Mike Ashley’s offer of an emergency loan looks to have been deliberately timed, coming just a day after Dave King flew back to South Africa having failed to broker a long term deal with the Rangers board. Sources close to Ashley believe Rangers are in severe financial difficulties and require an immediate financial injection. The club is thought to have a major funding shortfall, with the loss of around 15,000 season ticket holders, coupled with high staffing costs, leaving 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 pound loans from major shareholder Sandy Easdale and supporter George Letham.
Now Rangers have three more offers of financial assistance on the table – from Ashley, King, and from Sale Sharks owner Brian Kennedy, whose consortium the “Blue Knights” lost the battle for control of Rangers to Charles Green during the administration of 2012. Ashley’s offer is understood to be worth in the region of £2-3m, which sources have indicated would be enough to keep Rangers running up until Easter. The offer comes with the caveat of boardroom control, which matters in relation to Philip Nash’s recent resignation. He and Chief Executive Graham Wallace were the key boardroom figures in persuading King to table a financial package.
Ashley’s EGM motion earlier this month proposed the removal of Nash and Wallace from the board – now with Nash gone, Wallace’s own position will come under intense scrutiny. He is one of only four directors remaining, the others being Chairman David Somers, Norman Crighton and James Easdale, the brother of Sandy Easdale.
King’s offer has failed to gain the approval of Sandy Easdale and his voting bloc, which controls 26% of Rangers shares. Sources inside Rangers have suggested that King’s offer is now unlikely to be accepted, but the former director confirmed tonight that the proposed £16m cash injection (with £2m available immediately), with a guarantee of 51% of new shares, remains on the table.
Ally McCoist has been on record expressing his support for Graham Wallace, but also has close ties with Dave King stretching back to the time when Sir David Murray ran Rangers. The isolation of Wallace, and the waning influence of King’s offer, could place the Rangers manager between a rock and a very hard place.