Ailing Rangers poised to reveal losses of £8m

Published on Saturday 7 November 2009 16:37

ON THE same day that Rangers is due to answer to a misconduct case over supporter violence last week in Romania, the club will publish its annual results revealing losses of about £8 million.

The troubled Old Firm club is up for sale by its majority shareholder Sir David Murray and is currently struggling to find a buyer.

Rangers' debt stands at about 30 million and is growing.

Neil Patey, partner and football industry adviser at Ernst & Young, estimates that Rangers will report losses on Thursday of 7m to 8m.

Last month the Glasgow team's coach Walter Smith sparked a sensation when he claimed Rangers is now being run by the club's debt holders, Lloyds Banking Group.

Speculation rested on the role of the club's new non-executive director, Donald Muir.

He represents Lloyds on the board and is charged with helping reduce the club's debt as well as finding a buyer for Murray's shares.

Experts say that unless a buyer is found the group will be forced to sell players. In a tough economic climate, where Lloyds recently announced a need to raise 25 billion to boost its balance sheet, it is unlikely the bank will continue to let the club's debt increase.

There has been a freeze on buying new players for the past 18 months. Without a sale to a new investor, player sell-offs could start as soon as the January transfer window opens.

Patey said any potential buyers would need to have an emotional tie to the group, as profits are unlikely in the medium term. In turn, any saviour looking to buy Sir David's 90 per cent stake would be in a good position to "drive a hard bargain".

Patey said: "Deep pockets out there, from the Middle East or America, are more attracted to the English Premiership. So unless you get an investor with a strong tie to Rangers they probably aren't interested in the SPL.

"The prospect of selling some of their assets (players] has got to be very real until such time as they have a new investor."