Rangers share injection could create more issues in Ibrox boardroom - Finance Expert
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 more voices at boardroom level could create more issues as new shares were snapped up by Stuart Gibson at Ibrox.
Football Insider reported on February 9 that Gibson had purchased £1million worth of additional shares to become the third largest shareholder in Govan.
The Finance Expert shared that after the Bears published over four million new shares in January, those becoming diluted could create more issues behind the scenes.
“Those really are the kind of front and centre pros and cons of it,” he exclusively told Ibrox News.
“So, we’ve seen Rangers do this quite a lot and it seems to be a model that they keep going back to, it is a way to generate money in the short term if you need it.
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“As we know, football clubs have to cover day-to-day operational costs, and there is that need to generate cash pretty quickly and this is a way to do it. It’s probably likely that is in play here, we’ve seen it in the past where they’ve wanted to raise £7million in three or four months, it gets them to the endpoint of the season, so it’s a model they have followed.
“The biggest downside to it from a football club point of view is the diluting of share options for everyone else, so that goes back to decision-making and the more people you have with relative stakes in the club, the more voices you have to consider.
“It does create an issue with diluting shares.”
Douglas Park and Rangers do not need any more issues right now behind the scenes, but this is certainly one to watch over the coming weeks and months at Ibrox.
In other Rangers news, the club are in line for a multi-million windfall from the Premier League after a £10m Auchenhowie milestone was reached.