The reality behind Dave King & Rangers investment


This site has quite deliberately avoided all political discussion ever since the truly feel-good factor returned to Ibrox in the shape of Mark Warburton and his legendary assistant Sir Davie of Weir.

It could be argued March’s deposing of the loathed previous board at the decisive EGM was where it started, but the truly inspirational stuff came on the pitch as Warburton’s squad presented a quality of football rarely before seen from a Rangers side.

Consequently focusing on this has been thoroughly enjoyable; talking about football again.

However, a number of recent political and financial issues have most certainly arisen and it would be folly to completely ignore them – and the one which I will cover here is the notion of Dave King and investment.

Indeed, the board and investment.

King’s critics, and I was once most definitely one, would argue the man has not invested the promised millions. He stated at the post-EGM press conference that £20M would be invested, made up of £10M from himself and he believed the other board members would stump up the rest between them.

Hence the lack of any obvious press release with neon lights flashing over it that Dave King has invested capital has been seized upon by his detractors as proof the man has not a penny and is a liar and swindler.

However, one thing no one actually accounted for was that King did not put any kind of time scale on the promised investment; he did not say that the next day after election he would dip in his pocket and throw £10M at the company.

He just stated the sum he intended to put in.

However, and here is the real problem Dave King and indeed anyone investing in Rangers right now still has; despite the feel-good factor being back, despite season tickets being colossally higher than last year and despite the near-certainty that Rangers will be promoted, financially not much has really changed in terms of revenue generated.

The company posted losses of £7.5M, a reduction of only £600,000 on last year. Rangers remain a complete black hole of investment, something this blog has been preaching for the past three years, and that until natural turnover went up, thanks to increased TV money back in the SPL, potential (massive) monies from European qualification and prize money in the SPL (rewards which dwarf the lower leagues) to name but three, anyone who invests in Rangers at the moment is sadly in the same position they were this time last year – it is money into a bin and there is no return.

Many might argue that King and the others should, as good Rangers men, invest that cash and accept they will not get it back – well, unfortunately, that utopian world is not the real one. Sensible businessmen do not invest in failing businesses – the best they will do is loans to ensure working capital to keep the business afloat.

Honestly? If I had millions of pounds I would not throw it into Rangers right now – I love the Club with all my heart, but beyond a loan, I would see no point in investing to plug holes in the knowledge I was never to see that cash again.

People make a huge deal of the fact King lost £20M first time around, but it is presented as a negative – that the man should not have lost his cash. Yet paradoxically he is expected, along with the others, to invest cash he knows will go down the drain?

This is why he and the rest engage in loans or very minor investment of no more than around £1.5M.

This entry is not meant as a staunch defence of King, nor a staunch criticism of anyone, just a reality that we are not in a world where people are happy to lose millions in businesses which do not profit.

If King had put in his full £10M Rangers would be currently £3M in profit – but he personally would have just lost £7M.

Not even Robert Sarver (remember him) with his outstanding business acumen was willing to do that, hence the incredibly modest takeover offer.

It may be a year or two before Rangers fans finally see big cash going into the Club and tangible results from it.


  1. While I agree in principle with the article, please remember the osses are for the year ending June 30th. Since then a lot of overpaid players have left. I hope that although the new team are much better, they are costing us a lot less. Add to this the increase in season tickets and this year (to Jun 2016) should see a loss more like 2 Million. Win the league and move into the Premier league and increased ticket prices, a few more fans and a good bit more sponsorship should see us break even despite higher wages.

  2. this years accounts release only show 2 actual months of the new board being in place so its quite obvious that the figures wont show a difference from last year yet… stating "despite the feel-good factor being back, despite season tickets being colossally higher than last year and despite the near-certainty that Rangers will be promoted, financially not much has really changed in terms of revenue generated.

    The company posted losses of £7.5M, a reduction of only £600,000 on last year. Rangers remain a complete black hole of investment," basicly means that you do not realise this years improved situation wont be reflected until in next years accounts…………

  3. At last, a sensible assessment of Mr King and his board's contribution to date. Investment will come but only after the bile recedes and the financial situation stabilises. I have complete faith in King and the board. The Rangers means as much to them as it does to the rest of us.

  4. This is getting to be a habit ,you have hit the nail on the head ,the board has not been in place a year yet and it will take more than that to fix the mess the last lot left ie sports direct contract ,Charles Green lawyers fees it goes on and on .These guys are not wealthy business men by being stupid with their money ,they have done enough to get us back to the premiership ,then they will release the purse strings a little more.

  5. The upcoming court case is another reason that there will be no substantial investment in Rangers.With the uncertainty relating to any possible revelations as a result of the case who would invest.I am confident that Dave king and the other like minded investors will get us through this difficult time.

  6. For the first time ed I don't agree with much you have said, can't see King investing any of his money into club, for one he won't be able to move any out of South Africa. Thought Robert Sarver was going to invest 25 million for a 51% stake in the club? Dave King got 15% for a paltry 1.5 million and he had to borrow that money.

  7. you only need look at whats being done behind the scenes at the club to see that things are moving in the right direction for the club going forward lets not kid our selfs here we are still work in progress its time we as supporters see the longer aim for the club weve had no negative press regarding the clubs finances since king and co took over king is backing the supporters stance against ashley but cant actively state that due to court restrictions hes not actively stating we need to buy the merchandise from sports direct i for one am looking forward to the next few seasons ahead id like us to strenghen our links with spurs and arsenal too its obvious they are happy with the way we are using the loanees we have in january id like to see a central defender , a holding midfielder and a strike bought in id also send nicky clark out on loan

  8. Another well written account of where Rangers are at at this financial moment in time. I would also like to comment on the current board and congratulate them for having the insight to bring the quality of the fantastic Mark Warburton and David Weir. Together they have transformed this new attacking and brilliant to watch Rangers team from the worst Rangers team in history under the mismanagement of the disastrous manager ability of Ally McCoist. The management team are also building the whole training, fitness & scouting system that can save us a lot of money in the long term by bringing in tried & tested people who have perviously worked with MW before.

  9. dont buy from the fat mans shops we need him out our club now,, the newcastle fans need to do the same if they want there club to do alot better the club is just a piggy bank for the fat bastard,,wake up newcastle fans FAST,,

  10. The board are going in the right direction. Backroom being built too. They are doing enough to get promotion. Will do enough to get in top 6 next year then challenge the next. They are looking at Rangers future not a year down the road !

  11. First investment should be to tie down W and W on long term contracts.Secondly get a Terry Hurlock type player (remember him?) to stop other teams playing through our midfield as easily as they do,Hibs and St Johnstone spring to mind not just because we lost but their ease at going through our midfield was there for all to see.Agreed no drastic investment required meantime but SPL football will be a big step up.
    My progress report reads 9/10.
    P.s.I think some of Kings statements have been a bit erratic and best consulted with our P.R department before being released!
    Onwards and upwards!

  12. Well said. You don't invest big money just for the sake of doing it. With the cloud of litigation and everything else still to be confronted any type of major investment would be foolish. As far as Dave Kings detractors go, the man is worth half a billion pounds. Of course this is not all liquid money, but the notion that he's penniless is one that is nothing short of laughable, bordering on wishful thinking (for certain fans, of a certain team). We're closer to all the darkness surrounding the club being resolved, but we're not there yet. I am not a big time businessman, but it doesn't take a genius to understand what's going on here. At this point there is nothing to invest in considering the uncertainties surrounding the business side of the club. And here's a bigger secret that's not really a secret for anyone paying attention; King and the other members of the board will not be putting anything of substance into the club as long as Mike Ashley has his fat little fingers in the pie. It is obvious that they want him pushed as far out of the process as they can get him before they even think about any kind of major investment.

  13. I posted last night about this very subject and was slaughtered but let me say again King is the only RANGERS man willing to take control of the club with its best interests a heart and take the club forward…… the artical says the money will come but these guys will no when the times right and we should all just enjoy the football being played and trust the board, this is not going to happin over night out club was broken big time but at least it is slowly being built back up!!!!! PS How much is the press in this country keeping this EBT shit going (scarey) it's trying to drive the feel good factor at Ibrox away but fuck them all we are on the up…….WATP

  14. all the good signs team feelgood factor management backroom staff ground full of loyal fans
    all this has happend because of dave king and the board 4 months ago this club was on its knees
    lets have faith in dave king you have to build from the bottom up massive turn around inthis short
    time remmber FOLLOW FOLLOW

  15. The club is running smoothly. Warbs is an intelligent man and has publicly praised the board for signing every player they have asked for!!,, We are still in the first division, therefore spending has to be a minimum, but with maximum return, to which we are seeing. The legal case against Whyte, Green and the other ruffians, could very much have a significant impact on our club finances and gaining some cash back from them through the proceeds of crime act,,, we still have the stock market to rely on for income, but all investments will be needed and implemented when we return to the top league when we will need the cash to buy the far superior quality of player that will take on Celic and Europe. Be patient, I have faith in the current set up and given time,,,,,,, we will prevail,,

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