Blues lose £6.7m in course of the year

RANGERS recorded a loss of £6.7million for the year end to June 30, 2017, as turnover and operating expenses both increased during the same period.

Accounts for Rangers International Football Club plc were released on Friday evening and show that losses for the 12 months more than doubled from £3.3million last year.

But that figure includes a £3million payment to Sports Direct as part of the agreement that saw the Ibrox board renegotiate the retail contracts in favour of the Light Blues.

Rangers announced in June that they had finalised terms on a new one-year deal with the Mike Ashley owned firm as the long-running dispute between the billionaire businessman and chairman Dave King came to an end.

And the one-off fee that was handed over to Sports Direct makes up almost half of the losses that were incurred as Rangers look to benefit from increased merchandise income going forward.

Other key figures include a rise in turnover from £22.2million to £29.2million from the previous accounting period, while operating expenses are up from £24.9million to £32.9million.

Rangers saw an increase in both their season ticket sales, up to 43,253, and home attendances as average Ibrox gates in the SPFL rose to 48,893.

Chairman Dave King and The Three Bears have provided interest free loans to RIFC plc and a seven-figure fee is a paper charge rather than a cash transaction as a result of new accountancy practices.

It is forecast that an additional £4million worth of funding will be required by the end of the 2017/18 campaign, with the first tranche needed this month.

A further £3.2million is then forecast to be required next season, dependent on how Rangers fare on the field and the accounts state: “The Board have discussed the Club’s forecast cash shortfall and have reached an agreement with New Oasis Asset Limited whereby they will provide additional loan facilities as necessary to meet the above requirements.”