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Review of Rangers' Half-Year Accounts

Frankie

By Frankie
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Frankie

Frankie 8,562

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Submitted by BlueDell

 

The club made a �£2.3 million profit in the first 6 months to 31st December 2007. Sounds good, particularly compared to the loss of �£1.5 million for the same period in the previous year, but is it really?

 

During the last 2 years we have made losses of �£5m and �£6m during the second halves of the year. The extended run in the UEFA Cup may be negated by the increased costs, so we probably make a loss of a similar amount this year. A loss of �£5m added to a profit of profit of �£2.7m means that we would have been looking at a loss for the year of over �£2m (being very conservative), and thatâ��s AFTER we have qualified for the Champions League (CL).

 

What kind of loss would we be looking at had we not qualified for the CL? Given that turnover increased by �£10m due to the CL then we could have been looking at a loss of well over �£10m for the year.

 

The figures show why it was vital for the Chairman to have the Hutton deal go through. This will take us into profit for the year, and will avoid the potentially embarrassing position of making a loss despite qualifying for the CL.

 

The profit of �£2.3m was lower than the �£4m that I had expected due apparently to a higher than expected increase in salary costs, due to more players and it would seem that some of the new players may be on relatively high salaries.

 

Our debt has increased but this is not surprising given the fact that our season ticket money mostly comes in before the end of June and the purchase of Cousin, Cuellar, Whittaker, McCulloch and Naismith will all have had a negative effect. Again the Hutton cash and perhaps some of the CL money still to come the position will be improved at the year-end, but it�s too difficult to speculate where we will be by then given the limited information available.

 

So, overall, we are still reliant on both the CL and selling players to keep our head above water. Not a particularly reassuring place to be from a financial perspective.

 

How do our results compare to Celtic�s? Firstly their half-yearly accounts give a lot more details than our due to their stock market requirements. Rangers are quoted on the PLUS Markets Exchange which requires only a limited disclosure with no balance sheet and only a very limited profit and loss account supplied. It is therefore difficult to any sort of meaningful analysis of our accounts.

 

Celtic made a profit of �£10m but if you strip out the �£4m profit that they made on the sale of players (I believe that we had very little in this area in comparison as the Hutton transfer will be shown in the second half of the year) then they made a profit of �£6m compared to our �£2.3m I believe that the 3 main reasons for the difference are their bigger capacity, our bigger write-off of players due to our purchases and that they have had one more game domestically than us.

 

I believe their profit made on the sale of players was from the likes of Miller and Beattie, and goes to show how important it is for our Chairman and CEO to maximise return from the sale of our players, something that we appear to be guilty of not doing.

 

Their bigger capacity may have added over �£2m to their profit for the 6 months and is something that we are going to have to live with unless steps are taken to increase the capacity of Ibrox.

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Frankie

Frankie 8,562

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The thing with the Traynor issue is that he and Murray fell out a couple of years ago.

 

Perhaps Jabba has weaselled his way back into the good books but I'd certainly like to know what this moonbeam is before I renew my season book... ;)

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