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Cash strapped RIFC convert £4m loan to shares- their third issue in less than a month

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Rangers International Football Club (formerly Sevco 5088) issued another £4m of shares yesterday- the third time in less than a month that loans have been converted to worthless shares.

The club last published accounts for the year to 30 June 2020 which showed an increase in turnover and also an increase in losses with a deficit of £15.9m on turnover of £59m.

That period included gate money from nine Europa League matches and four glamour friendlies, no fans have been inside Ibrox since 12 March 2020.

On 19 March 2021 shares ‘worth’ £3.25m were issued, on 30 March a further £2.2m of debt was switched to loans to make it a total of £9.45 of debt/loans removed over three weeks.

In order to play in UEFA competitions clubs must publish interim accounts upto 31 December in the season before they take part. Fortunately, with no Financial Fair Play rules in Scottish football this process has always been a formality.

Since the start of the financial year the club has committed around £10m to transfer fees for Cedric Itten, Kemar Roofe and Ianis Hagi with less than £200,000 brought in from the sale of Greg Docherty.

With no ticket sales from European matches, hospitality and friendlies it is likely that more loans will be converted to shares before Season Ticket money for 21/22 is raised.

As long as mystery investors are prepared to lump in millions then have them converted into shares there is no danger to the future of the club. Last October Hong Kong based Stuart Gibson bought £5m of shares, his holding has already been greatly devalued.

Dave King is due repayment on a loan with the shares that he is trying to sell to Club 1872 further diluted by the three issues since March 18.

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