Troubled Sevco are set to arrive in the Premiership with a debt burden of over £20m- more than the turnover in any year in their history.
According to accounts posted on the Companies House website The Rangers Football Club Ltd (formed as Sevco in 2012) has reported an 11 per cent increase in operating losses to £9.04 million for the 2015 year to June 30.
The company, which notes it principal activities are operating a professional football club in Scotland and its commercial activities, notes debts to its parent company Rangers International Football Club Plc (RIFC) also rose to £18.1 million (2014: £15.6 million).
Accounts now filed with Companies House show TRFCL racked up pre-tax losses of £6.85 million in the 2015 year. With Mike Ashley’s £5m loan repaid on 1 January 2016 the club is likely to be close to £25m in the red when Mark Warburton embarks on his bid to win the 2016/17 Premiership title.
Fortunately for the Ibrox club Scottish football has no Financial Fair Play ruling to ensure a level playing field where clubs live within their means.
Despite the recent liquidations of Gretna, Airdrie and Rangers there are no FPP regulations to safeguard clubs with Sevco on course to join that hall of shame.
With Mike Ashley no longer prepared to underwrite the losses Dave King, who hasn’t invested a penny or provided any loan facilities, has had to look far and wide for backers to prop up a business that averages losses of £8m a year on a turnover less than £20m.
Since the South African based criminal came to power the company has been booted off the Alternative Investment Market which has effectively suspended share trading.
Despite being directors of Rangers in the two years before liquidation Paul Murray and Dave King were granted Fit and Proper status by the board of the SFA.
With no stock market listing Mr King has been unable to deliver on his promise of staging a share issue with some reports suggesting that a significant chunk of the 2016 season ticket money will be needed to repay Hong Kong based investors rather than fill up Warbo’s transfer warchest.
The Professional Game Board of the SFA is made up of: Rod Petrie (Scottish FA),Alan McRae (Scottish FA), Stewart Regan (Scottish FA), Ralph Topping (SPFL), Peter Lawwell (SPFL), Neil Doncaster (SPFL), Duncan Fraser (SPFL), Mike Mulraney (SPFL), Sandy Stables (SHFL) and Andrew Waddell (SLFL).
