Rangers investment update drops after UEFA rules verdict at Ibrox
Stephen McGowan has suggested that Rangers may not benefit from external investment at Ibrox due to UEFA rules which would cap their ability to spend.
The Gers are on the lookout for a change at the top as John Gilligan goes in search of a new chairman after John Bennett stepped down in September.
There would be no guarantee that this change at the top and potential new investment would provide a boost with McGowan reporting in the Scottish Daily Mail on 22 October (page 70) that UEFA rules could halt any financial boost from coming in.
He said: “Due to UEFA’s stringent financial sustainability rules, even external investment wouldn’t necessarily be a silver bullet.
“The Graeme Souness solution of throwing £50million at the problem is neither viable nor realistic when spending on football operations is capped at 70 per cent of the club’s annual income.”
Rangers investment could suffer under UEFA rules
In June 2023, UEFA altered their financial rules which limited the availability to spend on “player and coach wages, transfers and agent fees to 70 per cent of club revenue.” [UEFA.com]
This has been done in an attempt to create financial stability and create a positive relationship with cost control among member clubs.
This is a generally positive set of rules which has reduced the potential of solvency but it does have its drawbacks which can affect clubs.
Rangers could be one club affected negatively if they were to bring in any external investment into Ibrox.
With that being said, there is an opportunity to bring in additional revenue if a new chairman comes in with ideas that can make that possible.
Utilising the transfer market and making smart signings with sell-on value, like Celtic have been doing for many years, would be an ideal start to increase funds coming in.
Everyone has to play by these rules in Europe and the Light Blues just need to find their way around it if new investment comes in.
In other Rangers news, one pundit believes Philippe Clement is now faced with a defining clash to save his job.
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