The new owners won’t be able to spend big this summer due to FFP rules
21:01, 06 May 2025Updated 21:21, 06 May 2025
(Image: PA)
Rangers’ hopes of making significant investment in the summer transfer market could be severely restricted by financial fair play rules.
US owner Andrew Cavenagh and his consortium, which includes the San Francisco 49ers, are closing in on their Ibrox takeover.
The group has put a significant deal, believed to be around £50million, together and are looking to finalise the purchase of a majority 51 per cent shareholding in the Ibrox club.
They would put up additional funds for signings, strengthening the club’s infrastructure and for several key appointments.
Cavenagh and his advisors are currently looking at ways they can bring investment into the club, a new manager and strengthening the playing squad.
A possible new sponsorship with Red Bull, who sponsor Leeds United and are part-owned by the 49ers, has already been mooted and would help boost finances.
UEFA Fair Play rules, however, restrict new owners from simply pouring money into a club.
They take into account the club’s value, their assets and their debt.
Some of the Ibrox debt has been transferred into shares equity by directors but that also still comes into the equation.
Rangers made a loss of more than £17million for the year that ended Jun 30, 2024.
Another major drawback for Rangers is they have generated very little through player sales and on several occasions they have actually paid to get players off the books or continued to contribute to their wages elsewhere.
They have also had to pay off several managers, including Philippe Clement who was sacked in March.
The income from season ticket sales will be massive for the club.
Rangers will need to try and generate more income and revenues and possible Champions League or European qualification could also help.
A lot of the season ticket money has already been accounted for. A deal is in place to sign Oscar Cortes on loan from RC Lens with an obligation to buy.
Rangers have also agreed to pre-contract Lyall Cameron from Dundee and that will also require a six figure fee, via a tribunal or if the clubs can agree a fee.
On top of that, Rangers also have to pay a number of instalments on other historic transfer fees, like Mohamed Diomande, Robin Propper and Danilo.
Rangers will also have instalments from past sales on their own.
The club has also added to their wage bill by bringing in sporting director Kevin Thelwell, who is due to arrive from Everton at the end of the season.
The Ibrox side also need to bring in a new management team and head of academy, which is set to be Gareth Prosser from Everton.
The new consortium will put money in but they will need to be more prudent in the transfer market and look at free transfers and cheaper deals, which in the long-term can strengthen the team and also kick-start their player trading model again.
The new owners also want to invest in Ibrox Stadium and the training ground although that doesn’t come under the Fair Play regulations.