Bank's tight grip on spending will harm Rangers' title bid, says David Weir

[ian1964 10,409]

RANGERS captain David Weir has accused the club's bankers of unreasonable behaviour in placing fresh restrictions on manager Walter Smith ahead of the forthcoming transfer window.

 

The veteran defender is bemused by the policy, confirmed again by Smith earlier this week, which currently means no funds will be available to spend in January for either permanent or loan signings.

 

With Rangers still in limbo as they await the outcome of the latest takeover bid for the club from businessmen Craig Whyte and Andrew Ellis, Lloyds Banking Group continues to dictate the financial management at Ibrox.

 

Weir believes Rangers' bid to win a third successive SPL title this season and qualify for next year's Champions League could be seriously compromised if they are not allowed to strengthen the squad next month.

 

"It seems illogical that we can't sign any new players in January," said Weir. "Given how successful we have been in reaching a European final and playing in the Champions League, reducing the wage bill and the squad at the same time, you wonder how much further you can go down in terms of numbers and still be competitive.

 

"I'm an amateur when it comes to finances, but you look at the debt and the money brought in since the manager took over. You'd like to think that you could have wiped out the debt in that time with the money we've brought in. I'm obviously missing something."

 

Lloyds last night declined to comment on Weir's criticism.

 

Rangers' debt in their most recent annual accounts stood at �£27.1 million, of which �£22.3 million is owed to Lloyds and incorporates their long-term loan agreement with the bank and overdraft facilities.

 

A two-year transfer embargo was lifted by Lloyds last summer, allowing Smith to spend �£5.25 million in transfer fees on strikers Nikica Jelavic and James Beattie and secure the loan signings of Vladimir Weiss and Richard Foster.

 

That investment was offset by the sales of Kevin Thomson and Danny Wilson for �£4 million, however, while four other senior players left the club at the end of their contracts.

 

Rangers raked in almost �£14 million from their participation in the Champions League group stage last season, allowing them to record a profit of �£4.2 million, and will earn even more from the current European campaign which has seen them finish third in their Champions League group to progress to the knockout stages of the Europa League. Weir is also concerned that they may face that challenge with their existing squad further diminished as prize assets such as Scotland goalkeeper Allan McGregor are vulnerable to potential transfer bids.

 

"That's what the manager and his staff are fighting," added Weir. "You cannot underestimate the job we've done with one hand tied behind our back.

 

"It's not inconceivable there could be departures next month. It's the reality of where we are at (with the bank].

 

It's no secret that, if a right bid comes in, then the player will go. We'd prefer everyone to remain and keep our best players to be successful, but it's out of our hands.

 

"The tightness of our squad has been the basis of the success we have had in recent seasons, but that can change as well."

 

Weir was speaking at Hampden, where he promoted ESPN's live coverage of SPL football over the festive period which will begin with Rangers against Motherwell at Fir Park on Sunday. He was joined by Celtic captain Scott Brown, who made his return from injury as a substitute in his team's 1-1 draw at home to Kilmarnock on Tuesday night. The 25-year-old midfielder is likely to be restored to the starting line-up on Sunday when Celtic seek to put their recent stuttering form behind them for the visit of St Johnstone.

 

But, while manager Neil Lennon is able to add to his squad next month, Brown insists Celtic already have the strength and quality required to overhaul Rangers and win the title for the first time in three years.

 

"Our squad is probably the best in the league, to be perfectly honest," said Brown. "We've got around 25 or 30 player who can come into the first team at any time. We've pretty much got two good starting elevens. If we went through January without buying a player, we would still be fine.

 

"We have a big game on Sunday and we need to keep close to Rangers before the Old Firm game at Ibrox on 2 January.

 

"There is no real concern about our form. We are looking good in training and we are dominating teams in games. We are putting the ball in the box and we just need a bit of luck."

 

http://sport.scotsman.com/football/Bank39s-tight-grip-on-spending.6670700.jp?articlepage=2

[calscot 0]

You've got to wonder what damage Celtic are doing to their finances if our position is anything to go by. Their squad seems to be at least 50% bigger than ours with, I presume, a higher wage structure, and yet they are bringing less money in than us when they miss out on the CL and we're in it.

 

In an even season. Europe-wise. they somehow bring in a few more million than us, although it's hard to compare due to them still having their own merchandising arm. But it doesn't account for their much higher spending and I can only assume we will be able to afford the same once we stop paying back our debt at an extraordinary rate.

 

It looks like we paid off about 15M worth of liabilities last year with a 5M profit and set to do the same this year.Once we're debt free, qualifying for the CL will guarantee a windfall which we can actually spend.

 

It's such a shame that we're being handicapped in the pursuit of a higher coefficient ranking which would guarantee the champions a place, and at the same time Celtic and the rest of the league are performing no better in Europe than the league of Wales.

 

A takeover of the club which wipes out the debt would immediately put us in a better position even without the rumoured 5M minimum spend clause. I really believe the club is being run incredibly over-lean to accelerate the repayment of debt to the bank - something that doesn't make sense since the majority of the debt is a legacy long term loan with an agreement to pay back 1M of equity a year - an amount even a poorly performing Rangers FC can comfortably service year on year.

 

The bank, which already shown complete ineptitude in its own field of business to the extent of damaging the financial health of the whole nation, seems to be interfering in a naive, incompetent and damaging way on the business of our club - a situation that has baffled most as to the motivation.

 

The sooner we are lifted from the shackles of Lloyds' anti-business gurus, the quicker we can recover from the financial malaise that has affected us for too long.

 

We'll still have to run our club prudently - something we seemed to have finally learned, but at least the club will be able to breath and function in a way that allows us to nurture the club, improve the product on the pitch and generate ongoing income rather than being strangled to death.

Edited December 24, 2010 by calscot

[ian1964 10,409]

You just wonder how much this is affecting the Rangers players and coaching staff!!!,aye I know they are professional and should get on with it, but it must feel like banging your head against a brick wall all the time.It would be nice to hear some positive news regarding our debt to the bank,if there is any???.The players and coaching staff have done a magnificent job throughout this mess hanging around the club,it really does highlight the job they have done for the Rangers,it's just a pity we don't have as good a team off the park.

I have to agree with calscots' comments on the BHEASTS,it's amazing how they can keep spending,signing players and yet be behind Rangers for the last two years especially,the lack of success and in particular CL and the money that brings in,this must put their finances in a weak position,no?.

[Zappa 0]

You've got to wonder what damage Celtic are doing to their finances if our position is anything to go by. Their squad seems to be at least 50% bigger than ours with, I presume, a higher wage structure, and yet they are bringing less money in than us when they miss out on the CL and we're in it.

 

We actually both have a first team squad of 31 or 32 players, but in our case a good number of our current squad have come through from Auchenhowie and won't be earning anywhere near what our 17 or 18 senior players earn. I'd imagine that Celtic maybe have 25 or more senior players in their 1st team squad, so will definitely have a much much bigger wage bill.