European exit set to hit Ibrox finances

[ian1964 10,413]

Graham Spiers

 

Rangers are believed to be about to reveal a slight downturn in their financial fortunes for the first six months of the current season when the Ibrox club releases its half-year accounts this afternoon in Glasgow.

 

Having reached the Uefa Cup final and very nearly won the Clydesdale Bank Premier League last season, Rangers' fortunes suffered a setback when they failed to qualify for the group stage of the 2008-09 Champions League, a factor that has impacted on the club's turnover figure for the first half of the season.

 

Rangers' turnover to December 31 should still be in the region of �£30million, though the club is expected to have taken a hit due to its non-participation in Uefa's premier club tournament. The Champions League - even with Celtic sharing Scotland's pot of money - would have netted Rangers an extra �£8million to �£9million in ticket sales and other retail spin-offs in the run up to Christmas last year.

 

Against that, the sale of Carlos Cu�©llar to Aston Villa for �£8million in August will have softened the blow of missing out on a Champions League windfall. Without the Cu�©llar sale, Rangers' six-month figures would have been much tougher.

 

This time last year the club recorded encouraging half-year figures, with turnover up by �£10million to over �£33million, though that was mainly due to their 2007 Champions League adventure. Today's figures are expected to show a dip by comparison.

 

Sir David Murray, the Rangers chairman, will preside over today's interim accounts, and is also expected to clarify the current debt situation at Rangers, which is estimated to be in the region of �£23million. Murray has repeatedly stated the importance of playing in the Champions League as the key to Rangers' financial performance in recent years.

 

ââ?¬Å?For the Old Firm, who do not have access to the riches of some of the other big leagues of Europe, the importance of Champions League participation cannot be over-estimated,ââ?¬Â one football analyst told The Times yesterday. ââ?¬Å?It is tough if they miss out on the group stage or beyond, because of the obvious earning power of the tournament. So the defeat to Kaunas back in August [in a Champions League qualifier] will have hit Rangers hard.ââ?¬Â

 

The current debt of Rangers is intriguing, given Celtic's revelation last week that they are just �£900,000 in the red. There has been a distinct divergence in fiscal policy between the Old Firm in recent years, with Celtic feverishly trying to eradicate their debt, while Rangers have allowed theirs to climb steadily upwards again.

 

Between 2003 and 2007, Rangers successfully arrested their bank borrowings from a frightening high of �£80million to around �£5million, though in the last 18 months the figure has risen sharply again. Murray and Rangers took some flak recently for revealing that they hoped to sell one of their main playing assets - either Kris Boyd or Barry Ferguson - to ease the financial pressure at the club.

 

http://www.timesonline.co.uk/tol/sport/football/scotland/article5810535.ece

[Norris Cole 0]

Sorry who wrote that, Spiers?

 

Damn, I was going to read it as well . . .

[maineflyer 0]

Sorry who wrote that, Spiers?

 

Damn, I was going to read it as well . . .

 

Spiers didn't write that, I'd bet money on it. That was almost certainly written by Mr Cutandpaste, a well know contributor to the Spiers portfolio of misappropriated reputation.

[Bluedell 5,329]

I find it hard to believe that the debt is as low as �£23m, not that it's disclosed in the accounts that we will issue.

 

I also don't believe his estimate of turnover of �£30m. I'd say it was going to be under �£25m.

 

Perhaps he's got the figures round the wrong way?

[Super_Ally 0]

I find it hard to believe that the debt is as low as �£23m, not that it's disclosed in the accounts that we will issue.

 

I also don't believe his estimate of turnover of �£30m. I'd say it was going to be under �£25m.

 

Perhaps he's got the figures round the wrong way?

 

Speirs making factual inaccuracies?

[Bluedell 5,329]

Speirs making factual inaccuracies?

 

Maybe, but I don't want to make too much of a fuss about it, in case I've got it all wrong.

 

[Bluedell 5,329]

I find it hard to believe that the debt is as low as �£23m, not that it's disclosed in the accounts that we will issue.

 

I also don't believe his estimate of turnover of �£30m. I'd say it was going to be under �£25m.

 

Perhaps he's got the figures round the wrong way?

 

Turnover was indeed under �£25m, so Spiers was wrong yet again. His estimate of the debt is widely out as well.

[Super_Ally 0]

Turnover was indeed under �£25m, so Spiers was wrong yet again. His estimate of the debt is widely out as well.

 

What is the debt, I didn't see that in the article?

[Bluedell 5,329]

They never disclose the debt in the half year accounts (unlike celtic who have different rules as they operate on a different stock exchange from us).

 

My estimate would be around �£30m, but it's difficult to calculate accurately due to lack of information on transfer payments in and out, the JJB payments etc.

[Super_Ally 0]

They never disclose the debt in the half year accounts (unlike celtic who have different rules as they operate on a different stock exchange from us).

 

My estimate would be around �£30m, but it's difficult to calculate accurately due to lack of information on transfer payments in and out, the JJB payments etc.

 

Cheers, good to have someone on board who can quickly answer these questions. Accounting goes right over my head.