New £3.5m Ibrox loan arrives just in time for November payroll

Rangers International Football Club, formerly Sevco 5088, founded in 2012 have converted a loan for £3.5m in 14m worthless shares, nominally valued at 25p per share.

The loan came in time to fund November payroll and further dilutes the stake in the club held by Club 1872 and Dave King.

With losses of £23.5m reported for the years to 30 June 2021 and just gate money to plug that gap the company is in a perilous state with the recently published accounts noting that £7.5m was needed before the turn of the year.

What happens to fund the club from January is anyone’s guess but unless the mystery investors want to significantly up their backing it looks unlikely that Giovanni van Bronckhorst will be getting a transfer war-chest in January.

Across almost all European associations there are Financial Fair Play regulations in place. Fortunately for the Ibrox operation the only regulations in Scotland kick in if you are late paying player wages.

Celtic were asked about FFP at their AGM earlier this month but it is clearly an issue that the directors have no interest in applying to Scottish football.

As long as someone is prepared to switch capital for worthless shares in a company making losses close to 50% of turnover there is no prospect of the company going into administration.

The recent accounts announced that Dave King has had his loan repaid with interest of £862,000, the company hold their AGM on Tuesday.

CLICK HERE for Companies House statement about new share issue.