Scottish Championship side Rangers shareholder Mike Ashley has called for "the two most senior executives" of Rangers "to be removed as directors -- setting up a battle between the club's board" and Ashley, the "billionaire controller" of retailer Sports Direct and EPL side Newcastle United, according to Alistair Gray of the FINANCIAL TIMES. Just days after he increased his stake in Rangers to almost 9%, Ashley has demanded that Rangers CEO Graham Wallace and Dir Philip Nash "stand aside." His call will "further fuel speculation" that he is "planning to launch a bid for control of the Glasgow club." Rangers are in "urgent need of further funding" even after the club raised £3M ($4.8M) in "emergency cash" last month. The funds raised in September are "only enough to pay its bills for a few weeks." Investors will be asked to "inject fresh capital when the Aim-quoted club holds its next annual shareholder meeting." The club said in a statement on Wednesday that Ashley has asked that Rangers hold a "separate meeting of shareholders to allow them to vote" on whether Wallace and Nash should remain on the board. Rangers, however said they would "resist his demand," citing "the cost and disruption of an ad hoc general meeting." Ashley "personally holds a stake in Rangers" of almost 4%. His "Mash" investment vehicle recently acquired a further 5% stake (
FT, 10/8).
ROUND TWO: The PA reported Ashley had "previously owned three million shares in the club which he bought when Rangers was floated" in Dec. '12. However, "just three weeks after announcing he would not partake in the emergency open offer the club was forced to launch last month to solve its short-term cash crisis," Ashley spent around £850,000 ($1.37B) on buying "more than four million existing shares from the investment group Hargreave Hale." The open offer was under-subscribed by just less than £800,000 ($1.28B), meaning the club's board will "now have to launch another share issue before the end of the year to meet December's wage bill." In September, Rangers Dir Sandy Easdale said that Ashley had "bought the naming rights to Ibrox" from former Rangers CEO Charles Green, saying, "Mike Ashley could call it the Sports Direct Arena tomorrow" (PA, 10/8). The Scotland DAILY RECORD reported Ashley's call comes amid talks between Wallace and a consortium led by South Africa-based businessman Dave King, the former Rangers director, over a "multi-million pound bailout at Ibrox." King, former Dir Paul Murray and shareholder George Letham have "teamed-up in a joint bid to stave off another financial collapse at the troubled Championship club" (DAILY RECORD, 10/8).
