Kieran Maguire verdict on £3.2m Rangers 'cash injection' and what it means for Celtic
It was “politics” that stopped Celtic borrowing from the Scottish Government’s while Rangers received a £3.2million no-interest loan.
That is according to finance expert and Football Insider columnist Kieran Maguire speaking exclusively after the Scottish Sun reported the figures on 20th June.
Celtic were the only team not in receipt of Government funding throughout the pandemic but Rangers’ £3.2m figure was the highest in the division.
Premiership teams borrowed a total of £25m in order to cope with the financial turbulence of a truncated 2019-20 campaign and absence of fans.
Maguire claimed that Rangers have made a shrewd business decision in making use of the credit facility.
He told Football Insider correspondent Adam Williams: “I think there is an element of politics in it.
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“Celtic perhaps want to show that they are financially independent.
“From Rangers’ point of view, it’s a zero per cent loan with a long repayment period. From a borrower’s perspective, it makes a lot of sense.
“You get an immediate cash injection into the business and the first repayments aren’t until 2022.
“For a club of Rangers’ stature, £3.2m is less than the fee you receive for one win and one draw in the group stages of the Champions League.
“So I think there’s a lot of sense in the approach that they’ve taken.
“They both used the furlough scheme but that’s from Westminster rather from the Scottish Government directly.“
As per figures released in November 2020, Rangers made a £15.9m operating loss over the last financial year.
Celtic meanwhile, who release their annual report in October last year, made a small £100,000 profit.
In other news, striker’s demands revealed as Celtic close in on transfer target.