Turnover up 63 per cent
More funding required as Rangers record losses of £11.3m
Funds: Dave King (pic: SNS Group)
Rangers’ drive to break Celtic’s dominance of Scottish football has come at a cost with the club announcing losses of £11.3 million in its latest financial results.
The figures to the year end June 30 showed increased turnover of £53.2m, a significant rise of 63 per cent thanks mainly to participation in the Europa League group stages.
However operating expenses also rose by nearly £20m to £58.2m. Staff costs rose to £34.5m from £24.1m, while spendings on player signings rose from £15.1m to £23m.
The Ibrox outfit also revealed it will require a further £10m to keep the club going to the end of the season, with Laird Investments, the family trust belonging to Rangers chairman Dave King, agreeing to provide additional funds if needed.
The annual report stated: “Building a team to challenge for the Ladbrokes SPFL Premiership and compete in European competition requires continued investment before success in these areas will generate a significant contribution to the revenues and cash flows of the club.
“Until such time, the group continues to require funding support from its investors.
“The board have received undertakings from the investors confirming that they will provide financial support as it is required.
“At the time of preparation, the forecast identified that the group would require £10m by way of debt or equity funding by the end of season 2019/2020 in order to meet its liabilities as they fall due. The first tranche of funding is required from investors in November 2019.
“However, the final amount required is dependent on future football performance, European football participation and player trading amongst other factors.”
The report also revealed a £3.6m increase in legal fees, most of that down to the long-running kit deal wrangle with Mike Ashley.