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WALTER Smith has warned of dire consequences for Rangers if they do not resist selling any players during the current transfer window and also retain the bulk of their squad whose contracts are due to expire in the summer.

The frustration Smith has experienced for the last 18 months as the Ibrox club grapple with their financial problems resurfaced yesterday as he responded to speculation linking Pedro Mendes with a move to Sporting Lisbon. Rangers, who have not been

able to buy a new player since August 2008, remain under pressure from the Lloyds Banking Group to restructure their finances and reduce their �£31 million debt.

 

But manager Smith is adamant Rangers cannot afford any further cuts to the first-team squad for the second half of a season which currently sees them seven points clear of Celtic at the top of the SPL and still involved in both domestic cup competitions.

 

While top scorer Kris Boyd has now been offered a new contract, Smith is keen to see the future of other players tied up. Among those whose existing deals also run out at the end of the season are Kirk Broadfoot, Nacho Novo, DaMarcus Beasley and Stevie Smith.

 

"If we don't start to offer some of them the opportunity to stay with the club, then we will cease to operate, never mind anything else," said Smith. "We have been in negotiations with a few others as well as Kris. We have started talking to Kirk Broadfoot and Nacho Novo. It is something that has to happen."

 

With his resources further limited by injuries and unavailability, Smith was forced to fill out his substitutes' bench with four youngsters in Andrew Little, John Fleck, Gregg Wylde and Jamie Ness. He regards it as a clear indication of why Rangers should not be looking to offload senior players such as Mendes.

 

"Who says we are going to get rid of Pedro?" added Smith. "I've not heard anything about getting rid of Pedro, apart from what I read in newspapers. Last week, we only had two senior professionals in Maurice Edu and Stevie Smith on the bench at Celtic Park. We will only have a couple available to us again this weekend. With suspensions set to kick in for the second half of the season, we will need all of our players between now and the end of the season."

 

Smith is still waiting to learn if Boyd will accept the club's offer of a new three-year contract reported to be worth around �£18,000 a week. "His agent spoke with (chief executive) Martin Bain yesterday and he has gone off to think over the offer being made," said Smith. "We've still not heard anything back."

 

One player Smith would be prepared to lose is French winger Jerome Rothen, 31, who has failed to make the desired impact during his season-long loan from Paris St Germain. He is no longer in the manager's first team plans and hopes to return home this month.

 

Rangers begin their defence of the Active Nation Scottish Cup tomorrow and Smith is able to welcome Kenny Miller and Kevin Thomson back from suspension and injury respectively for the lunchtime kick-off against Hamilton Accies at New Douglas Park.

 

http://sport.scotsman.com/sport/Walter-Smith--warns-.5968866.jp

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Broadfoot and Nacho offered new contracts.

Thommo and Miller available this weekend.

Rothen wants to return home (though this contradicts quotes attributed to him elsewhere).

 

In consideration of the financial restrictions we currently operate under it's a fairly positive article I guess.

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