GERS FORK OUT £3m TO AXE ASH

From Back Page onerous deal with Mike Ashley five years early.

The Light Blues could sever all ties with the controversial sports retailer at the end of the season but they’ve had to take a short-term hit for long-term gain.

Rangers are expected to negotiate a new and more lucrative retail deal next summer that will earn them substantially more than the seven pence in a pound they were handed under the contract set by the previous discredited board.

The severance package to Sports Direct, along with stadium and infrastructure costs and the devaluation of players, account for the bulk of the losses to June 30.

Rangers lost £3.3m the year before on turnover of £22.2m but turnover has increased this time to £29.2m with record season book sales and an increase of 55 per cent in non-ticket revenues.

Exceptional items apart, Rangers insist they are almost operating at break even but they are still being propped up by their directors.

The latest accounts take in some, but not all, of the costs of Pedro Caixinha’s summer rebuild.

But the Gers board and fans must dig deep again to provide finance for their incoming boss.

The accounts also show a seven-figure interest payment due on the soft loans provided by King and his board members, including Douglas Park and the Three Bears.

But Rangers are adamant this is a paper charge as a result of new accountancy standards.

They maintain all loans provided by King and Co are, and will remain, interest free.

King said: “The board and executive again have had to work extremely hard over the last year to deal with a wide range of issues and we will continue to do so in what remains a challenging environment.

“During the year under review I am pleased to say the board secured a favourable outcome to the long-running litigation with Sports Direct and the club will benefit enormously from that outcome.

“Rangers supporters are aware of the difficulties that have been overcome and of the challenges in front of us but their loyalty means we can’t fall short of or fail to reach our shared objectives.

“Rangers must regain a dominant position at home and compete meaningfully again in Europe but neither goal will be reached without the backing of our supporters.”

Rangers’ agm will take place at the Clyde Auditorium on November 30.