whatever
14-09-2004, 11:05
Rangers have, as expected, announced an increase in their debt to £72m.
The club lost £5.9m in the 12 months to 30 June 2004, compared to a £29.6m loss the previous year.
David Murray, who has just returned as chairman, recently announced a share issue worth £57m and says he intends to wipe out the entire debt within a year.
"The reduction of the historic debt eliminates negative media attention (and) removes the significant interest burden," said Murray.
The chairman insisted the club was moving in the right direction financially.
"It was however apparent that a solution would eventually be required to resolve the club's historic debt position and the board had been considering options for restructuring our finances for some time," he added.
"At the same time, I have consistently confirmed my willingness to play a leading part in whatever type of long-term financial solution was deemed to be appropriate."
Murray has previously stressed that Rangers would no longer be "net-spenders" and that the days of paying £12m for players were gone.
On Tuesday, he underlined that the emphasis on financial prudence would continue, but indicated that more money could be made available for players.
"Although the fundraising will not alter our basis business strategy, which is to maintain a balanced approach to on and off-field activity, it will enable us to re-invest operational cash flow which would otherwise have gone to service the debt," added Murray.
"Our past ambition was financed by large capital investment and the promise of media revenues that did not materialise.
"We must now operate within our budgetary constraints. We will however always endeavour to field the best possible team operating within our available financial resources."
The club lost £5.9m in the 12 months to 30 June 2004, compared to a £29.6m loss the previous year.
David Murray, who has just returned as chairman, recently announced a share issue worth £57m and says he intends to wipe out the entire debt within a year.
"The reduction of the historic debt eliminates negative media attention (and) removes the significant interest burden," said Murray.
The chairman insisted the club was moving in the right direction financially.
"It was however apparent that a solution would eventually be required to resolve the club's historic debt position and the board had been considering options for restructuring our finances for some time," he added.
"At the same time, I have consistently confirmed my willingness to play a leading part in whatever type of long-term financial solution was deemed to be appropriate."
Murray has previously stressed that Rangers would no longer be "net-spenders" and that the days of paying £12m for players were gone.
On Tuesday, he underlined that the emphasis on financial prudence would continue, but indicated that more money could be made available for players.
"Although the fundraising will not alter our basis business strategy, which is to maintain a balanced approach to on and off-field activity, it will enable us to re-invest operational cash flow which would otherwise have gone to service the debt," added Murray.
"Our past ambition was financed by large capital investment and the promise of media revenues that did not materialise.
"We must now operate within our budgetary constraints. We will however always endeavour to field the best possible team operating within our available financial resources."