Ibrox boost after Ashley obstacle is taken away
DAVE KING believes Rangers are ready to reach ‘the top of Scottish and European football’ after the last obstacle to a new shares issue was removed. In a move first revealed by
Sportsmail, Mike Ashley’s MASH Holdings company confirmed yesterday that they have sold the Newcastle United owner’s 8.92-per-cent stake in the Ibrox club for £2million. Fans’ ownership group Club 1872 snapped up half of Ashley’s stake, taking their total shareholding to over ten per cent of the club. The other half has gone to Julian Juul Wolhardt, a private equity investor with particular expertise in China but no obvious link to either Rangers or Scotland. Together, the supporters’ consortium and Wolhardt have ended Sports Direct owner Ashley’s tortuous and often obstructive involvement at Ibrox. In another twist, however, a spokesman for former directors James and Sandy Easdale claimed yesterday that the deal went through only after the brothers rejected an invitation from
Ashley to increase their own holding in the club.
Ashley’s decision to sell, linked to the renegotiation of the ruinous retail deal that left Rangers making pennies for every jersey sold, removes the final obstacle to the Ibrox board launching a new shares issue that could raise significant funds.
Fresh from declaring that Celtic had wasted four years and failed to create a significant gulf between them and their rivals, King was in no mood for back-tracking yesterday and set his sights on domestic and European glory.
‘This is the partnership I want to see lead Rangers forward,’ said the Ibrox chairman. ‘Rangers run by those who care for it most, not what has been dismissively described by some as “fans with calculators” — but a mature and structured organisation which can galvanise and represent our supporters and use their skills and talents to drive our club back to the top of Scottish and European football.’
If the involvement of Club 1872 makes perfect sense, the investment by Wolhardt — described by Rangers as ‘CEO of Dehong Capital Partners (DCP), a Hong Kong based private equity firm’ — is a less obvious move.
Wolhardt has never been involved at board level in any sporting team, the University of Illinois graduate having specialised in private investment in China, working for a number of firms including Morgan Stanley.
But King welcomed his decision to buy into Rangers.
Wolhardt, who serves on the boards of a number of firms listed in China, insisted: ‘I have a longheld love for Scotland and football and I am keen to see Rangers FC unlock its considerable commercial potential.
‘With the successful restructuring of the retail operations, RIFC is now on a firm financial footing and I look forward to being a part of its exciting future.’
A spokesperson for Club 1872 said: ‘We are delighted that our members’ support for Club 1872 has brought us to a point where we can acquire those shares and complete the process of restoring control of RIFC to those who view the footballing success of Rangers FC as being just as important as RIFC’s careful stewardship financially.’
The most obvious effect of the yesterday’s deal will be to clear the path for a new shares issue — without having to offer stock to existing shareholders first.
Having fallen short of the 75-percent threshold by just half a per cent when shareholders voted on the issue last November, the Rangers board will again seek permission to open the club up to new investment by current directors and other interested parties — ending the cycle of board members providing funding via ‘soft loans’ to the club.
King and the Three Bears consortium running the club have been opposed to any move that would allow the Easdales to increase their stake.
Yet Jack Irvine, executive chairman of Media House International Ltd, said his clients had been given first refusal by Ashley.
Irvine said: ‘The Easdales were offered the shares by Mike but they felt that they were happy to see the fans getting them and, anyway, they have several much larger deals in the pipeline.’