Rangers fans have hit out after the Ibrox club announced an operating loss of £14.4million in its annual accounts.
The club’s audited accounts showed they had generated revenue of £19.1million over a 13-month period, the vast majority from gate receipts, and spent £17.9million on staff costs..
Former chief executive Charles Green, who left the club in April, received the highest amount, £933,000, on top of the money he will make on the sale of his shares.
Rangers International Football Club plc, which raised £22million from a share issue last December, had £11.2million in the bank at the end of June, about £4.5million of which was from sales of 2013-14 season tickets.
The club, who gave notice of their annual general meeting on October 24, insisted expenditure was falling and that the results showed they were on the way to financial stability but many fans remain concerned about the spending.
Andy Kerr, president of the Rangers Supporters Assembly, said: “We have transacted a huge amount of money in a 13-month period and there will always be concerns about how appropriately they have used that money.
“The £11million is probably less now and it’s clear that expenditure is ahead of our income.
“Income doesn’t come quickly given that season ticket money is in and advertising and sponsorship deals are in place.
“It was noted recently that we were losing £1million a month so 11 months from June just takes you to the end of the season.”
The accounts, for a 13-month period, show a total of £7.8million was spent on paying the players that won the Third Division title meaning the majority of wage costs were to non-playing staff.
Green, who stepped down in April following allegations over links with oldco Rangers owner Craig Whyte, which he denied, received wages of £333,000, a severance payment of almost £220,000 and a bonus of £360,000.
Other highly-paid employees included manager Ally McCoist, who received £825,000. McCoist revealed on Friday that he had agreed a pay cut.
Finance director Brian Stockbridge received more than £400,000, about half of which was a bonus, while former commercial director Imran Ahmad, who has launched legal action against the club over a bonus row, received £300,000.
Kerr said: “It’s interesting to compare the figures to the past - even in the halcyon days, I’m sure directors’ remuneration never reached that amount.
“Charles Green’s bonus payment was higher than his salary and he got a severance payment on top of that.
“There were suggestions beforehand that some inside Ibrox were filling their boots and there is some evidence that that was true.”
A breakdown of the figures showed that the club’s biggest income stream by far was gate receipts and hospitality (£13.2million).
Other major sources of revenue included sponsorship and advertising (£819,000), retail (£1.6million), broadcasting rights (£778,000) and commercial revenues of almost £1million.
The club revealed they had £4.2million of non-recurring expenses, most of it from the repayment of oldco Rangers’ football debts totalling £2.7million, as agreed when the club’s Scottish Football Association membership was transferred.
The rest of this total was made up of investigation expenses relating to the internal probe into Green’s alleged links with Whyte, acquisition expenses totalling £600,000 each and share issue costs of £300,000.
Rangers also revealed they had spent £600,000 fighting Whyte’s legal claim against the club as part of an overall legal bill of £2million.
Stockbridge, who formed part of the consortium who embarked on the £5.5million purchase of the liquidation-bound club’s assets and business, claimed Rangers had turned the corner to reach financial stability.
Stockbridge noted the club had spent £1.8million on stadium wifi and big screens which he predicted would generate additional revenue, and £2.5million on buying Edmiston House and Albion car park, which are intended to bring in future profit.
He added in his business report: “Inherited contracts from pre-administration included termination payments of £1.7m for expensive players and their agents, which would have cost the club £2.5m for the current season had we not acted when we did.
“However, as has been made clear, these are all exceptional cash costs which will not be repeated and so going forward we can look to costs continuing to narrow and sponsorship developing.”
Stockbridge added: “Whilst an operating loss of £14m was made on a turnover of £19.1m in the period, it will not be repeated this season. Turnover in retail this season is expected to be much higher than the £1.6m received.
“Operational costs are now significantly lower than they were at the start of the period and additional revenue streams are being generated.”