Rangers Secure Additional Ashley Loan

27 Jan 2015 | sigadmin

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Struggling Scottish football club Rangers has accepted a further £10m from Mike Ashley’s Sports Direct retail company in order to stay in business, with the Newcastle owner securing security over the club’s Murray Park training ground, registered trademarks and other properties.

However, Ibrox Stadium is not included in the latest deal, with the prospect of the ground being included led to protests from the club’s fans.

£5m will be available as immediate working capital and will also be used to repay a £2m loan made by the Newcastle United owner on 27th October.

Rangers are also giving Ashley a further 26% of shares in Rangers Retail Limited for the duration of the loan, 49% of which was already owned by the English businessman.

According to BBC Scotland, any shirt sponsorship proceeds from 2017-18 will be for the benefit of RRL and the second £5m tranche of the loan will only be drawn down if required and only after due diligence by Sports Direct.

Ashley, who already owns 8.92% of Rangers shares, has was recently blocked by the SFA from increasing his stake to just under 30%.

In addition to security over Murray Park, Edmiston House and Albion Car Park, Sports Direct will also have the right to nominate two directors to Rangers’ board for the duration of the loan.

Following Ashley’s previous loan, former Newcastle managing director Derek Llambias became Rangers’ chief executive, while Sports Direct executive Barry Leach was appointed finance director, leading to former director and shareholder Dave King calling for a general meeting to replace the current board.