Rangers chairman David Somers has warned that a season ticket stand-off by fans could risk the club’s ability to ‘continue as a going concern’. The club released interim financial results for the last six months of 2013 on Thurrsday, with the headline figure a £3.5million pre-tax loss. The figures were comparatively better than those relating to the same period in 2012 and showed that revenue had risen by 38 per cent to £13.2m. But they also revealed the club had just £3.5m left in the bank as of December 31 – a drastic reduction on the £21.2m from the previous year-end. The financial crisis at Rangers has seen Dave King mount a plan to pay season-ticket money into a trust fund to be released only when the fanbase is satisfied the club is being run properly. Such a proposal has been backed by The Union of Fans – the umbrella group for several disaffected supporters. But on Thursday, in a prepared statement, Somers admitted: ‘It remains a significant concern that external comment and ill-informed opinion continues to create uncertainty with regard to future income and cash flows. ‘In particular, recent public comments suggesting season ticket holders divert payment away from the Club has caused a level of uncertainty over the timing of season ticket cash flowing into the Club, which, as with many other football clubs, is Rangers’ primary source of income. ‘If this were to happen there would be a negative impact on short-term cash balances and it is possible that the Club may need to seek alternative additional short-term financing. ‘This clearly would not be in the best interests of Rangers and would likely have a significant impact on our ability to progress the development of the Club in the planned manner. ‘This possibility results in the existence of a material uncertainty which may cast doubt about Rangers’ ability to continue as a going concern and therefore that the Company may be unable to realise its assets and discharge its liabilities in the normal course of business.’ The board’s perceived squandering of money on, among other things, excessive executive pay and bonuses has put a section of the Rangers support on a war footing. They have found a figurehead in King who this week implored the board to release fresh share capital in return for a seat of power – and vowed to underwrite as much of the £50m he believes is required to again challenge Celtic. On Thursday night King urged the board to reveal how they plan to halt the club’s alarming cash burn. ‘I won’t even read the interim results,’ he told Sportsmail. ‘To me, that’s the history of the club and we have to look at the future now. ‘The board spoke about the results when I met them in Glasgow. I said to them: “I don’t care about the results. All I know is that right now you have no money. I don’t care how you wasted it.” ‘Quite frankly I don’t give a damn about the interim results. What I want to know is how - given they have no money and initially borrowed from Laxey on a distressed basis - they plan to tackle the fact the club is in trouble. ‘Where is their ambition for the future? If they can show me and show the world what their ambition is for the club and how they plan to fund it then that’s great.’ King has suggested the Union of Fans alliance pool their season-ticket money and place it in a supporters’ trust unless the board provides assurances over the future. Following a meeting with the Rangers board in Glasgow, however, the Johannesburg-based businessman will now wait to see how chief executive Graham Wallace plans to fund a challenge to Celtic before making his next move. ‘I hope a supporters trust fund doesn’t happen,’ King added. ‘But, be in no doubt, it will bring the club to its knees again. Could I support that? Only after I see the business review. Right now I very much want to avoid that.’ Interestingly, Somers went on to drop a broad hint that the board are poised to give some ground and strike a peace deal. He said: ‘The Club commenced a detailed business review during the period and this is nearing completion. ‘The review will outline a clear strategic focus and vision for the future development of the Club, on and off the field, and the actions needed to deliver upon the vision. ‘In addition, we have indicated previously that the Club will require additional investment to support our future plans. The outcome of the business review will allow the Board to assess the likely level of future investment and how best to structure this.’ On Thursday night the Union of Fans issued a statement questioning why chief executive Wallace had told December’s AGM there was enough cash in the bank to see the club through the season. The Rangers board were recently criticised for the rates of a £1.5m credit facility from Laxey Partners and director Sandy Easdale – although they have now agreed more favourable terms with wealthy supporter George Letham. ‘The most important issue, and one which highlights the obvious need for substantial investment, surrounds the cash position of the club both at this present moment and at the AGM last December,’ their statement read. ‘The CEO, Graham Wallace, stated at the AGM that there was “sufficient cash in the business to fund the ongoing needs of the club in the near term”. ‘It appears from both these interim results and the recent loan of £1.5m from shareholders that this statement at the AGM may have been somewhat misleading. It is unclear exactly how it could have been stated by the board at that time, with any confidence, that there was sufficient cash even for the short term and we would like Mr Wallace and Mr Somers to explain this as a matter of urgency.’
Posted on: Thu, 27 Mar 2014 23:45:17 +0000
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