Yesterday, Companies House announced that Rangers International Football Club had had their fourth share issue in a month. Converting a loan of £430,000 into 2,150,000 shares.
Converting a loan for that sort of sum into shares suggests that there isn’t much or any cash inside the club at this moment or conventional overdraft access.
According to their 2020 accounts the club generated £59m in the year to June 30 which recorded a loss of £15.9m. Simple arithmetic suggests that the club was spending £6,241,000 per month. A loan of £430,000 wouldn’t last long even if they have pegged spending to last season’s levels.
Last season the copany benefited from fans attending four glamour friendlies and seven European ties, this season they have only had Season Ticket money and income from pay-per-view to match fixed monthly costs.
According to Companies House there has been share issues on 21 March, 31 March and 9 April as well as yesterday’s announcement.
With no form of Financial Fair Play in Scottish football the club can sustain itself any way it likes, it seems that there is an endless supply of individuals prepared to loan money that is then converted into shares which are quickly diluted further.
In October Stuart Gibson invested £5m into the company- one of nine such deals completed since the season started. This week the club will launch their Season Ticket renewal campaign with a May 17 deadline expected.
On December 1 Dave King struck a deal to sell his shares to Club 1872 for 20p per share.
Companies House records the club being incorporated on 16 November 2012.