Finance Expert reacts as Rangers still owe investors as accounts released
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...
Dan Plumley has insisted that it is “normal practice” for Rangers to still owe their investors £78million after their latest accounts were published.
Chris Jack recently reported after the accounts that only £22million of £100million had been repaid currently with £100million taken from directors and shareholders over the past seven years.
The Finance Expert admitted that there will likely be terms agreed over repayments so the investors know what is actually happening with their money.
“I think it is normal practice,” he exclusively told Ibrox News.
“When you see it’s linked to the accounts, you know that £22million is what they’ve committed to that year and of course, there are lots of other things that happen at a club year-on-year that have to be balanced, so you’re always balancing that on and off-field performance.
“There could be several reasons for it, any money coming into the club will always be prioritised for on-pitch success where you can because that’s what the fans want and that’s where clubs are facing the real pressures.
“So, other factors then get pushed down the list a little bit, you would have terms to agree with investors and payments that you’ve got out, but also, you can’t see the detail but speculating slightly, the money owed that’s outside the £22million up to the £78million would have already have been negotiated and structured with those people in advance so they know what’s happening with that money.”
Thankfully, this is normal.
When you see such a huge figure, it can usually be daunting but with positive accounts already expected for next year too – the finances have never looked better at Ibrox.
Long may this continue, with the repayments going smoothly.