George Overhill

Tue 6 December 2022 12:10, UK

Rangers have satisfied auditors that they are capable of paying their bills on a day to day basis for the first time in a decade, Kenny Barclay said at the club’s AGM.

The record turnover of £86.8million that was highlighted a month ago led to an operating profit of £5.9million [Sky Sports, 6 November], boosted by the then-record club sale of Nathan Patterson to Everton last January and the run to the Europa League final.

That has put the club in a far healthier financial position than they were a year ago, when auditors had raised a “going concern warning” due to heavy losses over the six years since the Dave King regime ended, with yet more loans required to cover costs [The Herald, 14 November 2021].

The tumultuous recent history at Rangers had meant yearly reports contained such warnings throughout the past decade as the club climbed out of oblivion, but Barclay made clear at the AGM on Tuesday morning (6 December) that amid major boosts to incoming finances last season that is now not the case.

The Ibrox finance director said, via the Daily Record: “Removal of ongoing concern clause in reports means for first time in 10 years auditors are comfortable with the clubs ability to pay its bills on a day to day basis and that represents massive progress.”

Relief

There is clearly a lot that the fanbase is not happy about with the club’s board in recent months, as signified by Club 1872 confirming a day before the AGM they intend to vote against Douglas Park remaining as chairman.

But there is certainly some good news on the economic front with the removal of this years-long concern about the ongoing sustainability of the club’s running.

It is a measure of the successes on the pitch in recent years that millions have been brought in by Premier League sides taking Patterson and Gerrard, as well as Giovanni van Bronckhorst’s Europa League run.

But with Calvin Bassey sold for a further record fee in the summer and Joe Aribo fetching a solid fee as well, plus qualification to the Champions League, there are still questions over what has been done with the cash more recently.

While those on the inside will obviously wish to point to the less eye-catching matters of satisfying creditors and securing the club’s model, which it can’t be argued are very important, the money to do that is only forthcoming when the team is performing.

The lack of success in the transfer market in terms of incomings since the 55th title win has seen Rangers throw away a position of strength, as shown by the major downturn in form this season.

It has necessitated a major expense in sacking Van Bronckhorst and his staff before securing Michael Beale and his own, so while there are pleasing financial returns in recent months there remains a feeling that some benefits have been wasted.

A significant upturn in performances is desperately needed under the new regime, and the squad currently lack anyone capable of continuing the vital player trading model, so the lack of a going concern clause is a positive but the situation comes with caveats.

In other Rangers news, now one of the club’s top assets has already asked to be sold.