked to Employee Benefit Trusts (EBTs), which HMRC argued should have been taxed as earnings. After a Supreme Court ruling in HMRC's favour, the club entered administration in February 2012, incurring a 10-point deduction, and liquidation followed in June. A new company acquired the assets, and Rangers were subsequently voted out of the top flight, eventually restarting in the fourth tier. Notably, they were not stripped of titles won during the EBT era, as these were deemed not to confer unfair advantage.
City, by contrast, have been found guilty of using sham contracts to disguise over £830m in funding between 2009-10 and 2017-18. They have appealed and deny wrongdoing. Potential sanctions include expulsion from the Premier League, which could force them to apply to the EFL, mirroring Rangers' re-entry process. However, the financial disparity between English and Scottish football complicates direct comparisons.
Former Rangers manager Ally McCoist described the 2012 ordeal as 'absolutely horrendous,' citing job losses and the emotional toll. He recalled the surreal experience of playing in lower leagues, including a match delayed because the ball stuck on a hedge. McCoist also noted that players left without transfer fees, forcing the club to rebuild from scratch. City would likely receive fees for departing stars, but McCoist warned that relegation would still mean starting anew.
Supporters have reacted with a mix of dark humour and concern. City fan Matt Mellor joked about seeing Erling Haaland score in League Two, while others worry about the loss of Manchester derbies and the impact on TV revenue. The uncertainty continues as City await the outcome of their appeal.
The Rangers precedent shows that severe sanctions can reshape a club's identity and competitive standing for years. While City's resources and the Premier League's global reach differ vastly from Scotland's landscape, the core lesson remains: a fall from grace can be swift and its aftermath prolonged.
Image: Getty Images / BBC Sport
