Cavenagh reveals £16m Rangers share issue – Daily Business

Andrew Cavenagh: reviewing every part of the club

Rangers will raise £16m in a share issue to fund investment in the men’s squad, the club chairman Andrew Cavenagh has announced.

He also announced that adult season ticket prices will increase by 6.5%.

Mr Cavenagh stated the share offer will be supported by his consortium and existing club shareholders and will take investment by the consortium to £36 million since it acquired the club last summer.

There will be no replacement for sporting director Kevin Thelwell who departed in November along with Patrick Stewart, the ex-chief executive.

“We do not plan to hire a sporting director. The executive team is committed to being smaller, nimbler, and more entrepreneurial,” said the chairman.

“We want an executive team willing to get its fingernails dirty. If there is a hole to be dug, we want people fighting over shovels. We want fewer consulting firms and less bureaucracy.”

Shareholders will be required to buy a minimum of 1000 shares. Explaining the reason for the share issue, he said: “Increasing the revenue and capital is only part of the path to allocating more resources to the men’s first team.

Kevin Thelwell will not be replaced

“If we are going to ask supporters to pay more for tickets, we have an obligation to spend those funds wisely.

“We have shrunk the size and cost of the executive team. We are systematically reviewing every part of the club, looking for ways to be more efficient, thus enabling a greater share of the resources to go to the men’s first team.

“The costs to run the club – player wages, agents’ fees, security, food and beverage – are all rising faster than the overall rate of inflation.

“We either need the club’s revenues to keep pace, or we need to decrease the money spent on the squad. We don’t believe this is the time to decrease the player and football budget; in fact, we think the opposite.”

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