It was the most straightforward of announcements, straight from Companies House.
After 18 months of record income Rangers International Football Club had issued new shares to a number of investors in return for the unusual sum of £1.93m. It sounded like they had asked them to throw in whatever they could.
Everyone in and around football knows that the financial year is front-loaded to use a phrase that Craig Whyte favoured when discussing investment plans.
Season Ticket money pours in during the summer, perhaps some transfer fees plus UEFA income and gate money from European matches.
That is the guarantees, what you budget on and you retain enough to see you through the second half of the season through to Season Ticket renewals.
Rangers issue over 7 million new shares as Ibrox club return to trusted cash boost formathttps://t.co/pX11pYdupK pic.twitter.com/1FDKTxNKbo
— Daily Record Sport (@Record_Sport) April 3, 2023
Having to further dilute their shares to keep the lights on in the same season as selling players for over £30m and earning mega dosh whilst being the worst ever Champions League team.
What happens when they have no big sales this summer or don’t qualify for the CL next season? pic.twitter.com/mhzG72zdGP
— RhebelRhebel (@RhebelRhebel) April 3, 2023
Rangers issue millions of new shares ahead of club’s accounts releasehttps://t.co/UqmEGDsM8b
— Scottish Sun Sport (@scotsunsport) April 3, 2023
On January 31 there was a warning when shares were issued, presumably to make up for the fact that there wasn’t a Nathan Patterson deal in January.
Last year there were four Europa League ties to make ends meet but yesterday it was announced that a further £1.93m was needed to meet the end of March payroll.
In the real world that would cause concern, clearly the budget projections boosted by a Champions League campaign and fees for Joe Aribo and Calvin Bassey didn’t meet the demands of the second half of the season, perhaps the consequences of signing Todd Cantwell and Nico Raskin.
Season Ticket renewals are due out soon- a club enjoying a successful season can expect a rush of renewals, the events of Saturday at Celtic Park won’t just be felt on the park as Stewart Robertson tries to make ends meet.
CLICK HERE for Companies House announcements.
If this debt for shares, doesn’t that mean there is no injection of cash just a reduction of debt?
Editor: ‘Investors’ have helped pay bills, club has no money to repay them so they issue them with shares worth 25p, good luck trying to sell those shares for 25p #WATP
What I’m keen to know is, how this issuing of new shares to bring in money might impact on the new FSR rules.
We might get some info on that from Phil McG. or would like to comment Joe?
Editor: The new rules are untested, we know it is UEFA reviewing rather than the SFA which is a positive. I think UEFA restrict squad sizes and set out financial targets rather than ban clubs. New territory and as ever the other mob are chancing their arm, it didn’t end well in 2012 for a previous club.
Issuing shares to pay of Investor loans is fine and dandy if you are turning over a profit and running a business within its own means.
However The Rangers International Fc haven’t turned a single penny in profit in 11 years of trading but rather have lost over £140m in that same time frame despite reaching a European Final and selling two key assets for a reported £25-30m (depending on what comic you read) they posted a further loss of just under £1m last Season .
Meanwhile in the background you have around 24 separate share issues that have diluted the shareholding so much it’s like paying for half a can of Top Deck and expecting to get blootered at a school disco from it.
UEFA have them on a watch list because they can see what is happening and are trying to stop Clubs pulling the same trick of living beyond your means and denying Clubs who are run properly a better chance in their Competition.
If you look at Club 1872 for example of how these share issues affect other Shareholders they had a bigger share of the Club in 2016 than they do in 2023 despite trebling their overall shareholding meanwhile.
Their fans are so thick however they simply do t get what is going on.
Editor: Outstanding summary, a Dummies guide to Dummies.
Flicking the middle finger at EUFA…..
HH