Rangers Face Financial Pressure: UEFA Compliance Deadline Looms

Rangers have been cautioned by football finance expert Dan Plumley regarding their high player wage and amortisation costs, which are currently around 85% of the club’s revenue. This figure surfaced in the wake of Rangers’ recently reported operating loss of £17.2 million for the 2023 financial year. With UEFA planning to reduce the cap on football costs to 70% of revenue by the 2025-26 season, Rangers face a challenge to bring their finances in line.

Plumley, speaking to Ibrox News, emphasised the urgency of the situation: “One interesting takeaway relates to UEFA’s new financial regulations. Rangers’ current football costs—specifically player wages and amortisation—are at about 85% of revenue. UEFA’s target for this figure is 70% by the 2025-26 season, so some adjustments are needed to meet that requirement.”

Financial Warnings and the Path Forward for Rangers

The Europa League could bring Rangers up to £16.9 million this season, providing crucial financial support. However, the primary objective at Ibrox remains qualifying for the Champions League. Celtic’s strong recent performances have increased the pressure, especially with leadership gaps in the Rangers boardroom.

New manager Philippe Clement has the task of closing the gap in the Scottish Premiership, but without significant improvements, Rangers’ financial future may face further challenges. Meeting UEFA’s cost-control standards is critical, and failure to do so could have lasting impacts on the club’s finances and ambitions.