DESPITE their problems in the past decade or so, Rangers remains a huge institution that is well supported and needless to say, a systemic club for Scottish football. Rangers’ decline was not good for the game north of the border, indeed it allowed their bitter rivals Celtic to take total control in Scotland and stride ahead of its competitors. While Celtic’s fans revelled in Rangers’ discomfort in their wilderness years, the harsh fact is the two clubs need each other and Scotland hankers for the duo to be strong, although not so powerful that the rest of the Scottish League continues to have little hope of any success.
It could be argued that Rangers, along with Tottenham and Arsenal, are among the biggest clubs never to have won the UEFA Champions League. For Rangers – and indeed Celtic – that looks like the impossible dream, but in terms of size, support and influence, the Gers are a mighty club that lost its way some years ago.
But there is a whiff of optimism in the air at the moment after the 49ers of San Francisco became majority shareholders (51%) in the club. The new owners, who also control the NFL team, the San Francisco 49ers, and newly promoted Leeds United, are the De Bartolo York family, led by Denise De Bartolo York and Jed York. Mrs De Bartolo York is the daughter of the late construction magnate Edward J De Bartolo Senior, who died in 1994. He bought the 49ers in 1977 and 49ers Enterprises became the business arm of the club.
The new owners injected £ 20 million into the club, which seemed a positive move at first glance, but it is hardly a transformational figure. Rangers fans wanted change, however, as the past 10 years have seen them fall so far behind Celtic (in what was once a two-horse race). The Ibrox regulars are running out of patience, but the task is easily defined; Rangers have to overtake just one club and if they do that, everything else could slot into place.
But it’s not a simple mission, for Rangers have to grow their revenues and become more profitable. In order to do that, and close the gap on Celtic, they need regular Champions League football beyond the qualifying stages. Their last involvement in the group stage was in 2022-23, which would have been lucrative, but their record was startling: played six, lost six, goals scored two, goals conceded 22. Admittedly, their opponents were very daunting; Liverpool, Ajax and Napoli. Celtic, by contrast have had five Champions League campaigns that have ended in the group stage/league phase, which has earned them over £ 100 million over the past three years.
Celtic have bigger crowds than Rangers by around 10,000 but the differential in earnings is only around £ 6 million (Celtic’s £ 49m versus Rangers’ £ 43m). Celtic’s ground is bigger, but Rangers are about to increase their capacity with some improvements to the Ibrox stadium. Celtic also have higher income from TV and commercial activities. Interestingly, the wage bills are similar, which means Rangers are absorbing a higher percentage (69% versus 53%) of their income and not getting very good value for money.
Getting closer to Celtic is not going to happen quickly and will require more money than a £ 20 million injection, especially as Celtic had something like £ 77 million in the bank in their 2023-24 financials while Rangers had less than £ 2 million. The new owners are looking for the club to become self-sustaining, which will take time. Celtic operate on a break-even basis and in the past 10 years, they have made £ 85 million in pre-tax profits and only twice have they made an annual loss. Conversely, Rangers have lost over £ 100 million and have been in deficit every single year.
The 49ers appear to be keen on implementing a data-driven system at the club, which can be productive, but equally, can go horribly wrong. Although they own Leeds, it is unlikely they will adopt a multi-club model.
Without European football at the highest level, it is difficult to see how Rangers can bridge the chasm between themselves and Celtic both on and off the pitch. The potential is there, but can the club’s new American owners transform what has become a very sleepy giant?
