Rangers accounts laid bare: Huge loss, a rising wage bill, 'investment proposals' rejected and sustained by loans

Rangers have posted a loss of over £24 million in their latest annual accounts, with their revenue slumping by 19 per cent amid the impact of the Covid-19 pandemic.

Playing behind closed doors at Ibrox had a significant impact on Rangers' financial performance for the year to June 2021. (Photo by Alan Harvey / SNS Group)

The Scottish champions were sustained by £21 million of loans from shareholders and investors through the period to June 30, 2021.

Another £8.5 million in loans has been received since then and Rangers have confirmed they require further loans of £7.5 million by the end of this season to meet their financial obligations. Club chairman Douglas Park and his deputy John Bennett have already committed to providing those funds.

Rangers’ total loss of £24.153 million was a sharp increase on the £17.462 million total loss they recorded the previous year.

Revenue decreased by 19 per cent to £47.7 million, from £59 million in 2020, mainly due to the loss of matchday and hospitality revenues with matches being played behind closed doors. Despite being unable to attend games, however, Rangers supporters still provided £17 million of income for the club with a record number of season ticket sales. The run to the last 16 of the Europa League accounted for £11.7 million of turnover.

The club’s first-team wage bill increased from £29.7 million to £33.5 million, amounting to 70 per cent of turnover, with total operating expenses reduced slightly from £76.9 million to £74.6 million.

Rangers say that during the course of the year, they received a number of ‘investment proposals’ from the ‘private equity and family office sphere’ but those were rejected.

“We are extremely fortunate to have an investor group that is able and willing to match or better the indicative terms from such groups whilst retaining the ownership in the hands of dedicated Rangers supporters,” they state.

Since the end of the accounting period, Rangers also say they have repaid former chairman Dave King’s £5 million loan and have secured a bank loan facility with a major UK high street lender for the first time since the South Africa-based businessman oversaw regime change at Ibrox in 2015.

King’s successor Park has indicated that he believes it will be 2025 before Rangers achieve the model of financial sustainability they are striving for.

“At this juncture, I repeat my analysis from late 2015,” said Park. “When the current board wrestled back control of our club, I viewed this as a ten-year project.

“In 2021, I still believe that analysis to be accurate. The condition in which our club was left cannot be underestimated.

“Yet, painstakingly and with unerring resolve, we have rebuilt and we will continue to do so. Despite the challenges, we have consistently and noticeably improved. As our club’s recovery has progressed, it has been our intent to strengthen from a position of strength and the past year’s transfer activity demonstrates that.

“Our necessary recovery investment and player acquisition programme, combined with the damaging effects of COVID-19, have had clear effects on our financial statements.”

Rangers will hold their annual general meeting at the Clyde Auditorium in Glasgow at 10.30am on Tuesday, November 30.