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Scottish Premiership Side Rangers Posts £300,000 Six-Month Profit

Scottish Premiership side Rangers "announced an operating profit of £300,000 in its unaudited results" for the six months to Dec. 31, according to the BBC. This compares "favourably" to a loss of £500,000 in the same period in '15. Revenue increased by £5.3M year-on-year to reach £16.3M "thanks to bigger attendances, greater income from playing top-tier football and greater sponsorship and commercial income." But "operating expenses rose too," by £4.1M to £15.5M. The club said that additional funds are available if required by the club "during the current rebuilding phase" (BBC, 3/23). In Glasgow, Gary Ralston reported Rangers Chair Dave King "has taken the club into profit for the first time since he seized control two years ago." Rangers admited it is "still reliant on soft loans from shareholders," including King and Douglas Park, to fund a "shortfall in finance" but said that "no further investment is needed before the end of the season." Directors handed the club £2.9M in October to "boost the club's bank balance" and promised another £850,000 in financial support this month, but it is "unclear" if Rangers has "drawn down the second tranche of promised funding." The club also insisted "the overall financial outlook for the club is improving, with only the ongoing dispute with Sports Direct hampering the club's financial performance" (DAILY RECORD, 3/23).

COURT BATTLE: The PA reported retailer Sports Direct and League Championship side Newcastle United Owner Mike Ashley is "embroiled in a High Court fight with Rangers over a merchandise deal" said to result in the Scottish club getting about 7p of every £1 ($1.25) spent. Bosses at a company within the Sports Direct group said that Rangers directors "wrongly terminated a deal through which branded products, including kits, were sold and want damages." Rangers' directors "dispute the claim." In May, Rangers' directors said that they were "going to rip up contracts held with a merchandise company, Rangers Retail, they ran with a Sports Direct firm." The deal had been agreed by former CEO Charles Green. But King and other directors were "unhappy with the arrangement." William McCormick QC, who is leading Rangers' legal team, said that "fans became angry after learning that the club only got around 7p of every £1 spent and had staged a merchandise boycott" (PA, 3/22).

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