The cost of the Government’s bail-out revealed
Premiership champions Rangers are the top tier’s biggest borrowers from the Scottish Government.
Holyrood has paid out more than £25-million in loans to the country’s elite clubs in the last year to help them cope with the financial problems brought on by the Covid pandemic.
Rangers have received the most (£3.2m), with Celtic the only one of the 12 top-flight clubs not to request money from the public purse.
In June, 2020, it was announced in the Scottish Parliament that emergency loans would be made available to Premiership clubs who had suffered .
That facility has been increased since then.
Spectators have been banned from attending matches since March last year, and the subsequent loss of ticket money, catering and corporate hospitality has hit clubs hard.
So far, those clubs have borrowed £25.26m from the Scottish Government.
They can continue to appeal for more cash until the end of next month, and they have until 2042 to repay Holyrood.
Rangers revealed the size of their loan when they launched their most recent share issue 18 days ago, asking fans to contribute £6.75m for the new shares, with a minimum spend of £500 and a maximum of £100,000 allowed.
Their share prospectus disclosed “a loan of £3.2m provided by the Scottish Government. This loan is interest-free and to be repaid in equal monthly instalments commencing
September 1, 2022 and continuing until August 1, 2042”.
A Scottish Government spokesperson said: “The Scottish Government responded to requests from top-flight club to provide financial support as they faced unprecedented losses, and an uncertain future at the height of this pandemic.
“All 12 top-flight clubs in Scotland were invited to apply for a share of the initial £2m Premiership Division Support Fund, with each club’s share capped at the total losses and additional costs which clubs faced as a result of the pandemic.
“The amount of loan funding was increased to £25m earlier this year.
“This money formed part of the £55m Emergency Sports Fund put in place by the Scottish Government because of the pandemic.
“No club received any more than their losses as a result of the pandemic.
“As clubs will have different outlays and
running costs, the value of the loans varied.
“These are loans which will have to be repaid by all borrowers over an agreed timescale to the Scottish Government.”
BORROWING TABLE RANGERS – £3.2m ABERDEEN – £3.119m MOTHERWELL – £2.959m HIBERNIAN – £2.882m DUNDEE UNITED – £2.818m
ST JOHNSTONE – £2.6m KILMARNOCK – £1.828m LIVINGSTON – £1.783m ST MIRREN – £1.764m ROSS COUNTY – £1.158m HAMILTON ACCIES – £1.151m
CELTIC – Nil.