Sports tycoon Mike Ashley to buy stake in Rangers

[Frankie 8,157]

http://www.heraldscotland.com/news/home-news/sports-tycoon-mike-ashley-to-buy-stake-in-rangers.18397998

 

 

BILLIONAIRE Mike Ashley is in advanced talks with Rangers chief executive Charles Green about buying a stake of up to 10% in the club and forming a joint venture to sell its replica kit through his Sports Direct stores.

 

Sources told The Herald last night that a deal between Newcastle United owner Mr Ashley and Mr Green is expected to be completed within days.

 

Mr Green has been pressed repeatedly by Rangers fans to reveal details of his plans for financing the club's ongoing operations.

 

Mr Ashley, pictured, a controversial retail tycoon who has had a rollercoaster relationship with the City and Newcastle United fans, has deep pockets. His near-69% stake in Sports Direct, which has defied the economic downturn â?? as rivals including JJB Sports have struggled â?? is worth more than £1.2 billion.

 

Mr Green led a consortium that paid £5.5 million to buy the assets of Rangers â?? who last night beat East Fife 4-0 in the first round of the Scottish Communities League Cup â?? from liquidation in June.

 

One source said the price of a 10% stake in Rangers would be "like chicken feed" to Mr Ashley. In 2006, when Rangers was owned by Sir David Murray, JJB signed a £48 million deal to sell the Old Firm club's merchandise on an exclusive basis over the next 10 years.

 

Sources yesterday highlighted a belief that this contract would have lapsed with Rangers' fall into liquidation, ahead of Mr Green's purchase of its assets.

 

A spokesman for Mr Ashley refused to comment on his deal to buy into Rangers and a club spokesman said: "It is speculation and we will not comment on commercial matters."

 

But a source said: "Talks are at an advanced

 

stage and the deal should be signed in the next few days."

 

Sports Direct has been faring significantly better than JJB Sports in the cut-throat retail sector. The £1.7bn stock market worth of Sports Direct eclipses the £22m valuation of JJB.

 

A source familiar with Mr Ashley told The Herald: "Mike has a great business. He certainly knows what he is doing on the merchandising, on the logistics front, that is for sure. Mike will want to get JJB out of the way and pick up the merchandise. It gets him a seat at the table."

 

A spokesman for JJB Sports said: "We continue to work with the Rangers owners."

[Anchorman 0]

I'll tell you what - any possible investor looking in on last night must be rubbing their hands at the potential return for their money. Especially if it's merchandise. I would imagine any good marketing departing would have to have a good 'feel' for the demographic they are trying to aim at, and judging from the seige mentality and defiance building up I think it's clear the punters are going to be proud to wear our merchandise in great numbers for years to come. Ashley would love to tap into that I'll bet.

[Crimson Dynamo 128]

Would be good news for Rangers on two fronts. The business connection and all the possible commercial advantages and the footballing Newcastle seem to have a good record with signing players developing them then punting them for massive profit in recent years anyway. Not sure how much of that is down to Mike Ashley tho.

[Daniel Amokachi 0]

Someone on RM said this was happening a few days ago.

[Stefanovitch 0]

Could this be linked to the delay, if there has been one, in launching the new away kit?

 

It seems odd our season is underway and we still haven't launched an away kit although I see no immediate problem in using last years away kit.

 

Am I also correct in thinking that a link up Ashley's Sports Direct would see us switch from Umbro to Puma a lá Newcastle United?

[der Berliner 3,259]

So essentially, the JJB deal of the oldco is "in jeopardy" if Ashley follows up his share interest, if the deal actually made it through the admin process.

 

Interesting to see the lax use of the word "liquidation".

[Daniel Amokachi 0]

Could this be linked to the delay, if there has been one, in launching the new away kit?

 

It seems odd our season is underway and we still haven't launched an away kit although I see no immediate problem in using last years away kit.

 

Am I also correct in thinking that a link up Ashley's Sports Direct would see us switch from Umbro to Puma a lá Newcastle United?

We're not going to have a Puma kit and an Umbro kit, no. Maybe when the Umbro deal runs out.

[Darthter 542]

Do Ceptic have a similar deal with JJB that we have???

 

The reason I ask is that I have noticed recently that JJB don't appear to be "pushing" the RFC stuff as much. At the new JJB store in EK, they do have a large section at the back of the store, but the display at the entrance Septic were considerably more prominent with the mannequin display and there wasn't a single RFC shirt displayed. I also noticed a double page advert in the DR - not a single RFC player shown...Ceptic, Barca etc, but no RFC.

 

I found the above VERY strange considering JJB are supposed to be our official outlet. Maybe a change to Sports Direct would be a considerable boost.

[Tumshie RFC 0]

As much as I think more money going into the club is obviously a good thing I want to go back to the days where we had our own club shops on the High Street and the money that was coming in was going straight back into the club.

[Darthter 542]

As much as I think more money going into the club is obviously a good thing I want to go back to the days where we had our own club shops on the High Street and the money that was coming in was going straight back into the club.

 

That only works if the shops are profitable....otherwise they drain valuable cash from the coffers....