Dave King has addressed the current financial challenges at Rangers after ‘severe developments’ within the business environment caused by the global pandemic, as quoted by Glasgow Live.
The 64-year-old has relinquished his role as Chairman after five years in the post, with the club releasing a statement on Friday night announcing Douglas Park as his initial replacement [Rangers.co.uk].
The plan for the South Africa based businessman to leave his role was announced way back in November at the club’s AGM, and while the current health crisis almost saw him change his mind, he has stepped aside with a task team in place to deal with the repercussions of the pandemic.
“At my final board meeting in Glasgow on March 14 the board was close to finalising a new round of funding however this has been put on hold while the board considers the financial consequences of the rapidly evolving global impact of coronavirus,” said King, as quoted by Glasgow Live.
“The subsequent severe developments within the sporting and general business environment- that have now resulted in global lockdowns- has necessitated that the careful financial planning assumptions presented on March 14 are revisited.”
“In that regard, we are no different from other football clubs and, indeed, the largest and smallest companies worldwide are all affected to varying degrees.”
Verdict
While other Scottish clubs such as Hearts and Aberdeen have been vocal about their pending financial struggles amid the health crisis, this is the first admission from Rangers that the fallout will have a big impact on the club.
Should the current season be unable to be completed, the Gers will miss out on gate receipts and potentially the final round of prize money from the SPFL, amongst other things.
However, while King’s parting words suggest a rethink is required in terms of funding amid these unprecedented times, nothing here implies there’s any need for Bears to panic.
They will be hoping that Interim Chairman, Douglas Park, and the newly-created task force, will be able to sail the club safely through these choppy waters.
