Whyte said he would ‘use ownmoney’tobuyclub
CRAIG Whyte told Rangers bosses the money to fund his acquisition of the football club was “coming from himself”, a court has heard.
The statement was said to have been made during a meeting with board members in Glasgow in March 2011 after Whyte put forward what seemed to be a “viable proposition” to buy the club, jurors heard.
The jury was also told the club’s bank wanted the deal with Whyte to go through.
Former Rangers owner Whyte is on trial at the High Court in Glasgow, where he is accused of acquiring the club fraudulently in May 2011.
Whyte, 46, faces two charges relating to the purchase of Rangers, one of fraud and another under the Companies Act. He denies both allegations.
Former Rangers finance director Donald McIntyre, 58, told the second day of evidence in the trial that he believed the board was informed in November or December of 2010 that Whyte “had an interest in acquiring the club”.
“It seemed a more viable proposition,” Mr McIntyre told the court, adding that an independent committee was formed to look at Whyte’s offer.
“We would be looking for someone with the wherewithal and financial background to take the club forward. That was crucial,” the witness said.
The court heard Whyte ultimately bought t he club’s majority shareholding for £1.
The purchaser would also have to pay £18million to Lloyds Bank – a creditor of Rangers – and a further £9.5m for a “small tax case” and for buying players, the court heard.
Prosecutor Alex Prentice QC asked whether the direc- tors spoke to Whyte about the source of funds for the acquisition.
Mr McIntyre said: “At the meeting, I think the question was asked, where the funds were coming from.
“I believe Mr Whyte said that the money was coming from himself.”
The court heard that, in minutes from a meeting on April 24 that year, Whyte was recorded as confirming funds for the transaction were coming from “Craig Whyte the individual”.
The Crown alleges in the fraud charge Whyte pretend- ed to then Rangers owner Sir David Murray, and others, that funds were available to make all required payments to acquire a “controlling and majority stake” in the club – including clearing an £18m bank debt, £2.8m for the “small tax case” liability, a £1.7m health-and-safety liability and £5m for the playing squad.
Prosecutors allege Whyte had only £4m available from two sources at the time but took out a £24m loan from Ticketus against three years of future season ticket sales “which was held subject to an agreement or agreements being entered into between the club and Ticketus after said acquisition”.
Mr McIntyre said Ticketus would “provide up-front funds in order that any football club could smooth their cash flow throughout the season”.
Effectively, the firm would own the tickets which would then be bought by season ticket holders, he said.
Whyte denies the charges against him.
The trial, before Judge Lady Stacey, continues on Tuesday.