Rangers Agree 10M Loan
27 January 2015, 07:35
The cash-strapped Rangers board has agreed a £10million emergency loan deal with Mike Ashley's Sports Direct firm.
The club made the announcement to the Stock Exchange this morning.
Without the injection of fresh funding, the Ibrox outfit would not have been able to cover pay checks due to be delivered on Thursday.
The loan will be secured against Murray Park, Edmiston House, Albion Car Park, and the Club's registered trademarks - but not Ibrox.
The move spells the end of attempts by the Three Bears - wealthy fans Douglas Park, George Letham and George Taylor - to have their own loan offer accepted.
It was their promise to match Ashley's deal whilst demanding Ibrox remained unsecured that forced the Newcastle United owner to drop the stadium from the terms of his agreement.
In return for the money - which will be paid to Rangers in two £5million tranches - Ashley will be able to nominate two more directors to the Light Blues board. His associates Derek Llambias and Barry Leach are already serving as chief executive and financial director.
As well as that, Rangers will transfer 26 per cent of its holding in Rangers Retail Ltd (RRL).
RRL was a joint venture set up by the club and Sports Direct, with Rangers in control of 51 per cent and Ashley's company controlling the rest. Fans, however, were already concerned that it was overly beneficial to Ashley.
Now as part of the new loan deal, the club has also agreed that from the 2017/8 season, for the duration of the loan, any future shirt sponsorship proceeds "will be for the benefit of RRL''.