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Conditions published of Scottish Government’s £3.2m Ibrox emergency loan

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BBC Scotland has published the conditions attached to the interest-free loans provided to 11 SPFL Premiership clubs by the Scottish Government.

The information comes out two days after serial loser Murdo Fraser bleated to The Scotsman about hostility from the SNP Government to the club from Ibrox.

It seems that the level of hostility reached £3.2m to keep the lights on at Ibrox earlier this year.

BBC Scotland reports:

The borrowing rules state the loans can not be used to pay off existing commercial or director loans and bans most dividend payments.

The Scottish government also expects the 11 clubs to provide it with quarterly financial reports including a balance sheet and actual cash flow against budget.

Repayments of the loans, in equal monthly instalments, is due to start by 1 September next year and end by 2042.

In their recent prospectus Sevco announced that Dave King is due to have a £5m loan repaid by the end of October. So far the club, which has posted losses of close to £100m since formation in 2012, haven’t paid any transfer fees during the current transfer window.

If the club can honour the King loan it can surely repay the Scottish Government allowing money to be spent on hospitals, schools and Care Homes rather than filling the petrol tanks of expensive footballers’ cars.

BBC Scotland and others should be able to obtain the Quarterly Financial reports which should reveal specific areas of spending.

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