Dave King has warned Ibrox shareholders over the risk of collapse.
Since the South African based tax criminal came to power in March 2015 the company has racked up £43m of debt which has largely been converted into worthless shares with several dilutions.
That business model is far from sustainable although with no Financial Fair Play in Scottish football they can continue to do as they wish without any sporting sanctions.
The club’s recently published accounts recorded a £10m funding gap for this season but that made no allowance for a January pay out to Sports Direct of many millions of pounds.
With King a financial pariah after being Cold Shouldered by the Takeover Panel further share issues are unlikely with only Alex Rae and rumours of mystery investors likely to keep the lights on until the end of the season.
From today’s AGM the Daily Record reported at 10.24:
King not satisfied with financial situation. He said: “How can I be satisfied with loses of £25m in recent years?” He says it was the only way to meet demands of supporters and the board were willing to spend in excess of that they earn. He was willing to do it but can’t do it for too long “without risk of collapse.”
Says the club needs to get to get back to financial security.
Unless they wish to greatly reduce running costs there is no route to financial security.
[ad_pod id=”rezonence”]
The loss to 30 June 2019 was £11.3m, since then the club has committed £10m in transfer fees to Filip Helander and Ryan Kent.