Scottish Championship side Rangers shareholder Mike Ashley has stepped in with another £1M ($1.58M) "bail-out" for the "crisis club" and has given up the naming rights to Ibrox Stadium, according to Gregor Kyle of the Scotland DAILY RECORD. A new marketing deal, welcomed by the board as a "visible demonstration of the Sports Direct support and long term commitment to Rangers," has also seen Ashley "give up the Ibrox naming rights -- which he purchased for the paltry price" of £1 ($1.58). The move highlights the "deepening financial concerns at the Championship club and also strengthens Ashley's hold in Govan," with Ashley already owning almost 9% of club shares (DAILY RECORD, 11/12). The BBC's Chris McLaughlin reported Rangers said that it will "need more cash before the end of the year due to lower than expected match attendances." The club said in a statement, "During the autumn, the club has suffered from lower than
expected match attendance which has exacerbated the financial condition
of the business. The directors have begun a cost cutting exercise, but
further working capital in addition to the Facility will be needed
before the end of the year" (BBC, 11/12). The PA reported Rangers Chair David Somers said, "This agreement has been concluded to demonstrate the importance both parties place on our relationship. The Rangers board welcomes this visible demonstration of the Sports Direct support and long-term commitment to Rangers." Rangers also "defended their relationship and agreements with Ashley, a move which came a day after the Rangers Supporters Trust wrote to stock exchange officials seeking an investigation into the recent deal." The fans' letter questioned why Rangers had entered into a commercial
agreement that gave Sports Direct "almost half of the profit from replica
shirt sales and naming rights to Ibrox; how Ashley, who has a stake of
less than 9%, had been allowed to place representatives on the board"
when he is forbidden from having "major influence" by an agreement with
the Scottish FA; and why Rangers had "declined a larger
loan offer when accepting Ashley's" (PA, 11/12).
