Rangers financial results released

Scottish Rangers, which did not attain second place in the SPL, announced it had a GBP 1.5 million loss for the second half of last year, compared to a profit of over GBP 6 million that the club made a year ago.

The figures indicate how profitable the Champions League can be if the club achieves a runner up spot and making it to the qualifying rounds of the Champions League is the reward.

Rangers is currently four points ahead of Aberdeen but the spot the fans are interested in is between the Rangers and Scottish Celtic with Celtic 19 points ahead of its rival.

The club's latest results show a loss of GBP 1.475 million, compared to a profit of GBP 6.1 million for the six months ending 31 December 2005.

That is when Rangers became the first Scottish club to qualify for the knockout stages of the Champions League, but was beaten in the last 16 by Spanish Villareal. In Alex McLeish's last season in charge, the club failed to qualify for the contest when it finished third in the league.

Although the club had a run for the UEFA Cup, it did not prove to be nearly as lucrative as the Champions League campaign. The club's turnover has fallen from GBP 29 million to GBP 23 million, with the most recent figures showing Rangers' current net debt at GBP 5.9 million. This figure was a great improvement on the GBP 23.1 million debt posted in 2005 with the biggest single factor being the initial GBP 18 million payment received from JJB Sports for its ten-year contract. Under the terms of the deal, Rangers is guaranteed a minimum annual royalty payment of GBP 3 million each year of the licence.

"The current period excludes the beneficial impact of Champions League football reflected in 2005, but includes the guaranteed net royalty payments receivable from JJB following the licence agreement struck in June 2006," said Sir David Murray in his chairman's statement.

"Season-ticket sales, sponsorship, media and hospitality income all showed growth on the prior year."

Murray mentioned the club's "disappointing" form at home, which led to a change in the management team. Paul Le Guen and his assistant, Yves Colleu, will leave the club and will be replaced by Walter Smith, Ally McCoist and first-team coach, Kenny McDowall.

"The combined change in management team and introduction of new players brings renewed confidence," Murray said.

"I firmly believe that the fortunes of the club will therefore improve, and look forward to further progress in the UEFA Cup and securing Champions League qualification for next year."

Another impact to the club's finances is the decision last month to award the first regional casino licence to Manchester. Rangers had secured planning permission to build the complex next to its stadium, Ibrox, but lost out to Manchester.

"I, together with our partner Las Vegas Sands, was disappointed to note the Government's decision . . . in awarding the first regional casino licence to Manchester," said Murray.

"A regional casino would have acted as a catalyst for the regeneration of the Govan area and provided additional employment and economic benefit to not only Glasgow but to the Scottish economy as a whole.

"We await clarification on future proposals from the Government, but in the interim will endeavour to work with Glasgow City Council to continue to look at initiatives to regenerate the area surrounding the stadium."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.