Rangers Report £17.2m Net Loss Despite Record Revenue, Declare End to Litigation Claims

Rangers have announced they are “free of any litigation claims for first time in over a decade” as they recorded a net loss of £17.2m for the year to June. This loss marks an increase from £4.1m in the preceding year, occurring despite the Scottish Premiership club reporting what they state are record revenue and income figures. In August, the Ibrox club resolved a dispute with the administrators of sportswear brand Elite Sports Group Ltd, which originated from an issue concerning their Hummel brand kits. Rangers’ annual accounts highlight “record core revenue of £88.3m, record total Income of £94.2m” and “record commercial revenue of £67m – double digit growth.” Chief finance officer James Taylor characterized this as “a stunning performance.” However, despite successfully limiting cost increases “to just 1%”, the club still incurred a pre-player trading loss of £2m, though this was a reduction from £10.5m in 2022-23. The £17.2m loss was posted even after implementing the initial phase of reductions to the first-team squad, with an £8m player trading loss contributing to the overall financial results. The annual report states, “Realignment of costs has been made across the business, but particularly in the first-team squad cost, which reduced by £2.5m.” It further adds, “This is anticipated to reduce by a further £6m in the coming year since the summer 2024 transfer activity.” Rangers have indicated that a strategic review of the player trading model, initiated after director of football recruitment Nils Koppen joined the club, has led to “a focus on reducing the age profile of the squad.” Costs related to transfers and the squad’s valuation were listed at £13.6m, with player gains recorded at £5.6m. The club’s stated minimum objective is to achieve a balanced transfer business. The review indicates, “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.” Nonetheless, net borrowing has increased from £16.5m to £28.4m, following Rangers’ agreement of an additional £8.6m funding package with current investors. Interim chairman John Gilligan informed the club website that “Undoubtedly, it has been a challenging period for the football club with significant change occurring both on and off the park throughout both season 2023-24 and over the summer months.” He noted that John Bennett had stepped down from his role as chairman “in order to focus on his health” but “remains a supportive shareholder and investor.” Other key personnel changes included James Bisgrove’s resignation as chief executive to join Al-Qadsiah in the Saudi Premier League, and Creag Robertson’s departure as director of football operations. Gilligan stated, “Whilst we continue our search for the outstanding candidate for the CEO position, we retain a strong executive team within the football club.” He continued, “As you can see from our underlying performance, there have been significant steps made in a short period of time in delivering against our strategic objectives.” Gilligan once again apologized to fans for the delay in completing work on the Copland Road Stand, which necessitated the relocation of four games to the national stadium at Hampden Park. He concluded by saying, “The support received at Hampden was outstanding and epitomises the link that our great club has with our supporters.”