Reason Rangers were been monitored by UEFA’s financial watchlist – Uncertainty clouds the Gers despite finance chief assurance

Reason Rangers were been monitored by UEFA’s financial watchlist – Uncertainty clouds the Gers despite finance chief assurance

Glasgow Rangers’ finance director, James Taylor, has addressed the club’s position with reference to UEFA’s financial watchlist for European teams.

In 2022, the Glasgow club was included on a list of 19 clubs being monitored by the regulatory body to ensure compliance with financial standards.

Taylor explained in a lengthy interview with podcast Four Lads Had a Dream that it was due to an accounting modification that was “well within the rules”.

The Gers were able to fulfil their ‘break even’ requirement in that campaign,

although UEFA stated that this was due to Covid measures or positive past results.

Taylor has now highlighted that UEFA’s regulations have altered, putting the club in a better position,

and he has explained the three pillars required to assure their continued existence.

“As a football club, you’re right, we were on a financial watchlist with regards to UEFA and the CFCB (Club Financial Control Body) in relation to a couple of years ago,

and it was specifically around a particular accounting adjustment,”

Taylor was quoted as saying by Four Lads. “It was completely within the laws,

but it was something that was bringing revenue back from a Covid position, which automatically places you on a watchlist.

“That was the case, and I believe UEFA laws are evolving, and the regulation inside UEFA has changed.

Now, we’d characterize FFP as something similar to UEFA club licencing and supervision. So, from a licensing standpoint,

as long as we have a positive balance sheet – there are a number of other factors that play into it – but from a financial sense,

that would check that box, and we’re satisfied with our balance sheet as it stands today.

“In terms of UEFA monitoring, you mentioned the word ‘concern,’

which I want to make sure stays in my lexicon because I need to be on top of these things as accountability is something I take very seriously.

“There are three monitoring pillars, and we are effectively covered by all of them. The first category is overdue payables,

thus we must verify that no football obligations remain outstanding. Transfer fees, contingent transfer costs, and so on.

“The second is about football earnings and what you’d normally classify as FFP,

which you’d see down south in Everton and Nottingham Forest, in terms of long-term deficits.

There are a variety of add-backs available for women’s football, academy football, and community investments.

You calculate your profit and loss and add back a number of investments.

You have an acceptable limit of 5 million euros, so make sure you stay within that.

We were certainly inside that range in the statistics we reported last year, so we are satisfied with that.

That is something you should keep an eye on going forward.

“A team like Rangers has a different commercial environment than Fulham or Brighton. To anyone down south,

because the value of our media income differs from those in England,

a good or bad European season can have a substantial impact on some of those football earnings.

When we make investments, we must ensure that they are sustainable.

So that if we enter the Europa League the next season, we do not have a football earnings blowout.

That is what we’re really close to, and on top of.

“The third is the squad cost ratio, which effectively compares player expenditures, management costs,

and associated earnings to revenue. Add backs and modifications, but UEFA is doing this over a three-year time frame.

This year had to be 90 percent, then 80 percent, then 70 percent, and it will remain that way in the future.

Our present ratio is much below 70%, so we’re content where it is.

This is why revenue growth has been so essential in recent years;

it really offers us a platform on which to build and move forward with confidence in terms of recruiting players, investing in the first-team,

and ensuring the product on the field is as good as we can make it.

All of those we are comfortable with individually but we can’t be relaxed.

From a UEFA standpoint we feel that as a football club we’re progressing.

We’ve got a good relationship with UEFA and that’s important to maintain in future.”

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