01 December 2014

UOF Statement re: Rangers' Retail Contracts

"Since the release of the accounts for RIFC PLC, the focus has rightly been on the almost immediate requirement for more cash simply to pay bills and also the board’s wish to raise £8m in equity finance despite recently turning down a valid, fully funded offer for £16m. However, having had the accounts analysed by qualified accountants, we feel it is important to bring Rangers fans’ attention to the absolutely disgraceful reality of the retail deal which has been entered into with Mike Ashley’s Sports Direct.

"We have become accustomed to David Somers’, Comical Ali style proclamations about our club. He stated recently that Rangers “make quite a lot of money” from the Sports Direct deal but that is not how the accounts read in our analysis. In fact, despite the loyalty of the Rangers fans seeing £7.6m spent on retail in the year covered by the accounts, the club’s share of that spending is a paltry £590k. That means that for every £10 spent by Rangers fans on merchandise, the club receives only around 75p. The accounts also reveal that Rangers Retail has an obligation to purchase stock at a higher price than it is able to be sold at.

"In the second half of the year covered by the accounts it appears that the portion of profit due to the club is an unbelievable £2k.

"For comparative purposes, the much maligned JJB agreement, our previous retail deal, made the club a minimum of £4.8m a year over the term of the deal, over 8x the amount we are making from Sports Direct.

"Crucially, it is also not clear whether the club has yet received a penny of the £590k it is due or whether it is still retained within Rangers Retail. Indeed, from inception it would appear that the club has only received £100k in dividends from the venture with Sports Direct. Mr Ashley has loaned money to strengthen his stranglehold over our commercial operations whilst funds due to the club through Rangers Retail, over which Sports Direct has effective control, are retained.

"We have always feared that the deal Charles Green did with Sports Direct was dreadful for Rangers. Mr Somers’ ridiculous defence of it, on behalf of this discredited and incompetent board, can be added to the list of reasons why he, the Easdale brothers, Norman Crighton and Derek Llambias are rightly distrusted by the vast majority of our fans.

"In light of the information revealed in the accounts we urge fans to stop buying merchandise from club stores, which are now under Mr Ashley’s full control or being shut down, and Sports Direct. Your loyalty is being abused and the club is not benefitting from the money you are pouring into Mr Ashley’s pockets."

2 comments:

  1. Why not just go back to supporting Celtic, we true Rangers fans don't need nor want you anywhere near our club.

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  2. What is puzzling, is why this deal isn't being investigated? It is clearly not in the clubs interest, and there are directorial obligations that have to be met by law, so surely a crime has been committed? AIM have an obligation to the shareholders of Rangers to see that nothing untoward is bring perpetrated. If people haven't woke up now to where we are at, then nothing will persuade them from their brainwashed state. If we want our club back, then we have to start fighting for it.

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Keep it civil, lads.