The Sun joins the mainstream focus on the Ibrox cash crisis
The Sun has followed The Herard by flagging up the cash crisis at Ibrox.
On November 5 the accounts for the year to 30 June 2021 were published with most media outlets happy to blame the pandemic for catastrophic losses with a ‘player trading model’ required to solve the issues.
Since the £1.75m sale of Josh Windass in 2018 only token fees have been picked up as Ross Wilson gets folk like Greg Docherty, Young McCrorie and Jamie Murphy off the wage bill.
A month before his escape to Aston Villa Steven Gerrard flagged up his unhappiness at the club being unable to spend a net £10m a year as he had enjoyed previously.
Losses of £23.5m on turnover of £47.7m are red flag material in any industry, it seems like the Scottish media are getting wind of how bleak things will be at Ibrox over the winter months.
Rangers finance ‘going concern’ raised by auditors as losses since Dave King takeover total £80millionhttps://t.co/DKlvNeds2F pic.twitter.com/O3YK1QzaRu
— Scottish Sun Sport (@scotsunsport) November 14, 2021
The facility is not a bank, but from 3 RFC investors.
Of interest is Bennett has joined King in no longer wanting shares. He loaned £5.5m that was repaid.
Maybe this is why RFC wanted more STM upfront. Only £7.2m remains receivable v £14.9m last year. Need to pay Bennett. pic.twitter.com/AMZDGS5LyC
— GrandOLTeam (@JBLuvsCeltic) November 6, 2021
The most critical detail in the accounts was Dave King having his loan repaid with interest. Current directors have taken out loans bearing interest to the club, almost certainly they’ll have taken some form of security against the risk.
Losing Steven Gerrard and his coaching team could take around £350,000 off the monthly wage bill but with Kemar Roofe and John Lundstram draining a similar amount it will take some big sales in January and a reduction in the wage bill to prevent Douglas Park from having to pledge even more in loans.