Finance expert Kieran Maguire has claimed that Rangers fans impacted by the cost of living crisis will affect the club’s revenue as it may have an adverse effect on merchandise sales.
The cost of living crisis has meant that many Britons may struggle with rising prices this winter, and this will have an impact on football fans – particularly the Ibrox faithful.
Rangers’ level of support is such that fans contribute heavily through the purchase of merchandise, but amid this crisis, sales could drop.
According to Maguire, sponsorship and merchandising at Rangers last season totalled around £28.4m, but this could significantly fall as fans spend less on the club during times of difficulty.
Speaking to Football Insider, Maguire explained that this could directly hit Rangers given how much commercial income they usually bring in.
He said: “There is no doubt that everybody in the country is feeling the financial squeeze.
“This applies to football fans just as much as anybody else in the country.
“For Rangers, the club has a very dedicated fanbase in terms of buying merchandise.
“The impact in terms of discretionary spending on shirts is likely to hit the club as far as its top line is concerned.
“They get a significant cut of every unit sold as part of the deal with Castore. The board as well as the fanbase will therefore be looking for an improvement in the country’s finances as soon as possible.”
TIF Thoughts on Rangers…
A drop in commercial income may also be slightly attributed to the differences in on-pitch performance from last year.
Reaching the Europa League final was a historic achievement for Rangers, but a poor season so far has seen the firing of Giovanni van Bronckhorst in favour of bringing back former assistant Michael Beale.
The club need reinforcements in the next transfer window, and a significant fall in commercial income could provide a stumbling block when trying to add quality to the squad.
Therefore, we think Maguire is correct to highlight that the club and fans will be hoping for an improvement in the economy so that full support through ticket and commercial incomes can be given by fans without concern.