Finance Expert: Elite Sports could look to squeeze as much money out of Rangers as they can
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 Elite Sports could look to squeeze as much out of Rangers as possible after court documents were lodged already.
The Finance Expert admitted that the £9.5million being demanded feels high compared to the accounts that have come out of Ibrox in recent years.
Administrators are now running Elite Sports after the brand crashed in recent weeks, although that may not stop court action and in turn, the payout that may follow.
“It’s really tricky,” he exclusively told Ibrox News.
“You never get a breakdown, you get commercial revenue, which is probably where this sponsorship sits, but you never get a breakdown of individual deals.
“If you look at Rangers’ commercial income over the last three years, they’ve just released 2022 figures, that was £17.2million, the highest it’s ever been, the year before that was £9.3million, and the year before that was £7million, so if you look at that trend there, let’s ignore the higher figure as it’s due to their latest success, around that time it was around £7-9million income and the shirt deal will be a part of that.
“You’re then trying to work out if that feels right for how much Elite Sports think they’ve lost from that. To me, it seems on the high side, if that figure is around £6-7million, that sounds better but I’m speculating slightly. There will probably be other things in there so not just loss of sales but brand exposure, the fallout and the PR.
“Gut feeling suggests that’s high but if you’re the company and you know the club is good for it, you will probably try to squeeze as much out of it as possible as you want some compensation for it.”
The last thing the board and Douglas Park need right now is more negative press and another payout to potentially follow another legal suit from the Sydney Cup.
Elite Sports and their case appear to be on hold for now, but if it does go through and they try to squeeze every last penny they can, it would not be a welcomed expenditure.
In other Rangers news, this finance expert admits the Bears have numerous options on the table to generate more investment when needed