Rangers Football Club made a net loss of £17.2m last season, despite implementing the first part of cuts in the first-team squad.
The club delivered record revenue of £88.3m, but total costs remained steady and a player trading loss of £8m contributed to the overall figures.
The annual review stated that Rangers had made progress in reducing an operating deficit from £10.5m to less than £2m.
“Realignment of costs has been made across the business, but particularly in the first-team squad cost, which reduced by £2.5m, this is anticipated to reduce by a further £6m in the coming year since the summer 2024 transfer activity,“ read the statement.
“A strategic review of the player trading model was undertaken after [director of football recruitment] Nils Koppen joined the club.
“Together with the manager, and with the support of the board, there has been a focus on reducing the age profile of the squad, ensuring the first team wage budget is commensurate with our business model and delivering enhanced squad value through acquisition of top-rated young talent.
“Delivering on the player trading model is critical to the future success of the club.”
Costs associated with transfers and the value of the squad were listed at £13.6m with player gains at £5.6m and the club stated that their minimum target is to balance transfer business.
“The investments made in the January and summer 2024 transfer windows provide the board with additional confidence on the future success of the player trading model,” the review added.
The report stated that the board had, during the financial year, approved the conversion of £9m debt into equity with remaining loan balances being moved into a new long-term facility. Finance costs of £4m were incurred during the 12-month period.
The report added: “As part of the refinancing, the club will draw down a further £4m in debt funding.
“Additionally, our investors continue to be supportive and have agreed a funding plan to raise an additional £8.6m of equity.”
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