More lessons in crisis management: Rangers FC

For a club so much under the spotlight you would really think they'd put a little bit more thought into their approach to crisis public relations.


Rangers FC are under the cosh, make no mistake about it, and as in every crisis lack of communication leads to an information vacuum being filled with speculation. In this case predominantly by the Daily Record who have taken it upon themselves to try and uncover exactly what's going on at the club. Why not, it's their job.


However, it is also the club management's job to protect and enhance the reputation of Rangers FC to the best of their ability. Judging by today's media mismanagement and ill conceived communications strategy this is clearly something they are failing to do.


On deciding to publish a statement on their website they have utterly failed to understand the power and influence new media has. However you can use every media platform in the book, but if your core message is ill thought out, then you are fighting against the tide from the start.


Here's the statement issued by chairman Craig Whyte that's meant to bring clarity to the situation and reassure supporters about where the club is at and where it is going. And why by issuing it in this format and with this content it has probably raised more questions than it has answered.

 

First, I would like to address specifically the latest attempt to undermine Rangers in today's Daily Record which devotes five pages to trashing our efforts to get this Club back on a sensible financial footing.

 

In the most lurid terms, the Record accuses the Club's management and, specifically me, of using supporters' money to help fund the buy-out of Rangers. Not true.

 

The Club is accused of not paying £5million in VAT. Not true. Ok a straight refusal get on the front foot. Unfortunately he only then tells half the story.

 

I can categorically assure supporters that when I launched a takeover bid for the Club it was funded entirely from one of my companies and that was demonstrated clearly to the satisfaction of the previous owner, Lloyds Banking Group and professional advisers. Where is the evidence that will bury this rumour for good? Receipts bank statements? Nowhere to be seen, yet again Rangers supporters simply have to take Craig Whyte's word for it.

 

What is true is that Rangers, like many other clubs, has a financing arrangement in place with a company called Ticketus which enables the Club to receive revenue from a portion of season ticket sales in advance.

 

There is nothing unusual or untoward in this arrangement which was put in place at the Club long before my takeover last year and was used by the previous management. For members of that regime to criticise the use of a scheme they put in place is, frankly, outrageous.

 

This is a perfectly straightforward way of raising working capital for the Club. Money from season ticket sales goes directly to the Club and is used for the Club's operations and that remains the case. In effect, all this financing arrangement does is release the revenue to the Club earlier.

 

Ok, if it is so commonplace where is the evidence? What other clubs use this method? Name them? Be overly open, get every detail out, how much raised and what it's used for. If it's a legitimate funding device explain in full. Go for maximum information overload to get your point across, use every possible ally, get some third party endorsement. ideally from another football club who uses this technique. More importantly if the club has been paid £23 million up front where is the money? Answering half a question is as bad as saying nothing

 

The Daily Record's approach to this story sought to distort and dramatise the matter. I for one will not be reading or buying the Daily Record again and I'm sure many other Rangers fans will share my disgust at yet another smear on this football club.

 

Urging boycotts of the media won't win any friends in the long term especially when they are reporting on what could be seen as fans' legitimate grievance. Refute their allegation with hard facts and figures using every media outlet available. Don't post a statement and sit back and wait for the flak to come. Get on the front foot. They should have a media team monitoring social media sites refuting every allegation with consistent, accurate lines based on the facts.

 

It was, predictably, fuelled by accusations of former board members of the Club. I simply ask Rangers fans what these men did for Rangers in the Club's hour of need? They were all talk and no action and presided over the Club as it careered to the brink of financial collapse.

 

Blame blame blame. People interested in the club are not interested in who's fault it is, only what is going to be done about it. Action, action and action.

 

The overarching issue that affects Rangers financially is the HMRC tax tribunal, which has been hanging over the Club for many years and long before I became chairman. As I have said many times before, the sooner that is resolved the better.

 

Yes, but what's the update? Where are we and again what is being done about it? Be open if there's nothing to hide. He then goes on to talk about the playing staff and the lack of transfer money. Every supporter knows that the club is in a fix and that outgoings are more than income. What they want to know is what is the solution. Just how much is available for players at the moment? A little clarity, honesty and understanding of basic communications techniques would go a long way to halting the club's sliding reputation among its stakeholders

 

SUMMARY

  • Don't blame act – no one is interested in excuses

  • Lead from the front – Mr Whyte should have been on the front foot from the off TV,  national and club, live Q+A sessions, live social media interaction. Be the face of the club and take responsibility work to protect and enhance the club's reputation it's your job..

  • Don't rely on traditional media. The days of posting a press release on the club site and hoping for the best are long gone. For such a high profile club to be naive about the power of new media naive is unforgivable.

  • Be open and honest: Over deliver on facts and figure to make your point half a story is worse than no story. Remember if you don't supply the facts someone else will provide misinforrmation.

 
Comments (1)
1 Tuesday, 31 January 2012 19:58
Craig McGill
I did a similar piece over at http://www.contently-managed.com/blog/2012/01/31/what-rangers-boss-craig-whyte-should-have-said/ - glad to see I was on the right track.

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