Rangers record operating losses of £500k
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The unaudited financial figures released by the club show an increase in revenue and a reduction in operating expenses.
Revenue went up by £1.9 million to £11.0 million, mainly due to an increase in ticket and hospitality sales with fans coming back to Ibrox to watch the side under Mark Warburton’s stewardship.
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Hide AdExpenses were reduced by £2.2 million from the previous year, coming in at £11.757 million.
The figues were released on the same day as a statement from chairman Dave King summarising his 12 months in charge of Rangers thus far.
In it, Dave King said: “The club continues to require funding to meet its ongoing cash shortfall.
“This has largely been provided by me and the 3 Bears, however we have recently spread the investor base by securing a portion of the required investment from a group of Hong Kong based supporters. I will continue to look for like-minded investors who can share the financial burden.
“The recent history of Rangers has shown that it is better to have more investors than few. Hopefully, in time, we will see the broad-based supporters group having an increased stake in the club.”
Meanwhile, Rangers have called for Mike Ashley’s firm Sports Direct to renegotiate their retail deal with the Ibrox club in the best interests of both parties.
Sports Direct currently holds power over the club’s retail division. Rangers earn what they perceive to be a paltry amount from sales of official club merchandise.
Rangers have notified Sports Direct that they wish to end the arrangements, but there is a seven-year notice period in place. The club may seek to challenge the deal through the courts but have asked Sports Direct to spare themselves the costs and hassle by coming up with a new arrangement that suits both parties.
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Hide AdKing said in the same statement: “The arrangements with Sports Direct remain problematic.
“It is unfortunate that it required the repayment of the expensive so-called “interest-free” loan before we were able to give notice on the agreement with Sports Direct or to take legal action to protect the club’s interests and seek restitution.
“We have now had sufficient time to analyse the voluminous documentation supporting the establishment of the numerous agreements and side agreements with Sports Direct. Discussions have commenced with our legal advisors to review our findings and to devise the most effective legal strategy.
“It remains possible that the seemingly inevitable lengthy and costly litigation can be avoided. There is a far better alternative if Sports Direct recognises that the present arrangements are not working for either party and agrees to renegotiate the present arrangements to create the win-win situation that should have been reflected in the original agreements if Rangers had an effective negotiating team at that time.
“It would be great to see our supporters once again being able to wear kit at games while being certain that their purchases will benefit the Club and the team.”
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