Representatives of Rangers will hold informal talks with the Scottish FA today after the association issued charges against both the club and Mike Ashley relating to the Newcastle United owner's growing influence at Ibrox.
Under an agreement signed by Ashley, the Sports Direct tycoon cannot take on more than a 10 per cent shareholding or exert meaningful influence at Ibrox. Ashley’s stake remains at 8.92 per cent for now but he is widely regarded to be highly influential at the beleaguered Scottish club.
A hearing between the parties is scheduled for January 27th but Ashley’s Rangers prominence is likely to have increased even further by then.
Ashley already has a firm grip on commercial and merchandising rights at Rangers and is expected either to subsidise a share issue or provide loan funds to allow the club to continue trading.
The Ashley issue was raised at what proved an understandably stormy Rangers annual general meeting at Ibrox on Monday morning. Shareholders berated club directors from the moment of their arrival, with the Rangers chairman, David Somers, causing particularly acrimony with his contrary attitude towards questions from the audience.
Interest-free loan
Derek Llambias
, the former Newcastle managing director who has been appointed as the Rangers chief executive, was forced to deny he is on the payroll of any Ashley company. Somers was adamant that Ashley has insisted “Rangers must survive” and that the club is “fortunate” to be able to call on secured but interest-free loans from the tycoon, which total £3 million thus far.
Llambias received a lukewarm reaction after asking shareholders to judge him both on previous off-field work at Newcastle and how Rangers’ business affairs are conducted from now on.
“Not everything I do will be popular but everything I do will be in the club’s long-term interests,” Llambias insisted.
The chief executive warned, though, that Rangers must continue to cut costs.
Addressing the issue of onerous contracts, which have proved a drain on Rangers’ resources, Somers claimed: “With a number of contracts we’ve just said, ‘sod you, we will see you in court’.”
The notion that Kenny McDowall will prove only a stop-gap football management solution was apparently dismissed.
Likely replacement
McDowall has stepped up to replace Ally McCoist, who has been placed on gardening leave.
Billy Davies
is regarded as McCoist’s most likely replacement but the club appears willing to stick with McDowall until the summer at least.
“Kenny has our full support,” said Llambias. “He is in charge until the end of the season and perhaps beyond.”
Llambias also told the meeting he wants to see the club restored to their former place at the top of the Scottish game.
“We need financial stability off the pitch and great football on it,” he said. “We want to get Rangers back into the top flight and the Champions League.
“That is our aim and hopefully next year I will give a much better speech.”
But the club will have to overcome a number of off-field obstacles before they can even think about challenging Celtic for domestic dominance. Rangers need to raise £8.3 million (€10.4 million) before April 1 if they are to avoid another crisis.
However, a resolution which would have given the club the power to issue new shares without first offering them to existing stakeholders was defeated at the AGM — a blow which the board admits will “limit its options for future funding”. Guardian Service
