RANGERS squandered nearly £70MILLION of investment that was raised over an 18-month period the Ibrox club today revealed.
The details of the 120-day business review carried out by Gers chief executive Graham Wallace were finally made public this morning.
And in a statement to the London Stock Exchange it was confirmed that the troubled Glasgow club is in a “precarious financial condition”.
However, the board have stated they believe the club will be able to operate within its means by the 2015/16 season due to a series of initiatives.
But they have also revealed that supporters will be unable to pay for season tickets by credit or debit cards this season due to calls for fans to withhold their cash.
The statement read: “At the time of the AGM, the board believed that there was sufficient cash in the business to fund the club through the current season. However, the review found that Rangers was in more
severe financial condition.
“The review process discovered issues in operating procedures, commercial contracts and strategy, all of which were more serious than anticipated.
“The club’s financial position was precarious as it had mismanaged almost all of its cash reserves following administration.
“The cash position today requires careful monitoring but will improve with the sale of season tickets, improved commercial relationships, the planned injection of further capital and cost management initiatives identified by the review.
“The club raised £70.7million through ticket sales, commercial revenues and share issue proceeds between May 2012 and December 2013 and spent this quickly and in some areas liberally, with only £3.5 million of this cash remaining at December 2013.
“The board considers that the perfect opportunity to rebuild Rangers immediately post-administration in a progressive, stable manner with a solid financial base has been completely missed through a series of ill-defined, short-term focused decisions with little advance recognition of medium or longer term requirements.”
The statement continued: “As previously stated, the board has no intention of granting security over Ibrox and has therefore regrettably decided that for the current season ticket renewal process it will proceed with direct payment to the club only by way of bank transfer, cash or cheque payment.
“In the event that season ticket sales over the coming weeks are materially less than anticipated then the company may allot new ordinary shares of 1p to existing shareholders to raise capital.”