Rangers have issued 14m shares at 25p per share raising £3.5m in new funding for the club as part of a fresh Ibrox share issue.
The news comes after the club posted loses of £23.5m in the last financial year in a figures which have been consistently poured over by voices in the press.
Rangers issue 14 million shares for 25pence each pic.twitter.com/vknTYl2vie
— Price Of Football (@KieranMaguire) November 26, 2021
Kieran Maguire took to his Price of Football Twitter account to unveil the funding with Rangers set to bring in £3.5m for the shares.
The club’s £23.5m loss is a £7.5m increase on the season previously and comes amid the complications of the Covid-19 pandemic [Rangers].
Rangers also noted that they had secured the £7.5m in funding to cover the shortfall for the rest of the season.
Naturally, the report has been sensationalised by rival supporters and some in the press but there is an insistence from within Ibrox that the club is on course to turn a profit within the next year.
Rangers raise £3.5m from fresh Ibrox share issue
Maguire – who is widely recognised as one of the most respected and knowledgeable voices on football finance – has previously discussed the situation at Ibrox.
Far from play up to indulgent Doomsday scenarios like plenty of voices in Scottish football, Maguire has offered sensible clarity regarding the results.
The Price of Football founder also claims that ETIBDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) profitability is “achievable” by 2022.
“These results have been driven by Covid,” said Maguire [the Herald].
“Whilst their takings from gate receipts and hospitality are down, they still took in £18m.
“Manchester United’s gate receipts for the whole year were £700,000. So Rangers have done well there. It was still the biggest source of income for the club.
“It will be different story in their next results. I am expecting a significant rebound. It depends on the degree of progress the club makes in the Europa League, but the match day income should return to broadly similar to where it was in 2020.
“I think it is achievable objective for 2022.
“If you look at their EDITBA loss and add the thick end of £20m from match day revenue you can see it is achievable.
“They have been in a recovery phase for a few years, which is why the board have been putting so much money.
“Now, having won the Premiership and made an imprint in Europe, they have reasonable control of costs and should now be moving towards a sustainable model.
“And they have got players they can sell. Compare the Rangers model to that of Celtic. Celtic normally sell a player or two every season and bring in an eight-figure amount.
“Rangers now have the talent to sell. They have players who are coveted elsewhere. When they start to sell it will have a significant impact on their financial results.”
Meanwhile, an imminent Rangers arrival has been spotted in Scotland as the club prepare to secure an impressive deal.