Rangers accounts have been released and they make for mixed reading with Philippe Clement the man having to bare the brunt of the cut-backs.
A £17.2m headline operating loss is a damning indictment of how things are being ran behind the scenes at Ibrox with a squad that has seen a lot of big earners leave to be replaced by younger, and cheaper alternatives.
The potential loss of European money won’t help Rangers given the importance it brings in terms of revenue, however, football finance expert, Adam Williams has told Rangers News that it isn’t all bad news.
Rangers accounts showing the early signs of recovery
Of the main talking points from Rangers accounts, the pre-player trading loss is heading in the right direction, Williams is optimistic for the future.:
“In terms of the wider health of the club, it’s concerning to see the operating loss spiral,” Williams said of the £17.2m overall loss.
“But with the wage bill set to fall substantially next year and with expected recalibration in other departments, I think that margin will narrow. With commercial growth, I think the pre-player trading loss will be eliminated.
“It’s interesting to see reports today that John Halstead could be about to provide a cash injection. That would cover costs, but Rangers have also got to be careful with rising interest.
“There is a note in the accounts about £4m in finance-related costs part of which came from interest on the loans that the club’s owners have provided. And they are planning to take on another £4m in debt funding on top of that?
“Don’t get me wrong, I think there are green shoots in the accounts and it’s good to see that Rangers recognise that costs need to come down in lieu of any big bang moment in terms of revenue.”
Player trading is the only way for Rangers to turn loss into profit
The improvements were never going to happen overnight, and it is exactly the same with the player trading model.
Rangers need more players to arrive for around the £1m mark and to be sold for three or four times this, it isn’t just about getting the sort of record fees that Calvin Bassey or Nathan Patterson made.
Take Fashion Sakala as the perfect example. Selling him was the right thing to do. The Zambia international made a decent impact in his two seasons after arriving on a Bosman and was then sold for £4m.
The problem was that he wasn’t replaced.
Players like Jefte, Connor Barron, Dujon Sterling and Neraysho Kasanwirjo already look like solid acquisitions and maximising their values should be central to seeing a loss being turned into a profit.
