£1.1m loss for Gers as King faces big bill
RANGERS chairman Dave King faces the prospect of stumping up almost £11million after finally making his forced share offer – as the club report operating losses of £1.1m for the final six months of last year.
The South Africa-based businessman’s move comes after a judge ruled in favour of
the Takeover Panel and ordered him to make an offer to buy almost 70 per cent of the club.
The court found King had broken strict takover rules when he acted with others to seize control at Ibrox in 2016 that should have triggered a formal takeover.
King was required to make a cash offer of 20p a share to all shareholders.
He said in a statement last night: “Supporters will be aware of the Takeover Panel ruling last year that I must make an offer to non-concert party minority shareholders of the Rangers International Football Club PLC.
“I have defended this ruling on the basis that any offer should not come from me but should be made by one of my trust companies.
“The Takeover Panel has relented to my request for which I am grateful.
“One of my trust companies will now proceed and shall within a short period make a fully funded offer in compliance with the normal requirements of the Takeover Panel.”
It comes as the club released unaudited accounts that show it had taken up almost £18m of interest-free loans by the end of 2017 – up almost £2m in six months from the end of June.
The figures, revealed in the unaudited trading accounts, show a revenue of £19.4m for the period, up £3.1m from the same period in 2016.
That was put down to an increase in attendances, the renegotiated retail deal with Sports Direct and an increase in sponsorship and commercial revenues.
But operating expenses were up £3.5m to £19m after the club invested heavily in Pedro Caixinha’s first-team overhaul last summer before he was sacked in October. A financial statement on the website also pointed to a spending increase on matchday activity.
Rangers also confirmed they had taken up loans totalling £17.7m. In November Rangers reported losses of £6.7m for the first six months of 2017 leaving them relying on the interestfree loans that by the end of June stood at £15.9m.
The report added: “Given the investment detailed, the board is comfortable with this planned level of loss reported, and are satisfied results for the full year will continue to have the club on a sure financial footing.”
In February, Rangers also agreed a funding facility with Close Brothers for up to £3m which was secured against the club’s Edmiston House and Albion car park properties.
Meanwhile, Graeme Murty insists Rangers are planning for a brighter future, with or without him.
His position has been subjected to fierce scrutiny over the international break after back-to-back defeats from Celtic and Kilmarnock.
But Murty, who takes his team to Motherwell today, said: “Preparation for preseason, for recruitment, for Europe, should we get there at this round or that round, has already started, as it should do regardless of who is in charge.
“If the job I do is good enough, I’ll get a reward. If not, we’ll have to move on.”