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8 key Rangers annual report headlines as slim bank balance revealed despite record revenues

Rangers released their 2024 annual report today
-Credit: (Image: SNS Group)


Rangers have posted an eye-watering net loss of more than £17million in the past financial year - despite reporting record revenue and income figures

The Ibrox club today published their annual accounts for the year to June 2024 highlighting a total income of £94.2m alongside the record revenue of £88.3m. However, the lack of significant player sales and failure to qualify for the Champions League has contributed towards a net loss of £17.2m - up from £4.1m last year.

Despite offloading several high-earners during the summer, staff costs remain high at £61.2m, although this is down by £3m. Interim chairman John Gilligan admitted it's been a "challenging period" for the club amid a raft of changes on and off the park. Football Scotland has sifted through the 33-page annual report and picked out the eight key headlines and figures.

READ MORE: Rangers make £17m loss as John Gilligan admits 'challenging period' in annual report

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Pre-player losses

"A key target for the year was to significantly reduce the operating deficit pre-player transactions from last year’s £10.5million. Losses at this level, pre-player trading, is not a sustainable operating model for the football club. The results for the year under review saw that operating result reduce to a loss of under £2million, which reflects real and tangible progress on improving the core operating model of the club."

Net loss

"Despite this improvement in the pre-player trading loss, the club made a net loss of £17.2 million in the year. The player trading model is not yet where the business needs it to be with player amortisation and impairment of £13.6 million being significantly higher than player gains of £5.6 million. The £13.6 million includes £2.9 million of player impairments, ultimately a direct cost associated with the necessary summer 2024 transfer activity in order to rebalance the squad and the first team budget. The strategic goal is, at a minimum, to match the player amortisation cost with player gains over the strategic cycle. The investments made in the January and Summer 2024 transfer windows provide the Board with additional confidence on the future success of the player trading model."

Record core revenue

"The results for the year reflect a year of record revenue for the business at £88.3 million, up 5.4% on the previous year. The underlying revenue performance was driven by £44 million of ticketing and hospitality sales, together with £23 million of commercial revenues and £17 million of UEFA prize monies following our run to the last 16 of the UEFA Europa League. In addition, the club generated £4.8 million of other operating income, driven by revenue grants and a business interruption insurance recovery in relation to Covid-19. Finally the club generated a £1.1 million gain on sale in relation to the sale of part of the Albion Car Park. These two items are one-off in nature and non-recurring."

Record commercial revenue

"The commercial department’s activity has driven record revenue for the business in the year with £67 million being generated across the commercial and ticketing departments, which represents double digital growth on our prior year’s performance. A number of areas within the department delivered strong revenue performances with ticketing, hospitality, corporate sales, soccer academies, events, Rangers TV and retail all finishing with record revenue for the year. Our partnership with Castore, continues to go from strength to strength. We now have six dedicated retail stores across the United Kingdom, plus a dedicated retail website and app that serves supporters on a global basis. Our retail portfolio also continued to expand this year with the addition of new product licensees and the opening of the Rangers Museum Gift Store which sells heritage themed items that are inspired by the stories told in the museum. In addition, the club has recruited a vastly experienced Head of Retail & Licencing with Champions League and Premier League experience, which will allow us to build on the record revenue performance we have delivered and look to significantly improve the range of products available to fans and visitors. The opening of our new hospitality spaces, with the Gordon Ramsay Restaurant, and the Museum Hospitality experience, have been part of the huge achievement of driving hospitality revenues alone to over £10 million this year, which is £2 million higher than our previous record."

Costs of business

"Despite the significant revenue growth, the overall cost profile of the business remained steady despite an inflationary macro-environment, with costs increasing to £96.2 million, up 1% on the previous year. The board and the executive team will continue to ensure a strong focus on the operational cost profile of the club, ensuring that improvements in financial performance have a direct impact on the playing budget."

Investor loans

"Subsequent to the year end, the Directors have approved the conversion of £9.0 million existing debt into equity with the remaining loan balances being converted to a new long-term facility. As part of the refinancing, the club will draw down a further £4.0 million in debt funding. Additionally, our investors continue to be supportive and have agreed a funding plan to raise an additional £8.6 million of equity. Finally, finance costs of £4.0 million were incurred including an element of interest on shareholder loans that was classified as a capital contribution under applicable accounting rules. The club’s cashflows vary across the season and utilisation of shareholder loans remains a key lever to manage the position throughout the year."

Bank balance

"The RIFC Group maintains cash to fund the daily cash requirements of its business. As at 30 June 2024, there are loans with investors amounting to £22.1 million, other commercial loans of £2.7 million, whilst the Group also has lease agreements totalling £2.8 million. As at 30 June 2024, the Group held £1.7 million within cash and bank balances."

Free of litigation

"A bullet point summarising the key financial highlights on their website read: "Club free of any litigation claims for first time in over a decade following settlements." It was confirmed in August that the Ibrox club had settled their multi-million-pound dispute with the administrators of Elite Sports Group Ltd in a row over their Hummel kits. Lawyers for Elite alleged that Gers breached a contract by agreeing a separate deal with Castore in March 2020. The final settlement sum was not disclosed."