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Our debt


Emerson
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Was asked why our debt remained at £31M after posting record profits recently. Couldnt give a straight answer. Why was it so? Was/is our debt a lot more than is being let on?

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It would not surprise me if the debt remained at 31mil, Muir was brought in by SDM to cut cost and turn Rangers around to a lean mean spend less machine. Why would he sanction some of the profits made to pay towards the debt? other than to make the club attractive to potential buyers. Muir's remit was to turn Rangers around by cutting costs, spending less which he has done and posted interim profits this season. The debt is being maintained within Rangers income, any new owners would be responsible for clearing the debt as part of any takeover, what is the need for Muir to sanctioned large payments towards it? Maybe at the end of the financial year if SDM in still in power and Rangers make a tidy profit he might ok Muir to pay an instalment towards it, that is if MIH does not take their share of any profit first?.

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Our debt gets serviced by £1million a year, but what a lot forget that debt keeps on growing with interest.

Think of it as having a credit card, then maxing it out. Then just paying the minimum amount each month to service it.

That's something like the situation, we find ourselves in.

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Our debt at 30 June 2010 will be less than £31m, but not that much less. My guess is somewhere north of £25m. As well as our £31m debt at 30 June 2009, we also owed for some of the players we bought in summer 2008. So some of our profit this year went to pay those 'trade creditors' rather than reducing our debt.

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My take on it is that we were £31m in debt to the bank but we also owed clubs money for players so strictly speaking we were £40m in debt. I dont know how the hell we got into so much debt if we hadnt payed the full amount for the players 2 years ago. I always assumed a large chunk of that £31m was from the £15m+ we spent after we went out to kaunus but it would appear not if we still owed other clubs £9m.

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