Rangers eye new savings measures after squad reject pay cut
Published 17/01/2014 | 10:11
Rangers say they are still examining new ways to cut costs after Ally McCoist's first-team squad rejected a proposed 15 per cent pay cut.
The cash-strapped Ibrox club reported a £14.4million loss in the 13 months up to July and chief executive Graham Wallace is now searching for new ways to balance the Ibrox books.
A Rangers spokesman said: "The manager and chief executive continue to examine ways as to how Rangers can live within their means."
The offer comes after Wallace admitted at the club's AGM last month the League One outfit's cost base was too high, "even for a top-flight club".
Boss Ally McCoist has already volunteered to accept a 50 per cent pay cut to help steady the flow of cash running out of Ibrox, while finance director Brian Stockbridge was also forced to hand back a £200,000 bonus awarded to him after the club lifted the Third Division title last year.
But even these concessions have done little to help improve the fallen Glasgow giants' balance sheet.
Wallace told the fiery shareholder meeting on December 19 that Rangers would require more investment if they were to compete with Celtic on their return to the Scottish Premiership, although he insisted there was no immediate threat of the £22million share-issue pot, which was raised a year ago, running out.
It was reported on Tuesday that McCoist had been told that he must make cuts to his playing budget, which currently stands at between £6million and £7million.
That news came on the same day that Guernsey-based hedge fund group Damille Investments Ltd confirmed it had purchased two million shares in the club from former investor Richard Hughes of Zeus Capital.
Rangers chief executive Graham Wallace claimed the proposed pay cuts were more of an "exploratory" discussion than a concrete offer.
And he insisted there was no immediate threat to the club's finances.
Wallace told the Daily Record: "All I am trying to do is look at options in order to move this club towards sustainability. That is my focus. This is not about a need for any immediate drastic action.
"Categorically, there is no threat of administration II.
"This simply sits alongside everything else that we are doing here right now - reviewing the business to put it on a sound footing for the future."