Scottish Championship side Rangers' board has "urged shareholders to reject Mike Ashley's demand" for his £5M ($7.69M) loan to be repaid, according to the BBC. Sports Direct Owner Ashley had called for shareholders to "decide whether to repay the funds, sparking a general meeting" on June 12. Rangers Chair Dave King, however, "wants fans to reject the bid." The board said in a statement, "The directors do not consider that, at this time, the repayment of £5m to Sports Direct is the best use of the company's resources." Ashley loaned the previous Ibrox board £5M in January, but "used the opportunity to take security over club assets like Murray Park and famous trademarks," and seized a 75% share of the club's retail income. Rangers have added a second resolution to the agenda, which "calls for their contracts with Sports Direct to be renegotiated." The statement added, "The directors are concerned with
the continued and dramatic reduction in income generated by retail
operations. ... The directors very much want to improve relations with Sports Direct and
have made that clear to Sports Direct's senior executives. However,
this has to proceed on the basis of mutual understanding, respect and
reward" (BBC, 6/3).
