The Rangers International Football Club has confirmed that former Chairman Dave King is owed £5m which has to be repaid by the end of October 2021. With interest of 8% from the company that he loves.
The club also has a £1.5m loan to Close Brothers that needs to be repaid by the end of this month.
Managing Director Stewart Robertson recently launched a £6.5m share issue to future proof the club for ‘the next 150 years’. The club has less than 150 days to repay Mister King.
The news came to light as fans were given details of the new share issue which has a minimum investment of £500 coming on the back of Season Ticket renewals.
This is for the “Rangers have no debt” crowd.
Per the Rangers Share Issue document, Rangers have £16.8m in loans outstanding. pic.twitter.com/tmdfD1zDYE
— GrandOLTeam (@JBLuvsCeltic) June 14, 2021
Of interest is the £5.25m 6% loans from directors, repayable over 7 years. Those directors had been willing to accept shares until now. Now they want some money back, with interest.
— GrandOLTeam (@JBLuvsCeltic) June 14, 2021
King does have the option to convert his £5m loan into shares but having interest on it suggests that he’ll be looking for the full some, and more back in his South African bank account.
In their last audited accounts, to 30 June 2020, the club announced a loss of £15.9m despite an 11% increase on turnover to £59m.
The year to 30 June 2021 promises to have spectacular losses with no fans paying into Ibrox at any stage. In the year to June 2020 the club had ticket money from eight Europa League matches and four glamour friendlies. No players have been sold in the current financial year with £10m of commitments taken on to sign Kemar Roofe, Cedric Itten and Ianis Hagi.
The Rangers Share Issue is offering shares at 25p., despite their selling for 19p on JP Jenkins.
Rangers have also decided to only reveal year-old financial figures. They could’ve chosen to use the interim they submitted to the SFA for Euro licensing. I wonder why not? pic.twitter.com/eoCp2G5286
— GrandOLTeam (@JBLuvsCeltic) June 14, 2021