After posting £6.7m loss, something doesn't add up about massive Rangers transfer claim
COMMENT By Richard Parks
Rangers’ annual accounts were posted last week and they made fascinating reading.
The club made a £6.7million net loss last season in their first campaign back in the Scottish Premiership after four years and made it clear they are relying on chairman Dave King to stem further shortfalls.
The losses, revealed in the Rangers International Football Club plc annual accounts, were double that of the previous campaign and there is no sign of an improvement in sight.
Indeed, the annual report stated the club would need £4million of additional funding this season and a further £3.2million in 2018-19.
Where is this cash coming from? Not from the club’s own turnover, that is clear. King’s New Oasis Asset Limited, which is the biggest shareholder in the club, will provide the loans to meet the shortfall.
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Which takes us neatly to the subject of the new manager, with an appointment imminent.
The Scotsman claim that the Scottish giants will land Derek McInnes by the end of the week and are ready to meet the £800,000 compensation required to release him from the Aberdeen contract he signed only in the summer.
Intriguingly, the newspaper report that the Light Blues will “provide him a personal package and player budget that would tempt him away from Aberdeen”.
Which, in base terms, means McInnes has been promised he will have a transfer kitty, and player wages budget, that will not only make Rangers competitive but also genuinely challenge Celtic.
Given the financial restrictions Rangers are under, and their dependency upon King’s loans, this is, quite frankly, jaw-dropping.
There is no mention that McInnes will have to sell to buy, or cash in on any of the club’s main playing assets.
So, it is unclear as to how Rangers will make the purchases needed to provide McInnes with a stronger squad than the one he is seemingly about to inherit.
None of the current players are major assets, certainly not in the £5million-plus bracket that could provide a major injection of funds. Alfredo Morelos might eventually be that player, but he would need to score 30 goals this season, and that doesn’t currently seem likely.