Football
PA Sport 8y

Rangers need external funds after posting £7.5m annual losses

#INSERT type:image caption:Rangers chairman Dave King said the year had been 'a difficult one.' END#

Rangers expect to need up to £2.5 million of external funding before the end of the season after posting annual losses of £7.5m.

The Rangers board said the first tranche of money would be needed next month, but have vowed that there will be no shortfall.

The annual deficit, for the year to June 30, is a slight improvement on the previous campaign when the club lost £8.1m, but turnover fell by just over £1m to £16.5m despite promotion to the Scottish Championship.

The annual report stated: "The forecast identifies that the group will require up to £2.5m by way of debt or equity funding by the end of season 2015-2016 in order to meet its liabilities as they fall due.

"Further funding will be required during the 2016-17 season, the quantum of which is dependent on future football performance and promotion to the SPFL Premiership.

"The forecast indicates that an initial tranche of funds will be required in December 2015.

"The board of directors has received undertakings from certain shareholders that they will provide financial support to the group and have satisfied themselves as to the validity of these undertakings and that the individuals have the means and authority to provide such funding as and when it is required."

Rangers have £8.75m of loans outstanding -- £5m from Sports Direct, £2.25m from the Three Bears group of shareholders and the rest owed to chairman Dave King.

King, who took control in March, said: "The year under review was a difficult one, both on and off the field. It was another year of turmoil for the company and the club.

"Match attendances and season ticket sales were at a particularly low level. The fan boycott contributed to this and, while the boycott was controversial, it did contribute significantly to the removal of the previous board.

"The low revenue from poor ticket sales was compounded by the ongoing unwillingness of supporters to spend the historical levels of money on the club's retail activities."

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