RANGERS won’t stop investing until they are back in Europe and then they will look to build a sustainable future for the club – according to Dave King.
The Chairman told RangersTV that despite the importance of shoring up things off the pitch the board’s main priority is for the team to be back competing amongst Europe’s elite.
The current board will fund the team until they deem it suitable to invite outside investment in – something King says the board won’t be ready to do for at least a year but insists is necessary for Rangers to build a secure model.
He said: “If you look at the club at the moment and it is obvious that the club needs funding to get it back to its rightful position and that is that at the beginning of every season having a chance of being in Europe and being the main rivals to Celtic.
“We need a competitive team that can do well in Europe, and try and get into the Champions League sometimes, but guarantee Europa League football.
“I think that would be a normal Rangers from my point of view, when we get to that point I think there after it is important to operate on a sustainable basis.
“I think we recognise a need to fund it to get it there because so much damage was done to club and we can’t rebuild it without making that investment, which is why we’re here.
“After that you can’t continue to go to your shareholders all the time, that’s not a sustainable business model.”
“Regarding investment I just don’t think we have a case to offer, if someone was to say to me “Well what is happening with the litigation, what is happening with Sports Direct, what is happening with all of this?”
“You can’t really give an answer to that that would allow an investor to take a positive view on the club hence you are going to get a very deep discount.
“Someone might come to us and say they’ll invest but do it at 10p per share, we don’t want that.
“I think we have safe pairs of hands and we were able to raise £5 million at short notice but I would prefer to work with the existing group we have who remain committed to the club.
“When I think we have a more investable case, when there is greater certainty on the case flow of the club in the future then that it the right time to go to external investors and say “Look this is the case we have here, this is the level and this is the value of investment. Now come and participate with us.”
“I think we are at least a year away from even being in a position to go to the market but it is something I would like to do and something important for the club.
“It shouldn’t long term be based on a few key individuals and we have seen that hasn’t worked for the club before.”
Away from Sports Direct’s commercial interests in the club King confirmed the board have been doing substantial work to improve current commercial contracts.
He says that improvements and changes are expected to be made by next season with work ongoing.
The Chairman explained: “I think if you look at a lot of the commercial contracts, and I’m not talking about Sports Direct just to make sure there’s no injunction, I think a lot of them were poorly negotiated.
“I think Rangers found itself in difficult circumstances in terms of the media value.
“I think those charged with looking after the club at that time were short-sighted and knee-jerk in some of the negotiations, and they didn’t really see beyond the next couple of weeks or the next season.
“A lot of these are maturing as well, so we are in a position to go to partners or other investors, and I think at the right level of value that we think that the Rangers name and the Rangers brand should support.
“So there are a number of opportunities right now to get back to what I would believe are a more normal valuation of the Rangers brand when negotiating with potential partners.
“There is nothing maturing within this season, but I would say it would say the start of next season.
“Then it will continually increase as other contracts mature and we start to replace them with other contracts with far better value and that recognise the true value of Rangers within Scottish, British and European football.”