‘It seems weird to say this…’ – Rangers smash record but all is not quite as it seems
Rangers will currently only be able to improve their financial figures if the club can perform well in European competition.
That is according to football finance expert Dr Dan Plumley after Rangers recently revealed their latest annual accounts, with the club posting losses of £14.8million despite record revenues of £94.1m.
Glasgow rivals Celtic are still financially stronger than Rangers, with the Hoops earning more last season thanks to their run to the Champions League knockout stages.
Rangers’ 1-1 draw against Braga means they are on the verge of exiting the Europa League in the league phase, whilst their hopes of Champions League qualification next season through the Scottish Premiership currently hang in the balance.
Rangers’ European exploits crucial for club finances
Speaking exclusively to Football Insider, Plumley states that Rangers are currently playing “catch up” financially with other European clubs.
“It probably seems weird to say this because it’s a fairly standard set of football accounts. You know, we see a lot of clubs post record turnovers and still post a loss,” Plumley said.
“And we know that financial performance in terms of income will be driven by on-pitch success and qualification for Europe. To do that, they’ve got to they’ve almost got to budget to run at a loss in some of those years because they’re having to, you know, catch up with some of those biggest clubs in and around Europe.
“So it’s fairly okay for a club like that is what I would say. The on-pitch performance and the slow start this season will hurt them financially. And then it’s all going to be about where they’re at in terms of the European qualification or, you know, whether they stay in Europe and that’ll drive some extra revenues post Christmas.
“So, yeah, it’s an okay set of accounts, but, you know, again, it’ll always be Rangers and Celtic that will dominate that league financially anyway.”
Ibrox expansion to increase Rangers revenue
Rangers could earn £5m in extra revenue if they increase Ibrox, with plans to add 4,000 seats to the stadium.
That would increase Ibrox’s capacity to over 55,000, and would push them closer to Celtic‘s 60,000-seater stadium.
No timeframe has yet been announced on when the expansion could commence, whilst Rangers are currently in the process of appointing a new chief executive and sporting director.