Glasgow Rangers allegedly used future income from its catering operations to fund the recent upgrade of the club’s kitchen and kiosk facilities, according to reports in the Scottish media today.
The Herald claims the club — which last week filed for administration — entered into a hire purchase agreement with finance house Close Leasing in the middle of last year to pay for the £1.7m project.
The newspaper said Companies House filings show that Close Leasing now has a security over future catering revenues, a move that is usually brought in to ensure payment.
It means Surrey-based Close would receive a proportion of the sales Rangers makes from its contract with match-day catering partner Azure.
The Herald said Close Leasing had refused to comment on the matter, but added that sources for the administrators Duff and Phelps confirmed the equipment was bought on a hire purchase agreement.
The project to install new catering kiosks at the club’s Ibrox stadium was managed by ScoMac Catering Equipment.
On the eve of Rangers’ administration last week, ScoMac chief Iain Munro confirmed that there was no danger of suppliers or sub-contractors involved in the project being left out of pocket as it had been fully paid for its work.
Asked if he wished to comment on today’s reports about the method of funding Rangers used, Munro told Catering Insight: “Obviously we knew who was paying us as the payments came from them — and regarding the arrangement the client had with Close Leasing we had no knowledge of the deal.”
ScoMac began the refurbishment of 42 stadium kiosks back in May last year and received payments at various stages as the project progressed. In November 2011 it received the final payment for work completed in 2011 with the remaining 20% for the last phase of work paid earlier this month.