Scottish giants Rangers posted a £14million loss in their accounts earlier this week.
Smith explained that the investment in new players over the summer has cost the club. He added that Rangers’ lack of income from other sources has contributed to the issue as well.
Smith said: “It depends on where the money is coming from and who the backers are in terms of covering that and whether it’s sustainable. They are going to make some money from the Europa League this year but they are not getting any money from selling players or Champions League money, which Celtic have managed to do in previous seasons. It just depends on the backing he has got. It is a little bit of a worry, especially the fact that with that kind of spend and he [Steven Gerrard] is saying he wants backing from the board if he has to go get more players in January. He’s already questioning the quality of the players he has got there.”
It will be interesting to see how much of a financial backing Gerrard receives in the January transfer window now. Recently, the Rangers manager hinted that there could be new signings in January.
After the declaration of losses, the situation might change for Rangers. Gerrard might just have to get through the season with the players currently at his disposal.
Rangers cannot afford to overspend and then risk a financial meltdown.
Smith’s comments are certainly valid and Rangers must deal with this situation carefully.
The Scottish giants must look to improve and get the most of the resources at their disposal now instead of looking at new players this season.