King extends Rangers loans as club reports £6.7m annual loss
Turnover up but Ashley pay-off is £3m
“The board is satisfied that those parties will continue to provide financial support”
Rangers chairman Dave King and his fellow investors will extend their loan facilities to the club by a further £7.2 million over the next 18 months in order to stave off any threat of another financial crisis.
A loss of £6.7m for the year ending 30 June 2017 was revealed when Rangers published their annual accounts last night, slightly more than double the £3.3m deficit they posted the previous year.
The Ibrox club’s turnover increased by £7m to £29.2m in the same period but also saw operating expenses rise by £8m to £32.9m. That included a payment of £3m to Mike Ashley’s Sports Direct to terminate the unpopular retail agreement negotiated by the previous Rangers board.
King’s report in the accounts makes a forecast that a minimum of £4m of additional funding will be required by the end of this season in order to meet liabilities as they fall due. Further funding amounting to £3.2m is forecast to be required during the 2018/19 season, although the final amount is dependent on future football performance and European football participation, among other factors.
New Oasis Asset Limited, King’s family trust fund, have agreed to provide additional loan facilities as necessary, while other investors will also extend their existing loan facilities until July 2019.
“The board is satisfied that those parties will continue to provide financial support and have satisfied themselves as to the validity of the undertakings,” says the report. “The board acknowledge that had these assurances not been secured then a material uncertainty would exist which may cast doubt over the group’s ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business. With the appropriate assurances obtained and the continued support of the investors, the board believe that such uncertainty has been removed.”
Rangers, who will hold their annual general meeting in Glasgow on 30 November, hope to secure agreement to launch a share issue in 2018 to raise fresh funds.
“The board and the 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 very challenging operating environment,” said King.
“During the year under review I am pleased to say the board secured an extremely 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, which has been a true constant, means we cannot 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. All our work and diligence is for them.”
Meanwhile, Graeme Murty says he is ready for the challenge of managing Rangers on a permanent basis and does not believe his lack of experience in senior coaching should count against him.
The 42-year-old has the second match of his second period as interim manager of the Ibrox club this afternoon when they host Partick Thistle in the Scottish Premiership.
Murty earned the admiration of Rangers fans in his first caretaker stint following the departure of Mark Warburton, and his approval rating soared last Saturday when he oversaw a 3-1 win at Hearts in his first game since stepping in again following the sacking of Pedro Caixinha.
The former Scotland defender is rated as one of the leading contenders for the vacancy by the bookmakers but more established club managers, including Aberdeen boss Derek Mcinnes and former Newcastle and Crystal Palace manager Alan Pardew, lead the market.
But Murty, while admitting he cannot be certain if the time is right for him to step up from development coach to the unforgiving world of firstteam management, confirmed he would jump at the chance if it was offered.
“If the board said ‘Graeme, it’s yours, take it’ – then, fantastic. Great. I might even crack
a smile. You would be crazy to turn this job down.
“For all that it’s a high-powered and high-pressured job, this is one of the stellar jobs in British football.
“You can’t turn it down. Just as I couldn’t turn it down when the board said to me last week ‘Would you step up?’.
“I don’t think this job is too big for someone taking their first steps as a full-time manager. This is the first and last time I will use the name Zinedine Zidane, but he hasn’t done too badly in his first managerial job at Real Madrid.
“I think the right person is the right person, regardless of when they get the job. The honest answer is, I don’t know [if I’m ready]. To caveat that, if I was given an opportunity to be manager, I wouldn’t change. You wouldn’t see any difference in me when I sit in front of you. It would just be me with a different title.”
Murty, however, is keen that his lack of bullishness in terms of self-promotion is not confused with any shortage of confidence in his qualities or potential as a coach.
“Just because I talk mostly about the collective, about empowering players – that doesn’t mean I don’t believe in my own ability,” he added.