The Scottish FA has written to Scottish Championship side Rangers and shareholder Mike Ashley "seeking clarification about his intentions" for the club, according to Chris McLaughlin of the BBC. Ashley, who owns EPL side Newcastle United, has provided Rangers with a £2M ($3.2M) loan in "return for him having two representatives on the Ibrox board." Ashley already "owns about 9% of Rangers." However, he has "signed an undertaking with the SFA that he will not acquire more than 10% of the shares or have influence at boardroom level." Ashley's deal, which was agreed on Saturday, has the "option of providing Rangers with further loans." It also "stipulates that he could underwrite a future share issue." However, if that were to happen it could "take his stake in Rangers International Football Club plc, currently 8.92%, above the 10% threshold if other investors were not sufficiently attracted to the share offer to commit their money" (BBC, 10/27). In Glasgow, Duncan & Gannon reported Ashley's right-hand man Derek Llambias landed in Glasgow and "told Rangers fans to put their faith" in Ashley. The 50-year-old was Ashley's "right-hand man at Newcastle and the Sports Direct supremo now wants him to replace ousted Graham Wallace" as CEO. Llambias has been "drafted in as a consultant" and on Monday would "only admit he has applied for the chief executive role." Ashley wants him on board but "must go through the application process to meet stock market rules." Llambias: "Mike Ashley has got a great track record but I can't give you any comment. I'd love to but I can't" (DAILY RECORD, 10/28).
TAKEOVER CONTINUES: REUTERS' Michael Hann reported Ashley "continued what appears to be a stealth takeover of Rangers." Rangers Dir Sandy Easdale, who controls 26% of the club's shares, said on Tuesday that Llambias is "working as a
consultant, having previously backed Ashley's investment in the club." Easdale: "Mike's
a very wealthy individual and he really does want to help the club. I would hope (it will bring stability), we've got to look
forward now. " Rangers Manager Ally McCoist said, "The news of Mike's involvement is good news. I've said all along the club needs investment,
so we've got it" (REUTERS, 10/28).
ASHLEY, EASDALE BRANDED 'BULLIES': In London, Roddy Forsyth reported Ashley and Easdale have been branded "bullies" and the plc directors as "cowards," in the "first response by the Union of Fans, the umbrella group for disenchanted supporters of the beleaguered Ibrox club." The Union of Fans has "stopped short of calling for a boycott of home matches or of Rangers merchandise sold through Ashley's Sports Direct retail chain -- although their statement invited fans to consider that their money would now be used to strengthen the entrepreneur's position at the club." A "fringe group, the Sons of Struth, have called for fans not to attend Tuesday night's Scottish League Cup quarter-final against St Johnstone" (TELEGRAPH, 10/28).
PROTESTS AND PROFIT: In London, Ewan Murray opined Rangers fans "may be angry about the increasing prominence" of Ashley as a dealmaker at their club but it may prove "mutually beneficial if he stems the epic level of cash-burn at a business which recently went through" £70M in roughly two seasons. It will "not take Llambias long to work out one thing: that Rangers are still spending far too much money." Annual losses run into "several million pounds," which means around £10M ($16M) will need to be "sourced between now and the end of the season alone." An "element of the Rangers support continues to make an almighty racket
about Ashley's involvement." As "entitled as they are, of course, there
should also be a realisation that the exercise is pointless." Ashley has
"no interest whatsoever in being popular" (GUARDIAN, 10/28).
