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http://www.telegraph.co.uk/sport/football/teams/rangers/11325238/Rangers-board-in-crisis-talks-after-emergency-500000-loan.html

 

In a day of high drama at Ibrox the Rangers board is negotiating under severe pressure to save the club from financial meltdown for the second time in three years. The plc directors are frantically trying to strike a deal with the investor alliance of Dave King – a former Rangers director – and the Three Bears consortium, who last week scooped up available shares in an audacious raid.

 

The astonishing development followed Telegraph Sport’s disclosure last night that the unpopular Ibrox regime had reached a crisis, which was confirmed today when the club’s board announced to the Stock Exchange that they had accepted an emergency loan of £500,000 from its football chairman, Sandy Easdale, to stay afloat for another few days.

 

The Telegraph had revealed that a major announcement to the LSE was imminent, in respect of Rangers’ parlous economic situation. The trigger was a bill from HMRC for payment of National Insurance, under threat of a petition by the tax authority for the club to be placed into administration if the account was not settled immediately.

 

Easdale’s loan is secured on the fee – believed to be £1 million - obtained from Brentford for the transfer of the highly rated 20-year-old midfielder, Lewis Macleod. When Rangers confirmed MacLeod’s sale to the Stock Exchange on Friday, the announcement said that the proceeds would “be used for immediate working capital”.

 

The announcement of Easdale’s loan stated that the £500,000 would “be used by the Company for general working capital purposes over the next few days”. The statement added that the loan had been offered and accepted “on a fee and interest free basis and it will be secured against the income from the sale of player announced on 2 January 2015”.

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The situation whereby a short-term loan of working capital is secured on recently obtained and desperately needed working capital is not only designed to stave off immediate administration, but also to keep the club afloat while the directors try to salvage what they can before surrendering to what now looks like an inevitable takeover by the fan-friendly axis of King and the Three Bears. However, three possibilities are in play.

 

One – currently looking the least likely - is that Mike Ashley will come to the board’s rescue, having secured control over the appointment of two directors in return for £3 million of emergency funding in October. However, the Newcastle United owner had previously tried to negotiate with the Scottish Football Association to increase his stake at Ibrox from 8.92% to 29.9% but was refused by the governing body, who insisted that he should comply with his written undertaking not to go above 10%.

 

The second option is an £18 million takeover offer from Robert Sarver, owner of Phoenix Suns basketball club. That offer was also notified to the Stock Exchange at the start of business this morning.

 

Again, Telegraph Sport led the way in revealing that there had been conversations between Sarver’s advisers and those connected with the Three Bears consortium of wealthy shareholders, who have bought a substantial tranche of Rangers shares, as has the former Ibrox director, Dave King.

 

Rangers’ second Stock Exchange statement today read: “The Company notes recent press speculation and confirms that it has received an approach from Robert Sarver (or a vehicle to be established and controlled by him) ("Mr Sarver") that may or may not lead to an offer being made for the Company.

 

“There can be no certainty that an offer will be made, nor as to the terms on which an offer may be made. A further announcement is expected shortly.”

 

Takeover rules mean that Sarver has until 5pm on February 2 to confirm or withdraw his offer, which is worth £18 million and designed to give him complete control of the club’s equity. Again, there are difficulties with this proposal.

 

As the Telegraph disclosed, Sarver has an interest in investing in European football clubs, as opposed to a strategy based solely on a single outfit such as Rangers. A full equity bid would take time to implement, even if it found favour with the majority of investors.

 

When King placed an offer of £16 million in October – the deal rejected by the Rangers plc board in favour of Ashley’s short term fix of loans – it was in the form of a debt and equity mix that would have lent the club sufficient money to keep it going through the takeover process.

 

Another problem for Sarver is that, taken together, the recent share purchases by King and the Three Bears – Douglas Park, George Letham and George Taylor – constitute a little over 34% of Rangers’ stock. They have been pledged support by other disenchanted investors and have also been allocated proxy votes.

 

The King/Three Bears axis know that they can now call upon sufficient support to outdistance the Ashley/Easdale camp by a significant margin. Having got themselves into such a favourable position they are not inclined to stand aside for Sarver although they have, as would be expected, let it be known that they will happily have him on board as a like-minded investor.

 

This is well short of Sarver’s original intent of attaining complete control of Rangers before looking elsewhere to acquire other football interests. One obvious objection to that as a long-term strategy is that it would infringe the same dual-ownership regulations that have prompted a disciplinary complaint against Ashley by the SFA.

 

In any case, time is now the pressing enemy of all the contending parties. If the club runs out of cash and is forced to enter administration for the second time in three years Rangers will be consigned to a fourth successive season in the lower leagues – a prospect feared by the Scottish football authorities as well as other clubs who would benefit financially from their return to the top tier, as a consequence of better sponsorship and broadcast deals than are currently available.

 

Rangers are again teetering on the edge of a financial precipice as the principal personalities jostle on the brink to establish who will be thrust over to the rocks below - and who will be left standing to inherit whatever remains of this once immensely proud and respected club.

Edited by the gunslinger
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from FF

Originally Posted by jgdisco1

 

- The current board is done and they now have gave up. The 500k emergency loan is simply a short term move to allow a deal to happen.

 

- Robert Sarver is independent to anyone and he's reached out to 3 bears and King to see what options exist for him. Feeling from 3 bears and King is that time is now to stabilise the club before bringing in outside investment. If he's still interested after this then of course he'll be entertained for discussions.

 

However, there are other prominent businessmen who are also in tent with 3 bears who will get to become more known over next few months.

 

- ideally the 3 bears and King want to acquire the club this week if possible - sticking point is Ashley, however, movement on terms underway.

 

As long as current board and Ashley don't do anything completely silly then I believe checkmate is here for 3 bears and King.

Edited by Steve1872
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The latest:

 

- The current board is done and they now have gave up. The 500k emergency loan is simply a short term move to allow a deal to happen.

 

- Robert Sarver is independent to anyone and he's reached out to 3 bears and King to see what options exist for him. Feeling from 3 bears and King is that time is now to stabilise the club before bringing in outside investment. If he's still interested after this then of course he'll be entertained for discussions.

 

However, there are other prominent businessmen who are also in tent with 3 bears who will get to become more known over next few months.

 

- ideally the 3 bears and King want to acquire the club this week if possible - sticking point is Ashley, however, movement on terms underway.

 

As long as current board and Ashley don't do anything completely silly then I believe checkmate is here for 3 bears and King.

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The latest:

 

- The current board is done and they now have gave up. The 500k emergency loan is simply a short term move to allow a deal to happen.

 

- Robert Sarver is independent to anyone and he's reached out to 3 bears and King to see what options exist for him. Feeling from 3 bears and King is that time is now to stabilise the club before bringing in outside investment. If he's still interested after this then of course he'll be entertained for discussions.

 

However, there are other prominent businessmen who are also in tent with 3 bears who will get to become more known over next few months.

 

- ideally the 3 bears and King want to acquire the club this week if possible - sticking point is Ashley, however, movement on terms underway.

 

As long as current board and Ashley don't do anything completely silly then I believe checkmate is here for 3 bears and King.

 

from scottyboy1

 

Il second this,

 

Today the board went cap in hand to park&co asking for a deal,

 

We are at no risk of admin, the deal is to allow takeover to happen

 

And as ive maintained we will hope***ly have our club back for hearts at home

 

Anymore update I get I will post

 

P.S the american guy isnt the guy I thought he was, we also have a golf partner of dave kings & AJ sniffing around

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from scottyboy1

 

Il second this,

 

Today the board went cap in hand to park&co asking for a deal,

 

We are at no risk of admin, the deal is to allow takeover to happen

 

And as ive maintained we will hope***ly have our club back for hearts at home

 

Anymore update I get I will post

 

P.S the american guy isnt the guy I thought he was, we also have a golf partner of dave kings & AJ sniffing around

 

God i do hope that is true

 

the lift it would give everyone especially surrounding that game.

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Looks like Ashley and his not so merry band of men have been caught in a pincer movement here, with the Suns of Phoenix and the Sons Of Struth. hopefully it will be all over soon bar the sound of the Ibrox front doors hitting wigs in their arses on the way out.

 

The only fly in the ointment i can see is a bit of horse trading on Ashley's onerous contracts.

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