Stefan Borson: This is how much extra Rangers could earn after Ibrox expansion update
Rangers’ owners are looking at ways to expand Ibrox in a bid to boost the club’s revenue.
The US consortium, which is led by chairman Andrew Cavenagh and 49ers Enterprises, completed its takeover of Rangers in May.
Speaking at the club’s General Meeting in June, vice-chairman Paraag Marathe revealed Rangers will explore plans for a stadium expansion.
Rangers’ Fan Advisory Board (FAB) provided an update on the situation following a meeting with Cavenagh, chief executive Patrick Stewart, sporting director Kevin Thelwell and chief communications director Greig Mailer last month.
The FAB revealed the club’s preferred option for a stadium expansion would be to lower the level of the pitch and add a further 4,000 seats at Ibrox.
Rangers could get extra £4m after Ibrox plans revealed
Former Man City financial adviser Stefan Borson exclusively told Football Insider Rangers could earn an extra £4million if they push ahead with the expansion.
Ibrox, which has been the Glasgow giants’ home since 1887, currently holds 51,700 fans.
Speaking exclusively to Football Insider, Borson said: “Well, 4,000 is probably another 10 per cent, so it’s worth about £4m a year.
“Then the equation is, well, what’s the build cost for those seats? But it’s worth probably right now £4-5m a year, I would think, 4,000 seats with some hospitality with it. Their total gate receipts and hospitality for 2024 was £44m. It was £40m for 2023.
“I mean, Rangers have actually got quite high gate receipts compared to even a lot of Premier League clubs, just because of the size of the stadium and the club. It’s not crazy, but another £4m a year on revenue is good.
“Obviously, it’s a pretty high margin because if it’s not hospitality stuff, then you’ve already got all of the other costs that are already being spent on those parts of the stadium.”
An extra 4,000 seats would take Ibrox’s capacity beyond 55,000 and closer to Celtic Park’s 60,411.
Rangers landed £44m windfall
Rangers were heavily criticised after facing delays around the development of the Copland Stand at Ibrox last year, an issue the new owners will be looking to avoid.
The Glasgow club were forced to play at Hampden Park in the opening weeks of the campaign due to the construction problems.
Rangers posted a record-breaking revenue in 2023-24 after their turnover increased from £83.8m in 2022-23 to £88.3m.
Meanwhile, the club’s matchday income rose from £39.9m to £43.8m across the same period.
For more Rangers and exclusive news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.