Celtic’s Lisbon Triumph to the Liquidation of Rangers

Celtic’s Lisbon Triumph to the Liquidation of Rangers

Scottish football has an honourable history, but it is also occasionally marked by repeated episodes of financial instability…

The April 1963 Glasgow Cup Final, which the Bhoys lost 2-1 to Third Lanark, was Celtic’s first final played under floodlights. Photo The Celtic Wiki

Several clubs—ranging from historic institutions to modern success stories—have faced insolvency, administration, or outright liquidation. The cases of Third Lanark, Airdrieonians, Clydebank, Gretna, and Rangers illustrate how financial mismanagement, over reliance on benefactors, and structural weaknesses including employing unlawful tax schemes have periodically reshaped the Scottish game.

One of the earliest and most infamous collapses was that of Third Lanark. Once a major force in Scottish football, the Glasgow club finished third in the top division as late as 1961.

However, by 1967, financial mismanagement and allegations of boardroom corruption had pushed the club into bankruptcy. A Board of Trade inquiry confirmed severe irregularities, and the club was liquidated soon after. Third Lanark’s demise became a cautionary tale, demonstrating how even established clubs could rapidly decline when governance failed.

In the Heat of Lisbon

1967 was of course the year that Celtic grabbed the world’s attention for their outstanding and historic European Cup Final win over Inter Milan in Lisbon as the Scottish side hit the jackpot with goals from Tommy Gemmell and Stevie Chalmers in a dominant Celtic performance.

A generation later, Airdrieonians suffered a similar fate. The club enjoyed relative success in the early 2000s, including back-to-back Scottish Challenge Cup wins, but mounting debts proved unsustainable.

In 2002, Airdrieonians went out of business. Their story did not end there, however. A successor entity, Airdrie United, was formed after acquiring the league place of Clydebank, effectively relocating that club to Airdrie. This controversial move blurred the lines between liquidation and continuity, raising questions about sporting integrity and the identity of football clubs.

Clydebank themselves were deeply affected by this process. Already struggling financially, the club’s situation worsened when their stadium, Kilbowie Park, was sold without a long-term replacement. In 2002, Clydebank’s league place was transferred to the newly formed Airdrie United, effectively removing Clydebank from senior football.

Although not a traditional liquidation in the same sense as other cases, the outcome was similar: the club ceased to exist in its previous form. Supporters later re-established Clydebank as a fan-owned “phoenix club” in 2003, highlighting the growing role of supporter activism in preserving football heritage.

07/10/07. SPL Gretna 1 Celtic 2. Fir Park, Motherwell. Celtic’s Scott McDonald scores to snatch all three points in injury time for Celtic. Photo: The Celtic Wiki

Gretna’s collapse provides a more modern example of how rapid success can mask underlying fragility. Bankrolled by businessman Brooks Mileson, Gretna rose spectacularly from the lower divisions to the Scottish Premier League between 2004 and 2007.

However, when Mileson fell ill and his financial support disappeared, the club’s model proved unsustainable. Gretna entered administration and was liquidated in 2008. Like Clydebank, a successor club—Gretna 2008—was formed by supporters, again illustrating how communities often step in when traditional ownership structures fail.

Craig Whyte

The most high-profile insolvency event in Scottish football history involved Rangers in 2012. Hitherto one of the country’s most successful clubs, Rangers entered administration on 14 February 2012 amid mounting debts, including significant tax liabilities.

After failing to reach a Company Voluntary Arrangement (CVA) with creditors, the club was liquidated in June 2012. The club’s assets were sold to a new company, which was eventually admitted into the Scottish Football League’s lowest division. This event sent shockwaves through Scottish football, both because of Rangers’ stature and the complex legal and philosophical debates it sparked about whether the “club” survived in a sporting sense.

The Herald press cutting

Across these cases, several common themes emerge. Financial overreach is perhaps the most obvious: clubs such as Gretna and Airdrieonians spent beyond their means in pursuit of success, while Rangers accumulated unsustainable debts over time. Dependence on single benefactors also proved risky, as seen most clearly with Gretna. Governance failures, including poor oversight and questionable ownership practices, were central to the collapses of Third Lanark and Rangers.

Another recurring feature is the emergence of “phoenix clubs.” Supporters of Clydebank and Gretna, and to some extent Airdrie, responded to liquidation by forming new entities to carry on the name and traditions of their teams. This reflects a broader shift in football culture, where fans increasingly assert their role as custodians of club identity.

theRangers founding father Charles Green claimed be BOUGHT 54 league titles. Photo social media

This too is exactly what happened at Ibrox as Charles Green’s phoenix club started life in the old third division with Green claiming he had bought the trophies won by Rangers FC, then in liquidation.

In conclusion, insolvency has played a significant role in shaping Scottish football. While each case has unique circumstances, the repeated pattern of financial collapse highlights systemic vulnerabilities within the game. At the same time, the resilience of supporters and the re-emergence of clubs in new forms demonstrate that, even in the face of liquidation, football institutions can endure in spirit if not always in legal form.

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