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The financial results for the season that end in June 2009 have been published. They show very clearly why the banks are so nervous about the financial future of the club. Below is a brief overview of these results.

The headlines will be made by the debts, which now stand at over £31m, and the loss for the year which is at £12m. Both of these figures are very worrying.

The club has been overspending for at least the eleven seasons we have records for. The combined losses for that period come to £145m, or roughly £13m a season. Clearly that is unsustainable. The only way Rangers have survived the madness is by shareholders (mainly Murray) pouring ever more money in.

This year the Murray money has dried up, and reality has arrived. The banks are not to blame for what has happened, Rangers Football club are. The 2009 results show that the club spent £11m on players when they knew there was no European football to justify it. The situation is commented on in the club accounts seemingly without anyone realising the implications at the time.

The debts and losses are an issue, the amount of cash the club has is the problem which is causing the banks so much concern. Banks will (generally) lend you money if they believe they are going to get the money back. While Rangers had cash in the bank, and more coming in things were okay. 2009 proved a turning point. During the season the club used up £10m more in cash that it had coming in. It will be very difficult for the club to convince banks to lend them ever more money when they have consistently produced such bad financial results.

The accounts include the line "The effect of the economic downturn will result in the Board imposing greater financial disciplines in moving forward to ensure the long term sustainability of the Club. The income generated from the 2009/10 Champions League participation, together with the downsizing of the playing squad should assist in lowering our financial exposure despite the loss in income from the SPL broadcasting rights." Which looks like a way of saying things are tough, that long term sustainability was a concern, and we're going to have to continue to tighten our belt.

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Last updated on 13th November 2009