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Rangers need more cash to pay for day-to-day expenses

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RANGERS last night revealed they will require “significant further funds” to meet their day-to-day costs by the beginning of next year.

The club posted an £8.3million loss in their latest financial accounts, published last night. Figures for Rangers International Football Club plc to June 30 this year show losses have almost halved from around £14million last year but again laid bare the precarious cash picture at Ibrox.

The accounts showed that former chief executive Graham Wallace, who received a £100,000 pay-off when he left the club following the completion of Ashley’s loan deal, picked up nearly £380,000 between November last year and June 2014.

Former finance director Brian Stockbridge, who became a hate figure for fans due to his relationship with Charles Green, pocketed nearly £220,000, while Craig Mather got a bumper £350,000 golden handshake when he resigned as chief executive in October last year.

While there was £4.6m cash in the bank on June 30, just over £3m of this is related to Rangers Retail Limited and “not immediately available as working capital”.

There were also increases in money received from sponsorship and advertising and broadcasting rights but there was a £323,000 reduction in commercial revenue.

It leaves Rangers facing another cash shortage unless they can source more outside investment, with the board set for a stormy shareholder summit when fans and investors gather at Ibrox for the AGM next month.

Auditors Deloitte warn that the firm “requires additional funding to continue to meet its liabilities as they fall due”.

But Rangers say they have “several options open to them to raise the required funds and have been approached by several parties wanting to offer funds on a secured basis”.

Most of the cash, which is likely to come from a fresh share issue if the motion is agreed by shareholders at the AGM on December 22, will be required in the early months of next year as the board continues to face significant funding issues while Ally McCoist’s side bid for promotion back to the Premiership this season.

The Ibrox hierarchy have come under huge pressure from supporters in recent months and will again face tough questions after posting accounts that also show that:

l Revenue is up from £19.1million to £25.2m;

l Staff costs were down from £17.9m to £14.7m;

l Revenue from season tickets dropped from £8.1m to £7.7m;

l Cash at June 30 was £4.6m;

l Retail revenue rose from £1.6m to £7.6m;

Rangers have faced a number of cash challenges in the last 12 months and, after repaying loans to Sandy Easdale, chairman of the club’s football board, and fan George Letham worth a total of £1.5m, the Ibrox side had to take out two loans totalling £3m from Newcastle United owner Mike Ashley while an open share offer raised £3.13m.

In his report to shareholders, RIFC plc chairman David Somers again outlined the reasons behind the board accepting a deal from Ashley in favour of a £16m bail-out from Dave King’s consortium and an offer from businessman Brian Kennedy, a call which infuriated supporters.

Somers admitted there would be more “testing times ahead” for Rangers but said he was “confident we’ll continue to successfully clear every hurdle put in front of us”.

The club last week confirmed that 10 members of behind the scenes staff at Ibrox had been made redundant and overall staffing levels and costs have been reduced in the last 12 months.

A total of £1.9m has been saved on wages, with manager McCoist’s decision to half his annual salary and a reduction in the cash paid out to players playing a significant part.

The ratio of first team wages to turnover has been reduced from 43% to 26% but season ticket sales and average attendances fell by around 2000 and 4000 respectively.

Somers said: “Some fans decided not to renew their season tickets but stated that they will continue to support the team by attending on a match-by-match basis. We respect everybody’s decision to make the choice they feel is right for them although, at the time of writing, the number of fans attending our home league games so far this season is down year-on-year.

“This has had a large negative effect on our balance sheet and reduces our ability to move forward with the desired momentum and the club has been compelled to seek additional funding.”

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Rangers need more cash to pay for day-to-day expenses

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