Rangers fans have lauded the club’s board of directors after financial details were released in the annual report on Friday night [Rangers.co.uk].
The impact of the global health crisis has made this an unprecedentedly difficult year for businesses around the globe and the Gers are no exception.
The club made an operating loss of £15.9 million for the financial year up to June, which was an increase of £4.3m on last year’s losses.
It’s forecasted that the club will require a further £8.8m in funding by the end of the current season and £23.2m in total by the end of the 2021/22 campaign.
However, revenue increased by close to £6m, due, in part, to the club’s excellent Europa League performances, while chairman Douglas Park confirmed that he and John Bennett (director) will continue to provide substantial loans to cover shortcomings.
In his lengthy report, Park took the opportunity to praise the Rangers fans for their unwavering support during tough times.
“This is a club which has experienced some of the darkest days that any football club can endure,” said Park [Rangers.co.uk]. “This is a club which has repeatedly displayed remarkable resilience in the face of adversity and which will do so yet again.”
“Amidst the current economic storm, the Rangers support has again stood tall. I am never more proud than when I see Rangers raise the bar. To once more sell-out season tickets and corporate hospitality is quite astonishing, particularly when it was largely accepted that many games could be played behind closed doors.”
“COVID-19 has brought with it the severest of strains to all of our business and personal lives. As we can see from the plight of a number of clubs throughout Europe, football is facing some very serious challenges. Indeed, playing matches behind closed doors is likely to adversely impact the club by in excess of £10m in the current season. Yet I am confident in your Board and our employees to face these challenges with the backing of our magnificent loyal supporters.”
In response, supporters have praised Park and co. for their willingness to effectively guarantee the club’s future by covering shortfalls.
There’s an acceptance that such substantial annual losses aren’t sustainable in the long run, but with the squad now packed full of valuable players and results improving on the pitch, there’s a sense that the club is on the right path in the short-term.
Here’s a selection of reactions from Twitter:
So it appears Dave King's shift of carrying the most weight has ended and Park & bennet are now the heavy lifters. Avoiding sycophancy, we are incredibly lucky to have them and the other investors. History should be very kind to them.
— Ahcumfaegovan (@bobmcphail) November 20, 2020
Losses like that aren’t sustainable long-term obviously. I think this’ll be the last summer without a big player sale, but that was clearly the strategy Dave King always said we’d follow. We built a squad full of assets, which is remarkable when you think of the 17/18 squad.
— Heart & Hand Podcast (@ibroxrocks) November 20, 2020
Extremely lucky to have a board of directors prepared to put us in this position by absorbing the losses needed to propel such ambition
Clearly they are comfortable doing that and given assurances further of that
That commitment, in these times, is outstanding
— Four Lads Had a Dream (@4ladshadadream) November 20, 2020
The board knew they had to go all in this season, but fortunately we have the assets to offset losses next year, win the league or not.
The second champions league spot is massive. Qualification + a Morelos sale makes us 15-20M in the black.
A gamble but an exciting one.
— Callum (@Mackenzito94) November 20, 2020
They could have simply accepted the Morelos bid and we would have broke even. Got to respect that the board are willing to cover that loses in order to achieve success on the park. Also that account for last seasons Europa league run or the season before?
— Feetabix (@JRW1872) November 20, 2020
We have value from the millions to the tens of millions in every position (and the ‘back up’ for that position) in every position barring GK and reserve right back. We’re in a good place. It’s not sustainable but it was never designed to be. The rebuilt EH will make money also.
— @deecee1872 (@deecee1872) November 20, 2020
£11 million in the bank. Quality Players on long term contracts are assets, Douglas Park & John Bennett to cover shortfalls. An operating loss was to be expected this year given we are in a global pandemic and playing behind closed doors. Douglas Parks summary is excellent.
— Alan (@AT72ranger) November 20, 2020
These guys should be lauded. No matter how much money anyone has it is huge ask & commitment they have shown. Always annoyed me the grief board got, yes they got things wrong but these guys never claimed to be experts in this field but their commitment & intention is unmatched
— James Campbell (@jwc498) November 20, 2020
We should be so thankful to this board and the guys that work at Rangers now for building a proper club that’s clearly needed proper investment. Never had more faith in Rangers and Rangers people than I do right now.
— Lee Gray (@LeeGrayRFC7) November 21, 2020
Heroes. Every single one of them.
— Barrie (@twowordsbaz) November 20, 2020
We are very thankful 🇬🇧💙
— Billy Watt (@billygoodwood) November 20, 2020