Michael Stewart has questioned the financial gymnastics involved in taking Ianis Hagi to Ibrox.
Over the last two weeks speculation has intensified that the young Romanian is about to become the latest superstar signed to Stop The Ten. That list goes back to Martyn Waghorn and Joey Barton and also includes Eros Grezda, Jermain Defoe and Filip Helander.
On Friday Stewart raised the issue on social media with renowned financial expert pointing out how a queue of investors are happy to donate £10m a year and have their investment turned into worthless shares in a company that hasn’t produced a profit in eight years.
Rae revealed at the end of November that further investment was on the way but no statements have been issued with Dave King stepping down as chairman to put Douglas Park in charge of the company.
Every other Scottish club has been penalised by the overspending at Ibrox with Stewart sharing his concerns in The Sun as he discussed the Hagi deal:
The sums don’t add up. This is a club who lost £11million in the last financial year and needed £10million just to see the season out.
They still have instalments of previous transfer fees that need paid but now they’re talking about a potential £5million transfer. Where’s the money coming from?
The usual explanation is it’s from investors, that the losses get converted into shares. But that not only dilutes your share value the more you do it — it’s not a sustainable model. It also raises questions regarding current Financial Fair Play rules.
Yesterday a report emerged from a Romanian agent that Hagi had signed for the Juventus of Scotland but there has been no statement out of Ibrox confirming the move.
• Where does the money for a substantial transfer come from?
• If the money is there, is Hagi the guy to go for?
• I’m sure the players and staff who have deferred wages will be keen to see what happens.
?????? https://t.co/pZAUSmkaiC— Michael Stewart (@mstewart_23) May 24, 2020
Wouldn’t get a place on our bench.
— Gavin Turnbull (@GavinTurnbull91) May 24, 2020
£5 million on a player when current squad are not being payed a full wage due to deferrals, how does that work?
— Jamie (@51hmfc) May 24, 2020
Didn’t Alex Rae explain it all to you the other day? You know, the guy that doesn’t have enough of a grasp on finance to realise EBTs/side letters are wrong.
— CaptainBucky (@CaptainBucky9) May 24, 2020
