Win title or a financial meltdown may cripple Ibrox club

[ian1964 10,413]

by Matthew Lindsay

 

RANGERS must land the Clydesdale Bank Premier League title if they want to avoid experiencing serious money problems in the future.

 

That was the warning from financial expert David Glen today after the Ibrox club announced it has made a �£4million loss in its interim results.

 

Glen, a senior partner in Pricewaterhouse Coopers, was unsurprised the Light Blues had performed so poorly.

 

Walter Smith's team failed to make it to the Champions League group stage when they lost to Lithuanian minnows FBK Kaunas in the second qualifying round in August.

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As a result of that major disappointment, the Gers turnover was down dramatically to �£20m for the six months to December 31, 2008, from �£33m the year before.

 

Those figures are in stark contrast to their Old Firm rivals Celtic who made a six- month profit of �£8m in the corresponding period.

 

And Glen, who estimates the Gers debt is now around the �£25m mark, believes being crowned champions this season is vital to stave off the effects of the credit crunch.

 

He said: "The results are pretty much as expected. Basically, this is what happens when a club doesn't have European football. That makes such an enormous difference to clubs financially.

 

"In the last five seasons, Celtic have been pretty much ever-presents in Europe and that is a large part of the reason why they are in such a healthy position financially.

 

"Rangers, despite reaching the Uefa Cup final in Manchester last season, have not been so successful. Hence the reason their debt is, at an educated guess, around about the �£25m mark."

 

Glen added: "The trouble is that in the past when Rangers were in this situation they would work on the basis that they would get back into Europe the following year, or even the year after that.

 

"They would work on the basis that things would come right. Often, they would turn to the bank to lend them more money. With the banking situation the way it is now, though, they can't gamble like that as much as they have done in the past.

 

"They are on a knife-edge. Going another season without Champions League qualification is going to hurt them.

 

"The crucial thing is they win the Clydesdale Bank Premier League. If they do, they qualify automatically for the Champions League group stage. If they don't, they need to get through two qualifying rounds.

 

"They will be up against a better standard of opposition in the 2009/10 season, too. They will come up against good teams from Russia and the like. It will be a tough task to make it.

 

"If they get into the group stage, their income is far more predictable. They will pick up �£10m - possibly �£12.5m if the second-placed team doesn't qualify for the group stage - and will be in a far healthier situation."

 

However, Glen, an authority in the field of football finances, feels Rangers may attempt to trim their squad of first-team players in the summer even if they pip the Hoops to the SPL trophy and get into the Champions League group stage.

 

Sir David Murray provoked outrage among the Gers support when he agreed to sell top scorer Kris Boyd to Coca-Cola Championship club Birmingham City for a �£3.8m fee in the January transfer window.

 

Boyd, a lifelong Rangers supporter, dug his heels in and refused to join up with former Gers boss Alex McLeish at the St Andrew's Stadium - despite the promise of a hefty pay rise.

 

But there were serious fears that several first-team players, including keeper Allan McGregor, defender Madjid Bougherra and midfielders Barry Ferguson and Pedro Mendes, would be offloaded in an attempt to balance the books.

 

Glen continued: "As Sir David Murray said over the weekend, this (the club's interim results showing a �£4m loss) is what happens when a club has European overheads without European income.

 

"The second half of the season is, in comparison with last year when they reached the Uefa Cup Final, are also going to show a huge decrease in income. There will be another significant drop-off.

 

"Rangers just can't risk living with such a big squad any more. They have 28 first- team players at the moment and have said themselves they would like to trim that by about eight players.

 

"I would expect the club to be net sellers in the summer - even if they win the league and get back into the Champions League."

 

 

http://www.eveningtimes.co.uk/sport/display.var.2493042.0.0.php

[maineflyer 0]

They are on a knife-edge. Going another season without Champions League qualification is going to hurt them.

 

It's what you get when you play the game but don't play it well. And I'm not just talking about what we do on grass with a football.

 

These are very, very worrying times.

[Gers4Life 0]

We are all aware that failure to make the champions league would have a serious financial affect on the club and now is the case, so its paramount that we win the title this season or we face more uncertain financial failure in the near future! win the title 100% and shut the mopes up who at pesent are showing a total lack of respect to our club by claiming the title is there's? time to step it up rangers!!

[CammyF 6,781]

And off course this will have a snowball effect - if we don't win the SPL title this season and fail to get to the CL, we'll be forced to sell our 'better players' and this then reduces our chances of winning the SPL title the following season. Add that to the uncertainty of sponsorship, season ticket renewals etc, tough times ahead folks

 

Cammy F

[pete 2,499]

Thanks for that guy's i am away to swallow some jaggy glass to cheer me up,

[Norris Cole 0]

We are all aware that failure to make the champions league would have a serious financial affect on the club and now is the case, so its paramount that we win the title this season or we face more uncertain financial failure in the near future! win the title 100% and shut the mopes up who at pesent are showing a total lack of respect to our club by claiming the title is there's? time to step it up rangers!!

 

If the bheasts can't show respect to our war dead they're certainly not going to show respect to an institution they would have shut down in a second.

 

As for this season's championship, the stakes are that high it's almost unbelievable. And that's not taking into account the massive sense of injustice I'm sure we all still feel over the murky events of last season.

 

The ghost of Kaunas haunts our club. A colossal couple of months ahead.

[Gers4Life 0]

With anticipation i,ll be attending the match on wednesday night a bag of nerves, this is as close as it gets and im really desparate for my club/ our club to win the league! i never bite my nails but recently i,ve started and my nerves are shot at times with fear of failure, i have every belief that rangers will hold on and win this tiltle.

[chilledbear 16]

Nothing we dont already know, that's why 3 points are more important than the performance this season.

[Norris Cole 0]

This is true chilledbear. Unfortunately this season, the way our team has been set out has at times been more conducive to 1 point than 3

 

Like your optimism Gers4Life, however if you're biting your nails at home against the bottom club I don't want to be anywhere near you in May

[alexscottislegend 2,060]

With anticipation i,ll be attending the match on wednesday night a bag of nerves, this is as close as it gets and im really desparate for my club/ our club to win the league! i never bite my nails but recently i,ve started and my nerves are shot at times with fear of failure, i have every belief that rangers will hold on and win this tiltle.

 

You know what? This is so important I would say sod the Scottish Cup and the League Cup if it means we can be injury free for the title run-in. We should use those competitions to give experience to the younger players.