Rangers' collapse in 2012 was driven by huge tax liabilities linked to Employee Benefit Trust (EBT) payments made under former owner Sir David Murray. Over about a decade, more than £47m flowed out of the trusts to more than 80 individuals, including players, managers and directors. HM Revenue and Customs argued these payments should have been taxed as earnings, and the Supreme Court eventually ruled in its favour, five years after the old company's liquidation.
Manchester City now face a very different situation. The Premier League has found the club guilty of all charges related to serious breaches of its financial rules between the 2009-10 and 2017-18 seasons, including sham contracts with commercial partners used to disguise more than £830m of funding. City have appealed and deny any wrongdoing, but the threat of serious sanctions remains.
Rangers' case offers only a partial comparison. Entering administration in February 2011-12 triggered a 10-point deduction, and the club finished second, 20 points behind champions Celtic. No further penalties followed, and Rangers were never stripped of the honours won during the EBT years, as the tribunal found they gave no unfair competitive advantage.
The Rangers saga also highlights the club-versus-company debate. After liquidation, the football assets, including Ibrox and the Rangers name, were bought by a new company led by Charles Green. Rangers then had to apply to join the lower leagues, which were governed by a separate body. Expulsion from the Premier League has been discussed as a hypothetical sanction for City, which could likewise require them to seek admission to the English Football League.
Source: BBC Sport Football · Summarized by HeadlinesBriefing