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Craig Whyte

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For the English cricketer, seeCraig White.

Craig Thomas Whyte
Born(1971-01-18)18 January 1971(age 53)
Motherwell,Scotland
NationalityScottish
OccupationVenture capitalist

Craig Thomas Whyte(born 18 January 1971) is a Scottish businessman best known for his controversial spell as owner of Scottish football clubRangers.[1]

Whyte first entered business in aplant hirecompany, after which he moved intosecurity,manufacturing and property. He bought thecontrolling interestinRangers Football Club Plcfrom its then majority shareholderDavid Murrayin May 2011, and subsequently put the club intoadministrationin February 2012 and then liquidation in July 2012.

Early life

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Born inMotherwell,[2]Whyte was educated atKelvinside AcademyinGlasgow.[3]When he was 15, Whyte took an interest in financial markets, and made more than £20,000 buying and selling shares before he left school.[4]

Business career

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Whyte's first job was with his father'sPlant Hirefirm, and in 1990 he set up his own plant-hire company. The company, Whyte Hire, was not a success and went bankrupt in the early 1990s with debts of around £300,000.[3]Whyte recovered from this loss and branched out into security, manufacturing and property.[3]In 1997, aged 26, he was Scotland's youngest millionaire.[5]After selling off most of his businesses, he moved toMonaco.[6]When he moved back to the UK (to London), he became aventure capitalist.[5]TheLondon-basedgroup he heads, Liberty Capital, specialises in buying distressed businesses, turning them around, and selling them on.[3]

Ownership of Rangers FC

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See also:Administration and liquidation of The Rangers Football Club Plc

Whyte was a lifelong supporter ofRangers Football Cluband held an executive box atIbrox Stadium.[3][7]Speculation arose in 2010 that he might launch a bid to buy the indebted Scottish football club.[1]In April 2011, a £28 million deal was thought possible, but this was dependent on agreement withLloyds Banking Groupon how the club's debt would be serviced and a tax assessment of, potentially, £49 million fromHM Revenue and Customs.[8]

Sir David Murraysold his controlling interest in Rangers (85.3%) to Wavetower Limited for £1 on 6 May 2011,[7]with Rangers' debt to the Lloyds Banking Group being reassigned to Wavetower.[9]Wavetower Limited (subsequently renamed The Rangers FC Group Limited)[9]is owned by Liberty Capital, which is Whyte's holding company.[7][10]The then Rangers managerWalter Smithwas reported as welcoming the takeover for the stability it would bring to the club.[11]Whyte said he was proud to be the owner of Rangers and pledged to invest £25 million into transfers, over five years.[12]Regarding the takeover, Whyte was quoted as saying, "Obviously I'm a massive Rangers fan and have been since I was a boy. I'm here first and foremost because I'm a Rangers supporter. I also see a great opportunity and think that Rangers can be a great worldwide brand. I believe there are many commercial activities that can be expanded on."[12]

As part of his reforms Whyte allowed women into the Rangers directors' room for the first time, angering regressive elements of the boardroom includingJohn Greigin the process. Whyte was determined to rid the club of "freeloaders", telling the "unsophisticated" Greig: "It's my club and I can do what I want. I can invite the guests that I want".[13]

ABBC Scotlanddocumentary,Rangers: The Inside Story,aired in October 2011, claimed that Whyte had illegally been a de factoDirectorof a company called Re-Tex during a seven-year period when he was banned from doing so – a claim supported by Robert Burns, the Inspector of Companies at theInsolvency Service,who retired in October 2012.[14]Prior to Re-Tex being wound up in 2003, the company made an offer to sell shares to potential shareholders at a price based on company statements that BBC alleged contained "false and misleading" information, formed from accounts signed off by fakeauditorsappointed by Whyte. The auditors were allegedly run by a convicted fraudster – and former associate of Whyte's – Kevin Sykes. Whyte's ban from being a Director followed the failure of one of his companies – Vital Holdings Ltd – to produce satisfactory accounts.[14]The investigation also alleged that Whyte had taken part in a number of additional criminal acts, including the receipt of £100,000 from the Re-Tex account, ostensibly to pay a tax bill – a payment that was never received by theInland Revenue.[14]In his response to these claims, Craig Whyte denied all allegations of criminality, and stated that he had only ever been a minorshareholderin Re-Tex, rather than a de facto Director.[15]

Rangers FC withdrew all cooperation with the BBC following what the club referred to as "repeated difficulties", describing the investigative programme as a "prejudiced muckraking exercise".[16]Immediately after the programme aired, a spokesman stated that Whyte had instructed his lawyers to "commence immediate legal proceedings against the BBC".[17]However, on 30 November 2011,Rangersconfirmed in a statement to thePLUS stock exchangethat Whyte had been banned from acting as a Director.[18]Whyte begandefamationproceedings against the BBC and Burns in February 2012.[19]A subsequent investigation by theScottish Football Associationdetermined that Whyte was not afit and proper personto run a football club.[20]

On 13 February 2012, Rangers filed legal papers at theCourt of Sessiongiving notice of its intention to appointAdministrators.[21]Rangers officially entered administration on the following day, appointing London-based financial advisersDuff & Phelpsas administrators.[22]This move was forced by Rangers' failure to make £9 million inPAYEandVATpayments since Whyte took control.[22]It was discovered that Whyte had financed his takeover of the club by mortgaging future revenues, rather than by investing any personal funds or other funds to which he had access.[23]Whyte sold his controlling interest in Rangers for £2 to a consortium led by Charles Green on 13 May 2012,[dubious–discuss]following what had, in effect, become an auction process among various consortia for ownership of the club, overseen by Duff and Phelps in that company's role as Administrator.[24]Green offered creditors a settlement in an attempt to exit administration,[24]but this was rejected by the biggest creditor,HMRC,on 14 June 2012, ensuring liquidation. Green was then able to buy out the business and associated assets of Rangers from the Administrator.

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On 25 June 2012, theCrown OfficeaskedStrathclyde Policeto investigate the purchase of Rangers and the club's subsequent financial management.[25]

The ticketing firm Ticketus, which provided Whyte with funding to buy Rangers, successfully sued Whyte for damages in 2013.[26]Whyte was banned from being a company director for 15 years in September 2014.[27]

Awarrantwas issued on 14 November 2014 by theCrown Officefor Whyte's arrest in connection with alleged fraud carried out during the purchase of Rangers. Four arrests were also made in England on 14 November 2014 as part of the ongoing investigation.[28]On 27 November 2014, Whyte had been detained by police in Mexico and was held due to an arrest warrant in relation to the ongoing investigation into his takeover of Rangers in 2011.[29]

On 28 November he appeared atGlasgow Sheriff Court,no plea or declaration was made, and he was released on bail.[30]

Whyte was again arrested in September 2015 when he attended Govan Police Station. On 2 September he appeared at Glasgow Sheriff Court along with the former Rangers FC Chief Executive, Charles Greene. Whyte was charged with conspiracy as well as a charge under Criminal Justice and Licensing (Scotland) Act 2010 Section 28(1).[31][32]On 6 June 2017 he was acquitted of all charges, after a lengthy trial atGlasgow High Court.[33][34][35]

Whyte was declared bankrupt at the High Court in London in October 2015, following his non-payment of damages awarded to Ticketus in 2013.[26]

Personal life

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Whyte owned the historicCastle Grant,nearGrantown-on-Spey,in theScottish Highlands.[5]He is reported to have spent £5 million on restorations and renovations to the castle.[5]Following a court case in February 2012, Whyte was ordered to pay a disputed bill to a roofing contractor who had carried out repairs to the property.[36]

Castle Grant was put on sale for over £1 million in April 2014 and in September was sold to foreign buyers.[37]

References

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  1. ^ab"Craig Whyte profile: The Scots billionaire on the brink of taking over the club he loves".Daily Record.18 November 2010.
  2. ^"Craig Whyte confirms Rangers takeover talks".Evening Times.Herald & Times Group. 8 April 2011.
  3. ^abcdeWatt, Chris (19 November 2010)."Rangers bid tycoon had made £20,000 before leaving school".The Herald.Glasgow: Herald & Times Group.Retrieved10 May2011.
  4. ^"Craig Whyte profile: The Scots billionaire on the brink of taking over the club he loves".18 November 2010.
  5. ^abcd"Craig Whyte: I'm looking forward to making Rangers a leading force in football".Daily Record.7 May 2011.
  6. ^"Scots billionaire Craig Whyte set to buy Rangers for £30m".Daily Record.18 November 2010.
  7. ^abc"Regulatory Story – Acquisition of controlling interest in The Rangers Football Club P.L.C."London Stock Exchange. 6 May 2011. Archived fromthe originalon 22 September 2012.Retrieved6 May2011.
  8. ^"Rangers board admits doubts about Craig Whyte takeover".BBC Sport.19 April 2011.
  9. ^abThe Rangers FC Group Limited (formerly known as Wavetower Limited): Circular to the shareholders of The Rangers Football Club P.L.C.Archived17 July 2012 at theWayback MachineRangers Football Club, 3 June 2011
  10. ^"Rangers takeover complete".Sky Sports.BSkyB. 7 May 2011.Retrieved20 May2011.
  11. ^"Walter Smith happy at completion of Rangers takeover".BBC Sport.9 May 2011.Retrieved12 May2011.
  12. ^ab"New Rangers owner Craig Whyte wants to keep together as much of current squad as he can".Daily Record.10 May 2011.Retrieved12 May2011.
  13. ^Whyte, Craig(14 February 2020).Into The Bear Pit – The Explosive Autobiography.Arena Sport. pp. 83–84.
  14. ^abc"'Criminality' claims over Rangers owner Craig Whyte ".BBC News.BBC. 20 October 2011.Retrieved20 October2011.
  15. ^Williams, Martin (20 October 2011)."Whyte vows legal action as battle with BBC escalates".The Herald.Glasgow: Herald & Times Group.Retrieved18 February2012.
  16. ^"Rangers FC withdraws all co-operation with BBC".BBC News.18 October 2011.Retrieved20 October2011.
  17. ^"Rangers fan MacMillan says Whyte claims 'disturbing'".BBC News.BBC. 21 October 2011.Retrieved21 October2011.
  18. ^"Rangers confirms Craig Whyte had company director ban".BBC News.BBC. 30 November 2011.Retrieved30 November2011.
  19. ^Cameron Hay (18 February 2012)."Rangers administration: Craig Whyte sues BBC for defamation".The Scotsman.Johnston Publishing Ltd.Retrieved18 February2012.
  20. ^"Rangers' Craig Whyte not fit and proper person – Scottish FA".BBC Sport.BBC. 8 March 2012.Retrieved11 March2012.
  21. ^"Rangers FC signals intent to go into administration".BBC News.BBC. 13 February 2012.Retrieved13 February2012.
  22. ^ab"Rangers Football Club enters administration".BBC News.BBC. 14 February 2012.Retrieved14 February2012.
  23. ^"Craig Whyte used Ticketus money in Rangers takeover".BBC News.BBC. 21 February 2012.Retrieved11 March2012.
  24. ^ab"Rangers: Charles Green agrees takeover deal for club".BBC Sport.BBC. 13 May 2012.Retrieved13 May2012.
  25. ^"Rangers in crisis: Police asked to probe Craig Whyte takeover".BBC News.25 June 2012.
  26. ^ab"Former Rangers owner Craig Whyte declared bankrupt".BBC News.BBC. 29 October 2015.Retrieved29 October2015.
  27. ^"Craig Whyte given maximum 15-year director ban".BBC News.BBC. 30 September 2014.
  28. ^"Craig Whyte facing arrest: Crown Office have issued warrant for shamed former Rangers owner".Daily Record.Retrieved16 November2014.
  29. ^"Former Rangers owner Craig Whyte detained by police in Mexico".BBC News.27 November 2014.
  30. ^"Former Rangers owner Craig Whyte released on bail".BBC News.28 November 2014.
  31. ^"Craig Whyte arrested on charges relating to the buyout of Rangers from liquidation in 2012".Daily Record.1 September 2015.
  32. ^"Charles Green and Craig Whyte appear in court over Rangers fraud case".STV News. 2 September 2015. Archived fromthe originalon 4 September 2015.
  33. ^"Former Rangers owner Craig Whyte cleared of all charges by jury at High Court".Daily Record.6 June 2017.Retrieved27 December2022.
  34. ^"Rangers fraud trial: Craig Whyte found not guilty".BBC News.6 June 2017.Retrieved18 October2017.
  35. ^"Five key moments in the Craig Whyte trial".The Scotsman.6 June 2017.Retrieved18 October2017.
  36. ^"'Wholly unreliable' Rangers owner Craig Whyte loses roofing court case ".BBC News.10 February 2012.Retrieved22 February2012.
  37. ^"Craig Whyte's former Castle Grant home is sold".The Scotsman.16 September 2014.
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