Rangers chairman Alan Johnston has admitted that the SPL club could go bust. Half-yearly figures indicate that the club owes £29m, up by £3.5m, most of it to Lloyds Bank. However, Johnston is confident that the annual accounts in June will show a drop in debts to £22m.
Rangers chairman Alan Johnston has admitted that the SPL club could go bust. Half-yearly figures indicate that the club owes £29m, up by £3.5m, most of it to Lloyds Bank. However, Johnston is confident that the annual accounts in June will show a drop in debts to £22m.
The half-yearly figures showed a drop in pre-tax profit from £13m to £9m. Turnover decreased by £4.1m to £33.7m. There as a 4.9 per cent decline in the number of season tickets sold and also a fall in sponsorship income.
Much hinges on a decision by Revenue and Customs on offshore payments made to players. The club is vigorously contesting the Revenue treatment of a trust arrangement and state that they have received reassuring opinions from taxation specialists. The club’s finances have also been hit by a separate charge relating to a player compensation scheme between 1999 and 2003.
Talks with Craig Whyte on taking over ownership of the club from Sir David Murray appear to have been at the eleventh hour for some time now. It was reported earlier this week that Lloyds Bank wanted a £1m exit charge. For their part the club want reassurances that Whyte will provide the funds that he has said he will.