Rangers have sustained an increased loss of £17.2million despite attempts to reduce costs and usher in a player-trading model.
The figures, which were released to the London Stock Exchange, showed the club lost £4.1m more in the last financial year than in the previous 12 months, despite total income rising to a record £94.2m.
While revenue has increased, and wages overall have marginally come down to £61.2m, total operating expenses still sit at £110m.
The annual review also stated that Rangers had reduced an operating deficit of £10.5m to less than £2m.
The first-team wage bill has come down by £2.5m and is expected to reduce by a further £6m in the coming year.
Rangers have suffered an increased loss of £17.2million despite trying to reduce costs
Chief finance officer James Taylor predicts balance sheet will be stronger in future
Ibrox club were not helped by their failure to qualify for the Champions League
The club’s chief financial officer, James Taylor, predicted that the club’s balance sheet will look stronger once they rolls out their desired player-trading model.
‘I think the thing to highlight here is there was a £17m bottom line post-tax loss this year,’ said Taylor.
‘That number, whilst again is something we should acknowledge and observe, is something that we recognise and understand how we are going to move forward and fix.
‘A lot of that loss is coming down to the impact of the player-trading model and, this year, taking impairments on players from the recent past that we have moved on in the summer.
‘Again, one of the big talking points over the summer has been the normalisation of the first-team wage bill from the club’s perspective.
“That has allowed us to look at how are we are going to move forward in a sustainable manner and in a manner that allows us to get to a break even point pre-player trading. Which, again, is a stated objective.’
Taylor admitted, however, that the club’s failure to reap the financial benefits of the Champions League this season, coupled with the Ibrox building works fiasco, won’t help the picture in a year’s time.
Philippe Clement’s side had to play some home games at Hampden after a delay in the arrival of building materials halted improvements to the Copland Road stand.
‘It will be challenging this year given the nature of the Copland works, Hampden and indeed the Dynamo Kiev result,’ added Taylor.
‘That will be challenging but it is something we are focussed on and looking to achieve.
“For us as a football club we have to get to a point that we have an operating model that is sustainable and successful.
‘We then have the football side of the business that generates on the players’ sides, and that generates us gains over a five-year cycle.
‘If we deliver that, we can then start bolstering our balance sheet and accelerating investment and look at various different ways of further enhancing the opportunities of the capital available to the first team.’
Rangers also said they were ‘free of any litigation claims for the first time in over a decade’ after settling a legal dispute with Elite Sports Group Ltd, owners of kit brand Hummel, in August.
Interim chairman John Gilligan admits it has been a difficult year on and off the pitch
Problems with building work at Copland Road Stand had an adverse effect on the club
Interim chairman John Gilligan, who stepped into the role following the departure of John Bennett earlier this year, admitted it had been a difficult year for the club on and off the park.
In his remarks, he noted changes in the club’s hierarchy but said there was ‘a strong executive team’ in place to help move the club forward.
Gilligan also said that the club were continuing to look for ‘an outstanding candidate’ to take on the vacant chief executive role at Ibrox.
‘Undoubtedly, it has been a challenging period for the football club with significant change occurring both on and off the park throughout both season 2023-24 and over the summer months,’ he said.
‘As part of these changes, John Bennett stepped away from his role as chairman in order to focus on his health.
‘John remains a supportive shareholder and investor in the club and I’d like to place on record my thanks for his leadership both as chairman and a director over the past nine years. We look forward to welcoming (him) back to Ibrox.
‘We have had a number of changes in senior leadership positions with the CEO, James Bisgrove departing to join Al-Qadsiah in the Saudi Premier League and Creag Robertson recently departing as our director of football operations.
A delay in the arrival of building materials halted the work, and team decanted to Hampden
‘We wish both James and Creag all the best in their future careers and thank them for their efforts with the football club.’
On the ongoing search for Bisgrove’s successor, Gilligan added: ‘Whilst we continue our search for the outstanding candidate for the CEO position, we retain a strong executive team within the football club led by our chief financial officer James Taylor, chief commercial officer Karim Virani and our director of football recruitment Nils Koppen.
‘All three were recruited in the period under review, and, as you can see from our underlying performance, there have been significant steps made in a short period of time in delivering against our strategic objectives.
‘The challenges encountered with the redevelopment of the Copland Road stand have been well documented, and as a board we once again apologise to our supporters for the inconvenience caused by the delays in returning to our home.
‘The support received at Hampden was outstanding and epitomises the link that our great club has with our supporters.
‘I’d also like to once again place on record my thanks to the SFA, SPFL and UEFA for their understanding and support through this period.
‘With the Copland Road stand now complete, we are extremely proud of the work undertaken to upgrade and improve the facilities for our disabled supporters.
‘They truly are now some of the best facilities in Europe and are evidence of the board’s commitment to continue to modernise and improve Ibrox and the wider campus.’
