Finance Expert reacts as Rangers compensation goes past £5million
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 Rangers have paid out a significant amount of money this week by replacing Giovanni van Bronckhorst with Michael Beale.
The Finance Expert admitted that the £6million paid out in total with the two moves will have been compared to the £25million banked alone from the Champions League.
Falling out of line on the pitch and crashing behind the likes of Celtic can hurt the revenue and income that can see that figure drop significantly if action is not taken.
“It does seem like a lot of money,” he exclusively told Ibrox News.
“You get these industry benchmarks with compensation fees reported, you see these kinds of figures and they’re always in the £5-10million ballpark.
“It is a significant sum of money, but spin that the other way, and look at the money that Rangers have generated from the Europa League run, look at the money from Champions League qualification.
“If you start to fall off the pace of that, that can hurt the revenue line, this year they are going to bank up to £25million from the Champions League, so the risk and reward of sacking a manager and paying off their compensation is if you think a new manager can refresh the team and get you back into that, the pay off outweighs what you got from the said competition.
“I think it’s in line with previous figures that we’ve seen for manager compensation fees at that level, it’s not an insignificant amount of money but in the long term, you’re talking about that revenue line for performance on the pitch and they have dropped off.
“They are probably looking at that and thinking it’s run its course and that money will cost us now, but with greater potential in the future.”
In other Rangers news, this finance expert admits the Bears have numerous options on the table to generate more investment when needed