The club's audited annual accounts up to 30 June show a net debt of �16.5m, up from �5.9m the previous year.

The lack of Champions League football led to an �8.2m reduction in advertising revenue to �3.1m.

However, turnover from ticket sales, television and related income rose by 7% to �31.3m, while net operating expenses fell by 22% to �43.1m.

This reduction was the result of the discontinuance of the retail operation, which was transferred to JJB Sports in a deal which guarantees the club �3m net royalties together with the amortisation of a �14.5m payment.

A cut in players' salaries helped the Ibrox club reduce their wage bill by 5% to �24.3m, while they made a �1m gain on player registrations.

Chairman Sir David Murray said: "Our performance in Europe in reaching the last 16 of the Uefa Cup, whilst credible, was disappointing financially compared to the previous year's achievement of reaching the last 16 of the Champions League, and underlines the importance of participation in that competition.

"Encouragingly, however, underlying growth was achieved in all other commercial areas of the business."

Net interest payable on the debt was �1.3m and turnover from continuing operations fell by 4% to �41.8m.

Rangers have spent close to �5m on summer recruits Carlos Cuellar and Lee McCulloch.

And manager Walter Smith may yet add to the eight new faces he has brought in since the end of last season.