Kieran Maguire: Rangers board’s plan is ‘crystal clear’ after seven-figure confirmation
The board ultimately want Rangers to stand on its own two feet – but they are happy to provide external funding for the time being.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the latest developments behind the scenes at Ibrox.
A Companies House update on Tuesday (22 February) confirmed that Rangers have issued 4million shares at 25 pence each.
It is not clear whether the £1m share issue is a cash investment or the conversion of loans into equity.
The Glasgow giants want to pursue a self-sufficient model but share issues are a smart way of funding the club in the meantime, claims Maguire.
“This will leave Rangers better off financially,” he told Football Insider‘s Adam Williams.
“Either they don’t have to repay loans or they have additional cash for working capital requirements.
“The objective of the board is crystal clear. They want the club to be self-sufficient. We are coming out of a Covid environment, remember.
“They were generating 60 per cent of their revenue pre-Covid from matchday income.
“That is testament to a very committed fanbase but it also meant they took a proportionately much bigger hit than a lot of clubs.
“So putting in more money or strengthening the balance sheet by converting debt into equity is a logical step to make.”
It is the third time this year alone that Rangers have issued an allotment of shares.
The Scottish champions progressed to the Europa League quarter-final last night (24 February) after victory over Borussia Dortmund over two legs.
In other news, medical expert claims Rangers fans will be “absolutely gutted” after Aaron Ramsey injury latest.