Dr Dan: Rangers losses significant but not alarming
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Rangers...
Despite making the highest losses in the Scottish Premiership, Rangers remain in a good financial situation.
That’s according to Dr Dan Plumley, who claims that even though their losses were nearly twice as much as Celtic’s, there are other things in their balance sheet that offset it.
Swiss Ramble reported recently that Gers’ £24.2 million post-tax loss was astronomically higher in comparison to Celtic whose £12.6million figure is the second-most.
Covid-19 hit the entire footballing economy hard, but Rangers suffered the most in terms of all the other Scottish teams.
Despite going on a run in Europe and winning their 55th league title, there balance sheet shows staggering losses.
However, it’s not all doom and gloom as Dr Dan, the Sheffield Hallam University expert, told Ibrox News, “I think we have to look at the bigger picture. We focus on the losses and that is a significant loss, but you have to factor in the other things going on at the club.
“On the flip side, their revenue has been increasing since their return to the Premiership.
“There’s also around £36million of equity in the club at the bottom of the balance sheet, so that’s a positive.
“There’s some deferred income which they will convert to revenue in the next accounts.
“The long-term liabilities are also lower in comparison to the other clubs, which is around £17million.
“They had to raise around £7.5million through the AGM and they did so that’s done and dusted now.“
Gers will be attempting to get the additional revenues from Champions League qualification next season.
Should they retain the league and/or win the Europa League, they will be among the continent’s elite next season.
In other Rangers news, Michael Stewart has taken a swipe at the club despite their big win v Hearts