Dr Dan: Rangers creditors losing £90m despite eight-figure payments to lawyers
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...
Rangers will see their creditors suffer significant financial losses, which could be to the tune of £90million.
That’s according to Dr Dan Plumley who claims that their losses are superseding their revenues.
Despite paying fees in the region of £25million to get out of the financial collapse over the last decade, the creditors have been the ones hurt the most.
According to the Scottish Herald, there currently is only £5million left to distribute to the thousands who lost money as a result of the club’s financial implosion.
This, according to Dr Dan, is a huge problem for Gers in their quest to attain self-sustainability.
Speaking to Ibrox News, the Sheffield Hallam University expert, said:
“Even in the lower leagues, you would expect them to win more games than not.
“They still managed to attract a good level of players to get out of those divisions.
“At the moment, they’re generating revenues of £50-60million, but you’ve got creditors losing £90million.
“It doesn’t take a genius to work out that there’s a problem there in terms of income and expenses.
“You’ve got creditors, people who are really relying on that money, losing out yet you’ve got £25million paid to lawyers and accountants to sort that mess out.”
Former owner Craig Whyte paid a token £1 to purchase the club from Sir David Murray in May 2011 while promising to wipe out their £18million debt.
Legal firms that are acting for the liquidators have received £13.6m, while the liquidators’ bill stands at £6.13million by December.
In other Rangers news, the Gers beat a European club to seal a major signing.