Club9 chief sparks fury at Ibrox over cash claims

RANGERS chairman Malcolm Murray insists his regime’s plan to restore financial fortunes at Ibrox is on course, despite warnings from an advisor to a rival bid to buy the club from administrators.

US-based Jon Pritchett, who advised Bill Miller on his offer for the “oldco” club, wrote in American business magazine Forbes that there was no return possible and stated that “I don’t think the Rangers math works”.

Miller was named preferred bidder by administrators in May but withdrew his offer five days later after stepping up his due diligence. The tow-truck tycoon openly planned a “newco” transaction, which Charles Green’s Sevco Scotland company carried out in a £5.5 million deal after an offer to creditors failed.

Pritchett, who is chief executive of investment firm Club9 Sports, wrote that it would be difficult to end the long-standing culture of over-spending within Ibrox, which resulted in the oldco club being consigned to liquidation with debts of up to £130m.

Responding in a statement, Murray said: “The last time Mr Pritchett had sight of any financial information about Rangers was many months ago and, as a result, his article in Forbes Magazine is ill-informed, misleading and scaremongering.

“There is no risk of the club going into administration and any suggestion otherwise is scandalous and appears written to attract headlines.

“Projections Mr Pritchett had sight of have not been relevant since May and from the day I became chairman, I have been committed to ensuring this club lives within its means and never comes to the brink of collapse. We have already secured significant investment in the club from the individuals and organisations who are part of our consortium and the successful IPO (initial public offering) later this month will generate many 
millions in additional revenue.

“It does not take a genius to work out that costs needed to be cut at the club and this has happened. However, we also have a plan to maximise commercial revenues and develop many areas of the club that historically were under-utilised. It is my understanding that Mr Miller’s plans were based purely on 
cost-cutting and little additional investment in the club.”

Murray added: “What is also clear from his article is that Mr Pritchett completely underestimated the loyalty and commitment of the Rangers fans.

“In addition to the 36,000 season ticket holders so far this season, the attendances at our home matches have surpassed many of the top clubs in England and Europe. We have a clear plan to rebuild this great club and believe that with solid business practices and the ongoing tremendous support from the fans, this will be achieved.”

Pritchett stated that losses in player-asset values – many first-teamers refused to join the new company – were exacerbated by contractual obligations.

“Due to the long-standing largess of the club, fully 70 per cent of the fixed salaries and benefits of the employees were insulated from reduction or elimination,” he wrote. “Without the ability to significantly reduce overhead expenses, a commercially reasonable turnaround of Rangers FC was not feasible.

“From Bill Miller’s perspective, there appeared no possible return on his considerable investment. Upon full inspection, Rangers was not a ‘turnaround’ opportunity. It was (and is) an opportunity for someone with great wealth and a love of football and/or Scotland to give away tens and tens of millions of pounds.”