It was recently reported in the succulent press that the Serious Professional had made a rather bold statement to a dignified conclave of the Ibrox klanbase.
He said that next year the club would be in profit!
Just for background, since they were formed in 2012, the current Ibrox entity has never broken even, let alone made any money.
So today, I caught up with a very well-placed source who revealed to me the story behind that particular story.
He said that the chaps decided in the Blue Room that the Serious professional had some credibility with the fans on financial matters.
Consequently, his assertions on money matters were likely to be taken at face value.
My guy told me that by stating that next year would see the club in profit was getting ahead of the story as the year-end accounts were due out soon.
Based on what I’ve been told, I would be amazed if the reported losses were less than £25m.
My information as of today is that the current cash burn is around £3m per month.
Therefore, it was essential to get the story out there that the promised land of profitability is coming over the hill.
This fantasy will allow the Stenography Corps to accept that the year-end accounts just tells the sorry tale of Covid etc.
Meanwhile, in the real world, the Sevco High Command is still in charge of a loss-making business without a credit line from a bank.
I understand that they have once more been denied a lending facility from a major institution.
Moreover, they were told not to come back!
As I have stated here for many years, there are real stories to be unearthed at Ibrox.
However, the Stenography Corps know the rules.
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Given the disclosure in the Ibrox accounts that King received £832k interest on his loan there will be no shortage of money men desperate to provide loan facilities going forward.
With current interest rates almost zero anyone with money to spend will find the Ibrox interest rates too good to miss.
£23.5m confirmed losses.
Had to laugh reading a post from a Rangers fan claiming that the latest £23.5 million loss in the last financial year wasn’t as bad as some people were making out.
Wow, perhaps if he was one of the ‘investors’ emptying their pockets yet again to keep the show on the road, he might have a slightly different perspective?
The Ibrox Board gambled to stop ten and won. They are gambling again to get CL money. They are a point ahead with a game in hand so the gamble so far looking good. Celtic’s “Strategy” of not investing in the squad … we have sold 100m of talent since Dembele is making their gambles a viable Strategy. Focus on the Celtic Board this is where our problem is not at Ibrox.
I am certain that a few years ago a very senior Sevco figure ( I think it was Robertson) confirmed that their financial future would depend on European income.
I remember commenting at the time that that was a suicidal way to run a football club.
Sadly they’re still here.
There is another interesting wee caveat that could well play a hand in this and that is the current Housing Market issues in China (Evergrande ) could spell trouble for Investors who have vested interests in the Far East ?
I seem to recall there being talk of investment (£20m )from the Far East at Ibrox (Stuart Gibson).
Don’t know if that came to fruition but it was being talked about quite a bit at the time.
Non-transitory inflation kicking off.
Interest rates shooting up all over the world
Credit tightening
Magic money tree being chopped down
Customers bases will be feeling the pinch sooner than anyone thinks possible
Not a good decade to have been profligate, but of course no one could possible have seen economic decline setting in, could they Phil.
Actually the footballing (company) of a country, tend to using all ffp rules. Let the governing body if there candidate is acceptable…
Now which answer will arrive 1st.
“This time next year Rodney ….” luvvly jubbly
Phil, how do Sevco do within FFP of UEFA?? Are they able to compete next season?
UEFA FFP works on a 3-year cycle.
Losses can be discounted for the likes of stadium upgrades, spending on the academy etc.
Now if only they could bottle-up the hatred being belted out at each game or parade or demonstration and sell it for profit, the depts. would be wiped out instantly !
UEFA FFP works on a 3-year cycle.
Losses can be discounted for the likes of stadium upgrades, spending on the academy etc.
Yep it looks like £20m plus of a loss in the current financial year.Only an idiot would stick his chin out and claim that profitability in the next financial year was on the way.
Of course if they finally punt a couple of their star players then that claim may well come to pass. Of course Mr Gerard will be less than pleased at that course of action.
Or perhaps CL group stage qualification, after retaining the SPFL title this season, has already been built into the financial forecasts?
Over the next few months Motherwell, Aberdeen, Hearts, Hibs, Brondby and Lyon, all away from Ibrox stand, in the way of domestic and European success.
Meanwhile Ange and his squad are getting their act together. The defence is looking solid and goals a plenty are coming from all over the park.
Hearts and Dundee United may be closer to the Hoops going into the 2nd half of the season than a depleted Ibrox squad.
Joe
I think you hit the nail on the head with “Or perhaps CL group qualification…..”. Either they are gambling on winning the league in the knowledge that CL group qualification is the guaranteed prize. Or nods, winks and handshakes have reassured them this will be the case. A (5 way) secret agreement if you will. It seems to me that a guaranteed multi million pound prize is too tempting for a club/holding company in such a financial mess. Favours would need to be called in.
Unless they sell players, who no one seems willing to pay the asking price for, who can tell me any other way they can be financially profitable?
This season needs a forensic eye kept on the balance sheet of “honest mistakes”
JS
Penalties have already given them 6 points. Not counting the sending off against a hibs side who were ahead and cruising at that point in the match.
Given the continuing losses over in Govan is it not already the case that Rangers are playing fast and loose with UEFA’s Financial Fair Play rules?