English Premiership

Rangers board 'ok' Ashley loan

2015-01-28 13:07
Mike Ashley (File)

London - Crisis club Rangers have agreed a £10 million emergency loan deal with Mike Ashley's Sports Direct company, the fallen Scottish giants announced Tuesday.

Without the fresh injection of funds from Ashley, the owner of English Premier League club Newcastle, the Glasgow side risked being unable to cover pay checks due to be delivered on Thursday, with Rangers saying their position had been "perilous" for several months.

Tuesday's announcement effectively saw the end of attempts by the Three Bears -- wealthy fans Douglas Park, George Letham and George Taylor, to have their own loan offer accepted.

In a lengthy statement to the London Stock Exchange, Rangers said: "The Board of Rangers announces that Rangers Football Club Limited has entered in to agreements with SportsDirect.com Retail Limited and associated companies, to provide a long term on-going credit facility of up to 10 million.

"The company's financial condition has been perilous for a number of months exacerbated by lower than expected match attendances."

"The terms negotiated with SD (which are reversible in respect of the Facility) represent the optimum combination of quantum and duration of funding, allowing the company time to arrange permanent capital which can be used for strengthening the playing squad."

Rangers chairman David Somers said: "The board has sought for some time to establish a long term funding solution for the company in order to create a platform of stability to build for the future.

"We very much hope that we can now move away from having to seek short term funding solutions and can focus our efforts towards investing in the first team playing squad, a return to profitability and to re-establishing Rangers in the top league in Scottish Football and in due course, to European competition."

This month saw caretaker manager Kenny McDowall resign after predecessor Ally McCoist quit Rangers, now in Scotland's second division.

Rangers, with 54 league titles won in their glory days, suffered a series of financial problems with a liquidation crisis seeing them banished to the third division in 2012.

Fans unhappy with the club's financial situation have also had to contend with poor on-field results and Rangers are currently a huge 13 points behind Championship leaders Hearts.

 

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