Where Will the Money Come From?


The first thing new CEO Graham
Wallace did as part of his role at the head of Rangers’ new boardroom was to
peddle the line of a “120-day business review”. Essentially this was a
4-month internal focus on exactly where the money is coming from, where it is going,
how it is being managed, and what can be done to resolve the club’s financial
At the rate Rangers are bleeding
cash, the club cannot self-sustain long-term. No exact figures are available,
but gross estimates would wager a guess at anywhere between £200,000 and
£1,000,000 per month cash lost.
Now-departed Finance Director
Brian Stockbridge previously stated that, quite simply, the current cash in the
club’s coffers would ‘run out’ by April. Wallace announced the 120-day plan at
the AGM, on the 19th of December. That is well over a month ago which leaves,
if Stockbridge’s claim is correct, just over two months before the cash is gone
but a further month after that before the review is complete.
Either Stockbridge’s sums are
miles off, possibly leading to his departure, or there is a massive discrepancy
between Wallace’s plan and Stockbridge’s projections.
It is much easier to trust
Wallace, admittedly, in light of the fact he has thus far been true to his
promises. He did say there would be cuts at boardroom, and ‘was aware’ of how
‘certain members’ are/were viewed.
In other words, using savvy,
Wallace has caught on to who the paying customers dislike, AKA Stockbridge, and
parted company with him. Whether the fans are right or wrong to have blamed
Stockbridge for so much barely matters – his presence in the boardroom was a
source of ire among them and his removal has brought some harmony.
But this is academic because it
does not answer the big question; where will
the money come from? Whether Stockbridge is right or not with his
estimates, there will come a point when the cash does indeed run out, and there
is absolutely no sign of fresh investment from anywhere.
The Daily Express recently ran
this story about the Easdale Brothers intending to sell their McGills bus
business and use the proceeds to invest £20M into the club. Fans were mostly
sceptical of this as nothing more than a fairy story, and sadly my information
is they are correct as the Easdales have, non-publicly, denied it. I am not fully
clear on if the denial relates to selling their business or that they are
investing the received cash, but it does confirm either way they will not be
ploughing the cash the club needs any time soon.
So where does that leave the
club? The only other name linked to cash injections into the club is of course
Dave King, and after nearly a decade of hot air and press soundbites, not to
mention mixed messages, it is hard not to be equally sceptical of his
intentions. Yes, briefly it appeared Mather was grooming him for outright
ownership in light of the proposed appointment to chairman, but that died down
once Mather departed and King’s only reappearance has been self-important
comments in the press.
None of which have come to
Dave King can almost certainly
now be discounted.
Beyond him, nothing is left. With
the recent wage cut rejected, the players are not interested in helping either,
and there is no way to magic in more money.
Whatever Wallace, his new (as yet
unknown) Finance Director and financial consultant Philip Nash have in mind to
get the club out this financial pickle better be something pretty radical.


  1. In fairness to Wallace, he has at least taken the unpopular line that money must be saved. Mather seemed to sanction spending with no though to the longer term. Wallace stated at the AGM that the 14m loss for the 13 month accounting period included ~10m in one offs. So in fact the losses are more like 300,000-400,000 per month. Still way too much but a 15% across the board decrease in spending would see it right (assuming the numbers were correct).

    Where the bigger problem comes is financing Rangers push when back in the top flight. Investment will be needed to take on the combined challenge of Celtic/GCC/CO-OP.

    It is at this point that King's money may come in handy. He undoubtedly has the cash, but is he willing to spend it? I would hope Wallace keeps him onside in the meantime as there is no point burning bridges with one of the few Rangers supporters who have this sort of financial clout.

    King is correct to say that the best outcome for Rangers supporters is a second share offer. This will ensure that any money invested goes to the club's operations and not to existing shareholders. As a share holder and a supporter, I'm OK with losing out on the valuation of my investment at the IPO. I doubt Blue Pitch, Margarita, Easdales and Laxeys feel the same.

    • You will not lose out as a shareholder in RIFC
      The big investors are in this for the moneyThey invested on the basis of the asset value which wil revert to RIFC in the event of the club going into Admin
      So at the very worse you will get your share of the annual rent which the club will have to pay for the assets …in the form of a dividend

    • "Wallace stated at the AGM that the 14m loss for the 13 month accounting period included ~10m in one offs."

      He did state that but the accounts said there was 4.5m additional one off costs and the 14m was trading losses. I think Graeme may have spoken out of turn there or repeated something Brian told him

  2. You have said quote "Brian Stockbridge previously stated that, quite simply, the current cash in the club's coffers would 'run out' by April."
    He never said that at the rate the club was losing money, they would be down to their last £1m by April, with a further facility of £2.5m to be borrowed.

    Not defending him in any way, but putting that in as fact is misleading.

  3. "Wallace stated at the AGM that the 14m loss for the 13 month accounting period included ~10m in one offs. "

    This was a mis-quote picked up by a journalist – the accounts actually stated that the £14m loss excluded one-offs!

  4. King's money, real or not, is the only thing he has to offer. He could not pass a fit and proper test and even if he did I dont think he is the type we want associated with our club. I dont think he has any interest in putting in money without a place on the board. A share issue is the only other choice? So bleed the fans and hope domeone else comes along? This is not a plan it's a dream. I hope Wallace has a plan.

    • are you being serious?after what your club has done to mountains of creditors and the way your clubs fans want toshed the debt tells me that scruples are not a major issue at ibrox

  5. "It is much easier to trust Wallace, admittedly, in light of the fact he has thus far been true to his promises. He did say there would be cuts at boardroom, and 'was aware' of how 'certain members' are/were viewed".

    Just exactly what 'cuts' has Wallace made?

    His 'suggested' 15% pay cut for the playing staff has been turned down.

    Stockbridge's sacking has increased expenditure by paying up a years salary, and there is still uncertaintly over the famous 50% cut in McCoist's wages.

    Even if the players had accepted the wage cut it would have saved only a fraction of the the £14mill yearly deficit.

    There will have to be more serious belt tightening before the money runs out, and even then they may require a large cash injection.

    Tough times ahead.

  6. As a Rangers fan, I am like most, sick of the whole saga, we were liquidated end of, we start as a new club at the bottom we should have run like a new debt free club in the lower divisions, instead of still carrying on like a premier league side, paying high salaries etc. pig sick of the whole thing.

  7. A focus should be placed upon a mix of youth players and experienced ones such as McCullough, lyttle etc Bringing in SPFL players and expensive foreigners should eb a target in the next five years not now….. focus on Rangers acendency not trying to act like a Premier league club because by most accounts we wren't even near it…

  8. Seems like only the euro millions can save us. £49*m tonight would be a start. We need to form a proper fans group who will ask the right questions and demand answers. So called fans such as Chris Graham, Mark Dingwall, David Leggat etc etc have been filling us full of shit for years with the self serving aim of raising their own profiles and getting places on the board of the club. We need to wake up to the fact that these clowns are looking after their own interests, and not those of the fans. Stockbridge was sacked in order to pave the way for these chancers to ask us yet again for more money (season book renewals), and like before, they'll get it. Bomber Brown was right. We need to starve them out. We can do this by paying on a match to match basis until we are confident that positive change is happening, then review the matter. By paying the full amount up front, we are giving these spivs a free reign to do what they like whilst weakening our own position. I'm of the opinion that we bring the whole house of cards down and start again with a new board in place who will have the interests of the club at heart, even if that means a second liquidation. At present, we are just lambs to the slaughter. Time to make a stand. WATP who watched one club die. Dont be fooled twice!

  9. Get rid of you fat fuck of a manager who has pocketed more than Green,Whyte and Stockbridge combined . I million a year true legend. Lets not forget the million penny shares for £10k. £10k he diddnt pay out of his own pocket. Moaned about a transfer ban and now has a squad of over 50 players.

    Bomber was howling at the moon on the steps of the death star and he was ridiculed. He was right everything he said was right.

    He could do Allys job on a 10th of the budget he has already used and have a better team on the pitch.

    When you hit admin 2 Ally is squarely to blame and he will disappear and you lot will be sitting around looking biscuit ersed wondering why nobody warned you or how the SFA SPL could let it happen.

    up yees

  10. First time I have come across this blog. I must state that I am not a Rangers supporter or indeed any other club in particular, but I have been fascinated by the cataclysmic downfall.
    I must admit this is the first article I have read that leads me to believe that some Rangers people understand just how badly this club and its predecessor has been run.
    Unfortunately there are too many people who take the "A big boy done it and ran away" attitude. There needs to be an admission that the supporters and the media let this happen. There was no groundswell of opposition in the good times, even though the evidence of mis-management was out there. Who could forget Sir David Murray's £50m share issue, underwritten not by him as the media would have you believe, but by the Bank of Scotland – an appalling piece of business from a company that too went bust. At that time there was only triumphant hubris when the reality was that Rangers were living well beyond their means in one of the most corrupt environments seen in sport, and that is why so many probably revel in your misfortune.
    Anybody looking at this without the perspective of being Scottish would wonder why you didn't, and why you don't now, take control when you could have. Maybe you should start with that thought instead of looking for another dodgy sugar daddy. After all if it's too good to be true, it isn't true.

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