New £10m Ibrox loan is bad news for Micky Beale’s Transfer War-chest

Despite record breaking turnover, record breaking profit (a loss of £900,000) and record breaking player sales RIFC have taken on a £10m loan from John Bennet since the club published their accounts for the year to 30 June 2022.

The loan from the vice-chairman comes with a 5% interest rate, since Dave King was repaid with interest in 2021 other investors/loanees have insisted on an interest rate rather than being repaid in worthless shares.

Bennett should pick up £500,000 in interest per year on his loan which is the equivalent of around 800 full priced Season Tickets.

Predicting a £10m shortfall on income against expenditure this season isn’t a good look for Micky Beale’s Transfer war-chest, it looks like sales will be order of the day with a few player loans similar to Aaron Ramsey, Amad Diallo and James Sands will be thrown at the manager to make the most of.

Covering the loan from Tuesday’s AGM, the Glasgow Times reports:

The deputy chairman also explained some of his loan has been converted into club equity. He revealed his equity has risen to 5.1 percent with £500k of his loan shifted into equity.

Mr Bennett then, offering his own “valid context” to the question, explained he has given the club a further “new working capital facility” of £10m with a five percent interest rate.

“The outstanding loan on the seven-year facility – which now has six years to run – is £8m,” said Mr Bennett in response to the loan repayment question. It’s the same rate as last year, which is six percent.

“Can I put that in a wee bit of context just on my own personal commitment to the club. Some of my loan has been converted to equity, £500,000.

“I’ve since then bought shares, so I’ve gone to 5.1 percent of the equity. I’ve also in recent weeks given the club a £10m overdraft facility at five percent. So my commitment is now £23m.”

Some good news is that John Souttar is expected to resume light training in the next 7 to 10 days.