Rangers announce £17.2m losses
Last updated 29th Oct 2024
Rangers made a net loss of £17.2million last season despite implementing the first part of cuts in the first-team squad.
The club delivered record revenue of £88.3million but total costs remained steady and a player trading loss of £8million contributed to the overall figures.
The annual review stated that Rangers had made major strides in reducing an operating deficit from £10.5million to less than £2million.
The club's business review said: "Realignment of costs has been made across the business, but particularly in the first-team squad cost, which reduced by £2.5million. This is anticipated to reduce by a further £6million in the coming year since the summer 2024 transfer activity.
"A strategic review of the player trading model was undertaken after (director of football recruitment) Nils Koppen joined the club.
"Together with the manager, and with the support of the board, there has been a focus on reducing the age profile of the squad, ensuring the first team wage budget is commensurate with our business model and delivering enhanced squad value through acquisition of top-rated young talent.
"Delivering on the player trading model is critical to the future success of the club."
Costs associated with transfers and the value of the squad were listed at £13.6million with player gains at £5.6million and the club stated that their minimum target is to balance transfer business.
"The investments made in the January and summer 2024 transfer windows provide the board with additional confidence on the future success of the player trading model," the review added.
The report stated that the board had, during the financial year, approved the conversion of £9million debt into equity with remaining loan balances being moved into a new long-term facility. Finance costs of £4million were incurred during the 12-month period.
The report added: "As part of the refinancing, the club will draw down a further £4million in debt funding. Additionally, our investors continue to be supportive and have agreed a funding plan to raise an additional £8.6million of equity."