Rangers Football Club is likely to need to rely on external investors to be able to trade until at least the 2017/18 season.

Accounts for the year ending June 30 2016 show the club cut their year-on-year losses from £7.7m to £3.3m. An increased turnover of £22.2m, up from £16.3m, was also posted.

However with the club's retail revenues still cut off in a dispute with Sports Direct, Rangers say they will need benefactors to stump up £3.75m for the team to see out the current football season.

Almost £3m of that amount has already been made available, with the balance due to be received in March 2017.

The report says that "further funding may be required" depending on whether manager Mark Warburton can guide his team to European football next campaign.

Rangers say they have received undertakings from investors that they will continue to provide financial support.

Since March 2015, the Ibrox side have received loans from directors and other parties.

Chairman Dave King has provided a total of £4.5m, of which £3.7m has so far been drawn down.

Douglas Park, John Bennett and Paul Murray - all directors of the company - have provided £2.45m, which is due to be repaid in December 2017.

A group of investors comprising of George Taylor, George Letham, Andrew Ross, Barry Scott and Scott Murdoch have provided loans of almost £3.9m.

The accounts come with a going concern warning from its auditors, who highlight that the company needs to raise additional finance to see out the next financial year.

It is also revealed that a long-running dispute with the Scottish Professional Football League over a financial penalty imposed on the old Rangers company has been resolved in the league's favour.

Rangers argued that they were not liable for the fine and costs total of £400,000, despite agreeing they would take responsibility in a deal which allowed the transfer of membership of the Scottish FA.

After taking the matter to arbitration, Rangers were ordered to pay £286,000. The club say they have settled the amount.

A boost in crowd numbers helped contribute to the club's 36% increase in turnover, with average home league attendance hiking from 34,556 to 44,359.

The report outlines that Rangers sold over 10,000 more season tickets than in the previous year, taking in £9.5m in comparison with £6.3m in 2015.

It also refers to the interest-free investor loans of £6.2m, which allowed the club to help repay the SportsDirect.com Retail Limited loan.

The report's business review, signed by Mr King, said: "Unfortunately the situation with Sports Direct, which has been well documented, continues to impact on our commercial revenue streams but steps are being taken to improve our general commercial performance with staffing levels increasing to better service our clients and attract new sponsorship.

"The results for the year reflect a period of improvement both on and off the pitch.

"Renewed optimism amongst the fans and a much improved product on the pitch has had a significant financial impact on match day revenues and therefore on the results of the business."

The board said that it was continuing with its efforts to "re-establish financial stability" within the club.