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Scottish Government and their £3.2m Ibrox bail out

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Image for Scottish Government and their £3.2m Ibrox bail out

The club from Ibrox picked up a Scottish Government loan for £3.2m to help see them through the season just finished.

What checks were put in place for public funding is unclear but loaning an eight year old company £3.2m when they managed to post a loss of £15.9m on turnover of £59m looks questionable at best.

Last season the Ibrox club were able to spend £10m buying players from Belgium and Switzerland with their accounts also disclosing delayed payments to HMRC in line with the UK policy designed to support business.

A loan fund of £20m was made available through the SFA/SPFL which would work out at £1.6m per club. It looks as if one club declined that offer with their share given in full to a competitor club.

On January 28, BBC Scotland reported:

The Scottish Football Association is close to agreeing a deal with the Scottish government that will give Premiership clubs access to interest-free loans of around £1.6m.

The borrowed money would be repayable over a period of up to 20 years with no repayment due until 2022 at the earliest.

A £20m package to support top-flight clubs was announced on 10 December. Details of any securities clubs will use to secure the loans remain unclear. However, once applications are made, the funds could be in bank accounts in a matter of weeks.

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