Rangers Bite Ashley's Hand Off

Last updated : 25 October 2014 By Ed_ScottishFitba

C:WindowsTempphp70DB.tmpRangers' board has voted to accept Mike Ashley's offer of an emergency loan to ease their financial position and therefore rejected a similar offer from Sale Sharks owner Brian Kennedy. The Newcastle owner already owns an 8.92% stake in the club and will now enjoy greater influence within the club, following the board’s decision to accept his £2m offer. Kennedy, who was a member of the Blue Knights consortium which failed to stop the club from sinking into liquidation in the summer of 2012, had made a last-gasp £3m counter offer. However, the cash-strapped club have opted to put its faith in Ashley. Discussions were held overnight and it has been reported that, as part of the agreement, chief executive Graham Wallace will step down.

The club is thought to have a major funding shortfall, followed by the loss of around 15,000 season ticket holders, coupled with high staffing costs, which has left a huge financial hole. Rangers’ most recent interim accounts in March of this year showed losses of £3.5m for the final six months of 2013, with the same amount available in cash reserves. In September, the club belatedly repaid two £1m loans from major shareholder Sandy Easdale and supporter George Letham.

Earlier this week, former director Dave King failed to reach an agreement with the Rangers board over a proposed £16m cash injection into the Scottish Championship club. King has already returned to South Africa after talks broke down without an agreement. King, backed by former Blue Knight Paul Murray and wealthy fan George Letham, was looking for a controlling stake at Ibrox in return for a cash injection. However, this required the approval of Sandy Easdale, the club's football-board chairman who controls around 26% of the shares.