Mike Ashley his tightened his grip on Rangers after the club agreed to accept his offer of a £10m loan. They turned down an alternative offer from the so-called Three Bears Consortium.
The club told the Stock Exchange that the terms negotiated with Sports Direct ‘represent the optimum combination of quantum and duration of funding, allowing the company time to arrange permanent capital which can be used for strengthening the playing squad.’
Mike Ashley his tightened his grip on Rangers after the club agreed to accept his offer of a £10m loan. They turned down an alternative offer from the so-called Three Bears Consortium.
The club told the Stock Exchange that the terms negotiated with Sports Direct ‘represent the optimum combination of quantum and duration of funding, allowing the company time to arrange permanent capital which can be used for strengthening the playing squad.’
Ibrox is not being used security for the loan, as Mr Ashley had requested, a proposal that particularly upset the club’s fans. However, he has won a series of conditions that effectively tie the club’s future to him. Half of the £10m is being secured by a floating charge over the club’s assets and fixed charges other properties, including its training ground, car park and trademarks.
Rangers is transferring 26 per cent of its retail business (a joint venture with Mr Ashley) for the duration of the first tranche of the loan. The retail business is declaring a dividend of £1.6m to repay sums owed to Sports Direct to close leases on unprofitable retail stores.
The disciplinary hearing into whether Mr Ashley exerts undue influence and control over the club in breach of dual ownership regulations has been delayed. A hearing was scheduled for Monday.