While it is not the first time that historically Rangers have asked and raised a share issue, it is the first time that there has been a particular condition attached to such an issue. Historically, of course, as we all know, Rangers have been on the Asset Match Private Exchange, whereby thousands and thousands of Rangers fans own a little piece of Ibrox themselves, on top of course of any potential bricks, but that is another issue.
Nevertheless, Rangers have historically issued shares frequently in a bid to raise funds for various purposes. However, this is the very first time under the new ownership that a Rangers share issue has been delivered. Of course, previously Rangers were on an active stock market being publicly owned. That is no longer the case under this ownership, who have gone to a limited company rather than public. AGMs are no longer categorically legally required, but the owners have said that they will still be taking place to an extent anyway. Ownership outright does deal different rules to public ownership, which is what we were previously.
A new condition attached
However, these new share issues have a very interesting condition attached. We are not entirely against the notion because FFP will become a problem if it is not issued. The share issue raised is deliberately asking fans to help contribute towards the signing of new players. The fans are actually being asked to dig into their own pockets to help fund new signings this summer. This is a bit of a departure from previous regimes. We do not have an issue with helping Rangers stay within FFP. It means that fans get to invest in the club and own a part of the club. Unfortunately, fans do not strictly get a say in the club. That legal obligation was gone as soon as it became majority ownership. When the takeover took over, that changed the rules a little bit.
Ownership and fan engagement
However, the owners, the 49ers and Andrew Cavanagh, are said to be willing to listen. They have said that they will listen to fans. Of course, there is active engagement with the fan advisory board and other bodies. So it is not like they have gone into hiding and do not care about what the fans think. Consequently, the notion of buying shares to help potentially sign new players is an intriguing idea. In theory, it has always been the case. Share issues have always been released and fans who bought into that would have indirectly been helping towards signing new players. However, rarely have club hierarchy announced it that way. Consequently, it is a very eye opening and interesting way to go, as seen in wider ownership debate.
The FFP reality
But as we say, there is only so much that the owners can actually do financially before falling foul of FFP. FFP is a big problem for Rangers. The owners have been doing their diligence and have spent big. However, there is a limit to how much they can spend before falling foul of UEFA and FIFA regulations regarding financial fair play. Ultimately, this means sanctions and not being able to play in Europe. Both of these things are crucial to avoid for Rangers. They are a vital source of income in themselves. As a company and as an organisation, Rangers always need to have revenue. Having sanctions against the club and not being able to play in Europe would be a big problem for revenue streams, something even external reports like this highlight.
Consequently, Ibrox Noise for once is not actually against Rangers share issue. We do not mind the idea of fans having the option to buy into the club to actually help towards avoiding FFP and helping to invest towards new players. It would be an active and legitimate revenue source for the club. Fans would directly get to contribute towards signing players. It helps the club stay away from FFP because at the moment the brand still is not quite bringing in enough cash for big spending on the club side to remain free of FFP rules. So it is an interesting angle and one that we are intrigued to see how it goes, especially with the official share offering now outlined.
And yes, Ibrox Noise invests in Rangers. Of course we do. Will we be taking part in this new share issue. Almost certainly, much like concerns raised in other fan reactions across the support, while broader coverage like this continues to track developments.