RANGERS made an operating loss of £8.3 million last season and need to recoup those losses in the next 12 months, the club has revealed in its annual accounts.
However, that loss was an improvement on the previous 12 months, in which the club lost £14.4m.
Rangers recently secured a £3m loan from shareholder Mike Ashley but the report warned that the club would have to find an extra £8m over the next 12 months – with the first injection of that cash needed within weeks.
The strategic report of the Rangers International Football Club accounts, which was released yesterday, states: “Without taking account of the possibility for refinancing the £3m short-term loan facility falling due for repayment in April 2015, or of the impact of any cost reduction measures or of any other potential sources of revenue, such as player transfer or loan fees, the forecast identifies that the group will require up to £8m by way of debt or equity finance within the next 12 months.
“The forecast indicates that these significant further funds will be required in early 2015, the first tranche of which being required in January 2015, to meet day-to-day working capital requirements.”
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The club’s independent auditor, Deloitte, added in further comments: “The group requires additional funding to continue to meet its liabilities as they fall due.
“The group has made key assumptions in relation to its ability to secure further funding in addition to the timing and value of season ticket income, increases in matchday income and sponsorship, the timing and value of dividends and further cost reductions.
“These conditions around the need to secure further funding, along with the details provided in note 1 of the financial statements, indicate the existence of a material uncertainty which may cast significant doubt over the group’s ability to continue as a going concern and therefore that the group may be unable to realise its assets and discharge its liabilities in the normal course of business.”
The note stated that Rangers expect promotion to the top flight this season, and consequent uplift in season ticket income and other revenue in the summer.
The report outlining the grave state of finances at Rangers came as former owner Craig Whyte was arrested in connection with his takeover of the club in 2011.
Yesterday, manager Ally McCoist revealed that he may be called to give evidence in any forthcoming court case over the purchase.
Previous owner Sir David Murray and McCoist’s predecessor, Walter Smith, have already been contacted by the procurator fiscal to inform them that they may be required to give evidence.
McCoist said: “There’s not a lot I can say about it but, from our point of view, we are just happy that the police are doing their job and – if criminality has taken place – we’d love to see it taken the full way.”
Whyte was due to appear at Glasgow Sheriff Court this morning after being held in Mexico.
Gary Withey, Whyte’s adviser and a former partner in law firm Collyer Bristow – plus David Grier, Paul Clark and David Whitehouse of Duff & Phelps, the administrators appointed by Whyte following Rangers’ collapse in February 2012 – have also been arrested in connection with the sale.
McCoist added: “On that particular arrest [of Whyte], I can’t comment. I have received information to say there is a possibility I might have to appear in court. If it gets us to the closing chapter, I’ll be quite pleased, actually.
“We certainly would love to get to the bottom of what has happened in the last three years. I think the supporters deserve it.”
McCoist added: “All we can do is try and concentrate on footballing matters.
“It has to remain the most important thing for the coaching staff and players.”
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