Alastair Johnston has denied that the current club at Ibrox will follow the previous one into liquidation.
The American based businessman was chairman of the club until Craig Whyte took charge in May 2011- within 12 months the club was in administration and about to take the liquidation option.
Last night a club statement announced wage deferrals effecting the first team squad and management which is apparently necessary to ensure that the cleaners and tea-ladies will get 20% on top of their Furlough payments.
It seemed drastic action with The Sun and others publishers reporting 50% deferrals, strangely other than Steven Gerrard and James Tavernier no one else has commented on the deferrals.
In November last year the club announced a £10m shortfall for the season which made no allowances for pay-outs to Sports Direct, Memorial Walls or Hummel/Elite.
Interim chairman Douglas Park has a number of cash flow issues to deal with but in an interview with The Times that appears to have been conducted before last night’s announcement Johnston has reassured fans that there is no prospect of liquidation.
Johnston admits it will be a tough period, but insists there is no comparison with the financial problems that forced Rangers into liquidation several years ago. “We are not dealing with anything today that every other club are not dealing with. There is a herd out there and a lot of precedents to be set. Unlike previous situations, where we were challenged by being in isolation, we are part of the congregation at this point. What a lot of other entities do has an impact on what we do.
“Rangers’ board have been very active in that regard, very active with conference calls, meetings etc. But it’s very tough to make a financial plan because it changes all the time. Circumstances that change literally by the day can really impact your ability to establish some sort of stability.”
[ad_pod id=”hoopla”]
Tomorrow the SPFL Premiership clubs will host a conference call with no decision likely on the outcome of the 2019/20 season.