Rangers F.C annual report year ending June 2024
The highest loss in Scotland, resulting in cost cutting through a reduction in wages and transfer spend for 24/25
RANGERS ANNUAL RESULTS FOR YEAR ENDED JUNE 2024
The positive trends from Rangers most recent accounts include:
Revenue up from £83.7m to £88.3m (Celtic = £124m)
Total staff costs down from £64m to £61.2m (Celtic = £65.6m)
First team wages down from from £42.6m to £40.6m
However, it was overall a poor financial year for the club which has resulted in subsequent wage cuts (at least £6m since these accounts were posted) and a reduced transfer spend - nothing spent in January. The key negative trends include:
Profit on player sales of £5.6m, down from £23.6m
Operating expenses of £96.2m
Loss of -£17.1m, up from -£4.1m (Celtic = profit of +£17.8m)
European income £17.3m, down from £18.5m (that's less for winning Europa League group & reaching last 16 than for getting 0 points in Champions League)
Since the year end, the investors have converted a further £9m of debt into equity and taken another £4m in debt funding. The club clearly heavily relies on investor funding to cover heavy losses. Interesting to note that a mere months after these accounts, the investment arm of the San Francisco 49ers have been locked in negotiations with the current directors with a view to taking a 51% stake in the club. This will be an expensive takeover, not only due to the amount of shares to acquire half the club (250m shares at a cost of between £50m and £100m) but also any director selling up would want his debt repaid in full.
On the UEFA income, Rangers will likely receive less again this year 24/25 (mainly due to not reaching UCL playoff round & so don't receive the €4.29m elimination payment), at the time of writing they are through to the last 16 vs Jose Mourinho’s Fenerbahçe and have earned a little over £15m so far.
Budget wise, if Scotland's Coefficient doesn't finish inside the top 15 in any of the upcoming seasons - this is likely to happen - then 2nd place the following season will play three Conference League qualifiers. Conference, not Champions.
Were the team in 2nd to lose any of these 3 ties then they would be out of Europe in August. There will need to be a realistic budgeting for the possible outcome of no £15-20m income from European football in future seasons.
These will be worrying accounts for Rangers fans, which signaled an upcoming decrease on spending on player signings and a continual decrease in player wages.
CELTIC VS RANGERS - A COMPARISON
Both have seen steady increases in revenue in recent years, primarily driven by European competition. Celtic have stretched their earnings gap over Rangers since they were earning about the same in 21/22. It's no surprise that in the three seasons Celtic reached the Champions League = over £100m in income. It will be the same again in next years accounts, as they again qualified for the competition where all the money is - and earned a whopping £38m before their knockout round elimination to Bayern Munich.
What do fans want to see income spent on? New players. Both have done this and can spend in one summer what everyone else in the country might not spend in 10 years.
Note that the dashed line figures for 24/25 can increase in January, the figures I've included were this summer's spends noted in both club's respective accounts: