Scottish Championship side Rangers shareholder Mike Ashley's grip on the club is "under threat after Scottish football authorities filed a formal case against him for alleged breaches of rules relating to running more than one club," according to Roger Blitz of the FINANCIAL TIMES. The Sports Direct entrepreneur is the owner of EPL side Newcastle United and has "built up a stake in Rangers" that stands at 8.9%. He signed an agreement with the Scottish FA that he would not take his stake above 9.9%, in order to comply with its "dual interest" rules. But the undertaking "also required" Ashley not to exert "undue influence and control over Rangers." He has negotiated with Rangers to provide two loan payments totaling £3M ($4.7M). He "also agitated for the removal of two directors," including former CEO Graham Wallace. Wallace and former financial consultant Philip Nash "subsequently quit the club" (FT, 12/15). In London, Ewan Murray reported Rangers have been accused by the SFA of breaching three rules, with Ashley two. Ashley has a "stranglehold over Rangers' commercial rights," recently loaned the club a "much-needed" £3M and was behind the appointment of Derek Llambias as a non-exec director and Barry Leach as a consultant. Included in the rules "allegedly breached by both Rangers and Ashley is
the one that prevents someone holding involvement" at a member club who "may at the same time either directly or indirectly: (a) be a member of
another club; or (b) be involved in any capacity whatsoever in the
management or administration of another club; or (c) have any power
whatsoever to influence the management or administration of another
club" (GUARDIAN, 12/15). The BBC reported Rangers have further been accused of not acting "with the utmost good faith" towards the SFA and its member clubs. Newcastle has declined to comment, but the EPL has "no rules outlawing dual ownership." However, the Football League does have "specific rules
banning interests in more than one football club -- so if Newcastle were
relegated, Ashley's stake in Rangers would then become an issue in
England" (BBC, 12/15). The Scotland DAILY RECORD reported if found guilty, Rangers could face a "range of punishments that include a censure, fine, being thrown out of the the Scottish Cup, a transfer ban or even having their membership of the SFA terminated." Ashley, meanwhile, risks a £10,000 ($15,650) fine if he "fails to have the charges dropped" (DAILY RECORD, 12/15).
