When Steven Gerrard said Rangers “haven’t spent a penny” in the last two transfer windows there were some eyebrows raised.
It was seen as a message to the Ibrox board as he looks to improve his squad and build on last season’s title success.
But after the club published its annual accounts the picture over why the didn’t splash out in the transfer window became that bit clearer.
And any hopes of the “big money” Gerrard claimed will need to be spent to compete with the best certainly looks unlikely in January.
That is after a £23.5million loss for the year was announced as the pursuit of that historic and much-coveted 55th league title was laid bare.
Emotionally, it was the title the fans desperately wanted. And financially it was one those in charge were wiling to go all out to ensure they got.
The memories for the fans will live forever but they must now trust the current board to ensure they don’t pay too heavy a price for it.
Here, Record Sport Online takes a look at some of the key points following the club releasing the annual accounts.
Champions League cheque imperative
This season’s title was always going to be massive with automatic entry to next season’s Champions League group stage for the first time in 12 years for the Scottish Premiership winners.
But it has now taken on extra significance in the eyes of the Rangers fans after the club’s financial position was laid bare with the accounts.
Missing out on the group stage this season was a huge blow after suffering that defeat to Malmo in the qualifiers – before which opposition boss Jon Dahl Tomasson claimed they needed the cash.
But a £40m windfall next season would more than wipe out the losses announced and the board must be desperate to get the league flag in the bag for that reason alone.
And that could have been behind the decision not to cash in on any prize assets during the summer as they opted to speculate to accumulate.
Sitting with a four-point lead it is paying off just now but that could quickly change and it puts huge pressure on Gerrard and his side.
Gerrard’s first team squad makes up 70 per cent of staff costs – £33.5m of the total £47m – which is a significant outlay for domestic success.
The Ibrox boss might be forced to work with what he has as January signings appear unlikely given the figures.
Walter Smith faced a similar situation when he admitted the bank was effectively running the club back in October 2009.
At that time, they hadn’t paid a transfer fee for a player since Maurice Edu 12 months earlier and that situation remained as they battled the crippling financial issues.
Smith accepted he had to deal with the situation, galvanised the squad and continued to win trophies and it will be a test of Gerrard’s management skills to see if he can do the same.
Cash is King
There have been calls for a statue of Dave King after his efforts to save the club from the clutches of the despised former regime.
But it was the blue pound rather than a bronze sculpture that was of more immediate importance for the South Africa-based businessman.
King was still due to be repaid a £5m loan and he admitted at last year’s AGM that he expected his cheque by October this year.
And sure enough, the club’s annual report confirm he has been paid – plus a whopping £832,000 interest.
Speaking last year, King said: “It was a two-year loan and it is within the club’s current cash requirements to repay that loan so I would expect it to be repaid on time. There is interest on that loan.”
Loan Rangers to come bearing gifts at Christmas?
A cheque for Christmas is always welcome and one will be welcomed from those wealthy benefactors with cash needed before the end of the year.
The report states that “During the year, the group received £20.96m (net of repayments) from directors, existing shareholders and other parties. This entire amount was made available for working capital purposes.”
And they will have to rely on the generosity of those wealthy fans again, continuing: “At the time of preparation, the forecast identified that the group would require £7.5m by way of debt or equity funding by the end of season 2021/22 in order to meet its liabilities as they fall due with further funding of £0.4m required by the end of season 2022/23. The first tranche of funding is required from investors before the end of December 2021.
“However, the final amount required is dependent on future football performance, European football participation and player trading amongst other factors.”
Covid impact but short changed by sponsorship deals?
It’s impossible to ignore the pandemic factor and it is the same for every football club throughout the world.
Yes, season tickets were sold in record numbers but £17m was lost in hospitality revenue alone which is huge.
However, supporters might ask if they are getting value for their many sponsorship partners – almost 9000!
The club’s commercial and marketing director, James Bisgrove, has had plenty of praise heaped on him for agreeing deals.
There is hardly a day goes by when a new official partner isn’t announced yet it could be a case of quantity over quality.
Rangers raked in £4.7m from their various deals outside of the Castore kit deal which is around £4m a season and, while anything would be an improvement on the Sports Direct agreement, fans might be entitled to ask if they could do better.
Fan-tastic
The point has been made repeatedly over the past decade but where would Rangers be without the loyalty of the fans?
They have continually dug deep to bring they club back from the brink and, to be fair like so many football fans during the pandemic, stepped up to the plate when it was needed most.
Rangers raked in £17m from season ticket sales last season despite supporters not seeing a ball kicked.
That money was vital but on top of that they have subscribed in large numbers to the MyGers membership scheme at £40, produced record kit sales as well as purchasing the numerous other products from Castore and subscribing to the share offer which raised £4.5m.
