THE new Rangers board has agreed a £10million loan deal with Mike Ashley’s Sports Direct company.
Without the injection of fresh funding, the Championship club would not have been able to cover wages due on Thursday.
The loan will be secured against Murray Park, Edmiston House, Albion Car Park – but not Ibrox Stadium.
Sports Direct will also receive 26% of the share capital in Rangers Retail Limited and the proceeds of future shirt sponsorship for loan’s duration.
The possibility of the stadium being used as security against the loan had caused widespread consternation among supporters in recent days.
In return for the money, Ashley will be able to nominate two directors to the board which currently consists of David Somers, James Easdale, Derek Llambias – the former managing director of Newcastle United – and former Head of Sports Direct Retail, Barry Leach.
Chairman Somers said: “The board has sought for some time to establish a long-term funding solution for the company in order to create a platform of stability to build for the future.
“This facility begins this process and we very much hope that it will be augmented with further permanent capital in due course.
“In addition, the executive team have made strides in addressing the cost base of the company in order to improve our financial condition and working capital profile.
“We very much hope that we can now move away from having to seek short-term funding solutions and can focus our efforts towards investing in the first team playing squad, a return to profitability and to re-establishing Rangers in the top league in Scottish football and in due course, to European competition.
“The board now calls upon all shareholders to rally together to achieve this goal.”
It is believed the loan is split into two parts. Firstly, a £5million segment which is available immediately for working capital and to also pay off outstanding loans.
The second part, which is due for repayment over five years, is for working capital.
Raith Rovers recently decided to sell tickets to the new club’s supporters directly rather than extend the Ibrox club credit facilities.
Celtic play their first ever match against the new club this weekend and in April 2012 the Celtic fans teased the away support at the last ever Old Firm match during a 3-0 victory, with taunts about the club’s forthcoming demise.
