Rangers have announced their financial results and income is up 12 per cent overall in the second season in the Scottish Premiership but is very dependent upon matchday, although Ibrox seems full every game, reports Kieran Maguire of the Price of Football.
Rangers matchday income was up to £23m but still £20m behind Celtic last season. Maguire expects to see that gap significantly fall this year as Celtic didn't qualify for the Champions League and Rangers in group stage of Europa League which generates about £1m per match.
Rangers made pre tax losses of £275,000 a week last season, and even if one strips out interest and one off costs still losing £190,000 a week.
Rangers had to borrow to fund the losses made last season, and this has seen net debt rise to £21 million., Since the year end the club has raised further £12.6m, although nearly all of this was lenders converting their debt to shares and only £1.5m cash was raised.
Being a top club in Scotland fails to generate the income of lesser clubs in England. Rangers broadcast income was £3.7m, compares to £100-160m in EPL and about £7m in the EFL Championship. The total spent by Scottish clubs on their squads (mostly by Rangers and Celtic) comes to £68.1 million, about the same as Liverpool spent on their goalkeeper.
Whilst Rangers income is at its highest for many years, it is still nearly £70m less than Celtic. Over last six years the difference between the two clubs was £292 million with Rangers in lower leagues for much of that period. Maguire expects the gap to narrow significantly in 2018/19 if they have a good Europa Cup run.
Rangers wages were up 37 per cent last season and are likely to rise again this year, but Celtic are still paying £2.50 in wages for every £1 paid at Ibrox.
The idea of an 'Atlantic League' for smaller European countries is being discussed again and this could represent the best way forward for the top clubs in Scotland.
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