Banks warned not to risk future of Scottish football clubs BANK bosses have been warned not to risk the future of Scotland's football clubs after Rangers were told to cut their debts.

Banks warned not to risk future of Scottish football clubs

BANK bosses have been warned not to risk the future of Scotland's football clubs after Rangers were told to cut their debts.

Scottish politicians united yesterday to say that the financiers should be aware of the social importance of football clubs and Scottish Secretary Jim Murphy spoke to Rangers' bankers, Lloyds, about supporting the club.

After the Evening Times revealed Rangers faced swingeing cuts, politicians said the banks had to be aware of their place in the community and of the consequent dangers of pushing the club out of business.

Anger has been increased because the UK Government holds a 43% stake in the Ibrox club's bankers, Lloyds Banking Group, after the taxpayer-funded banking bailout.

Scottish LibDems' leader Tavish Scott demanded action from Scottish Secretary Jim Murphy. He said: "We need to know if the Secretary of State for Scotland has yet intervened and if not, why not?

"Football fans, even those on the other side of the Old Firm, won't understand why taxpayers' money that is keeping this bank afloat could now be used to push Rangers into receivership.

"If the Lloyds group can take down Rangers, there won't be many professional clubs left in Scotland."

A spokesman for Mr Murphy confirmed he had spoken to the bankers and although he would not reveal the details of the talks he said they were "constructive".

Labour's sports spokesman Frank McAveety said anyone who cared about Scottish football should be concerned by Rangers' plight and he warned the problem went further than just the Ibrox club.

He said: "Rangers' financial difficulties are reflected right across the game.

"I believe clubs should belong to the community and, whether the teams they are dealing with are large or small, the banks should be mindful that these institutions are held in trust for the fans.

"The long-term answer for all clubs is to develop their own players and the priority for the Scottish Government should be to invest in coaching and better facilities for youngsters."

Murdo Fraser, deputy leader of the Scottish Tory Party, said: "There is a very important social aspect to football, and indeed with any sport.

"I would hope that banks dealing with football clubs would remember these are not simply businesses like any other and they have to be treated in that context."

Mr Fraser cautioned that the banks' attitude was not confined to football clubs.

He said: "There is nothing that unusual about the attitude the bank is taking towards Rangers. It's very much in line with the attitude they are taking to business as a whole.

"There are many businesses in Scotland from different sectors facing similar pressures from their bankers and which are having the screws turned on them to an extent that would have been unprecedented in previous years.

"I can understand why banks like Lloyds, which are largely now publicly owned, feel they have to act in this way."

Mr Fraser said the banks were being given "mixed messages" from the Government about their lending practice.

He said: "On the one hand they are being told by politicians they have to support business, on the other the regulators are telling them they have to reduce their levels of lending and eliminate bad debt.

"Therefore, some of the thrust has to go back to the door of the Government for the instructions they are passing down to the banks."

SNP Treasury spokesman Stewart Hosie MP said he hoped a "realistic" business plan could be agree to ensure Rangers' survival.

"Rangers are not just a football team, they are a big business and a major local employer," he said.

Scottish Sports Minister Shona Robison said: "I would hope both parties are able to resolve any problems they may have."

Meanwhile, Lloyds Banking Group said in a statement: "Lloyds Banking Group is a bank that provides finance to many companies and households across the country.

"Our interest is in helping those customers grow and prosper. 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 nor 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.

"The board of Rangers FC is developing and implementing a sustainable business plan and we have agreed to support this plan.

"The group is aware of the unique position that football occupies across many Scottish communities and has been working with Scottish football clubs, including Rangers, for many years."