Scottish Championship side Rangers' power struggle "has deepened" after former Dir Dave King mounted a bid to "remove four board members of the embattled Scottish football club," according to Roger Blitz of the FINANCIAL TIMES. The board issued two statements on Monday, one revealing that New Oasis Asset Management, King's family trust and a 14.6% shareholder in Rangers, "had called a general meeting" to remove Chair David Somers, CEO Derek Llambias, Finance Dir Barry Leach and non-Exec Dir James Easdale. The New Oasis resolution "also proposes appointing to the board" King and allies Paul Murray and John Gilligan. The boardroom coup attempt is the latest maneuvering among rival shareholders trying to "secure control" of the club. Shareholder Mike Ashley, the Sports Direct retailer, is seeking to lend the club £10M ($15M) against its Ibrox stadium, "while a counterproposal has been put forward by the so-called Three Bears consortium of wealthy Rangers fans -- Douglas Park, George Letham and George Taylor" -- which holds 19.2% (FT, 1/19). In Glasgow, Craig Robertson reported Rangers' board of directors on Monday "insisted putting Ibrox Stadium up as security on a loan will provide a 'significant amount of capital' to buy new players and solve the club's financial crisis." The current directors said that they will attempt to "have the notice from former director King 'withdrawn'" but said that if it does go to a shareholders meeting "they will recommend it is voted down" (Scotland DAILY RECORD, 1/19). REUTERS' Kate Holton reported the club said that it was "in talks to agree new funding which could use the club's Ibrox stadium as security." Rangers said that "it was in talks with two of its
stakeholders about raising funds to bolster the team, and that part of a
deal could include using Ibrox as protection." The club said in the statement, "Such a decision would not be taken lightly" (REUTERS, 1/19).
FACING A COUP: In London, Alan Tovey reported Rangers said in a regulatory announcement that it "continues to need funding,
including urgent short term financing." The club emphasized that a "decision about such a move has yet to be finalised and the talks do not mean a deal will go ahead." The regulatory announcement said, "[This] does not mean that security will be given, and the directors are adamant that it will not unfairly advantage the party with whom it was agreed" (TELEGRAPH, 1/19).
RACE AGAINST TIME: The Glasgow EVENING TIMES reported King now faces a "race against time to build an anti-board coalition with
enough shares to win a majority vote" but can expect support from the
likes of the Three Bears. The two groups own around 34% of the club between them -- "roughly the same portion" as controlled by Ashley and the Easdale
brothers. Any move to "use the stadium or the Murray Park training ground as collateral will prove highly controversial." Thousands of fans have "already protested against that possibility
before Friday night's abandoned clash" with Championship rival Hibernian after it was revealed
Ashley was "preparing to have his name added to the title deeds of
both properties" as part of a £10M loan arrangement (EVENING TIMES, 1/19).
ASHLEY VS. KING: The DAILY RECORD reported the fight is "hotting up right now." The "plain, hard facts surrounding the two key players" are outlined below. Ashley is an "undisputed billionaire" -- with wealth totalling £3.37B ($5.1B) -- so he "easily has the means to take Rangers back to the top of Scottish football." King is "also a man of serious wealth, although not in Ashley's league." His net worth is "also less transparent, though he was listed in a South African rich list three years ago." Although Ashley does not have potential problems regarding "fit and proper," he "does have another issue." Being owner of EPL side Newcastle has "set him on a collision course with the SFA." King's "war with the South African tax man began when around the turn of
the century he claimed his taxable income was just £34,000." After a decade-long fight, he "eventually reached an accord with a South
African court when he pled guilty to 41 criminal counts of contravening
the South Africa Income Tax Act." Ashley's involvement with the club is "largely not appreciated by the support." King is seen a "Rangers" man. He is a "fan of the club and a former director of oldco" (DAILY RECORD, 1/19). The SCOTSMAN reported Ashley has the club "cornered," according to former Newcastle Chair Freddy Shepherd, who Ashley "deposed nearly eight years ago." Shepherd suggested that Ashley "was positioning himself as Rangers' bank by making loans available to the club." Shepherd: "Mike is a very clever guy. Look at the way he's
cornered Rangers. He's made himself the Bank of Rangers, what he's done
is take 10 percent of the club but he can't get anymore" (SCOTSMAN, 1/19).
MCCOIST BANNED: In Glasgow, David McCarthy reported Manager Ally McCoist is "being denied the chance to say his goodbyes to the Rangers fans at Fernando Ricksen's benefit game on Sunday by the terms of his gardening leave contract." McCoist, who was replaced by caretaker boss Kenny McDowall after "signalling his intention to work a notice period of 12 months, is not allowed to set foot inside Ibrox or the Murray Park training ground" (DAILY RECORD, 1/19).
