Loan keeps Rangers afloat as financial crisis threatens
Former Scottish champions Rangers were facing more financial upheaval on Monday after negotiating a loan to stay afloat while being approached by American financier Robert Sarver who is considering a potential takeover.
London: Former Scottish champions Rangers were facing more financial upheaval on Monday after negotiating a loan to stay afloat while being approached by American financier Robert Sarver who is considering a potential takeover.
The Glasgow-based club, whose 54 Scottish titles constitutes a world record for domestic championships, have climbed back to the second tier after being wound up and re-formed as a fourth-tier club in 2012.
The club`s board confirmed in a statement to the Stock Exchange that it had accepted an emergency loan of 500,000 pounds ($762,000) from its football chairman Sandy Easdale to remain afloat for another few days.
The latest crisis was triggered by a national insurance bill from the Revenue and Customs office, with the tax authority threatening to have the club placed in administration if the account was not settled immediately.
The club`s parent company Rangers International Football Club (RIFC) has also confirmed an 18 million-pound approach from Sarver who has been given until Feb. 2 to make a firm offer.
Two groups of fans have also made share purchases in the club since the owner of the Phoenix Suns basketball team made his approach.
The board are also considering a deal with Dave King -- a former Rangers director – and the Three Bears consortium comprising other wealthy backers.
The club said Easdale’s 500,000 loan would "be used by the Company for general working capital purposes over the next few days".
The statement continued that the loan had been offered and accepted "on a fee and interest free basis and it will be secured against the income from the sale of the player announced on 2 January 2015."
That player was central midfielder Lewis Macleod, 20, who was sold to English championship side Brentford for one million pounds.
Rangers will make a further announcement in response to the 52-year-old Sarver`s interest in due course.
"There can be no certainty that an offer will be made, nor as to the terms on which an offer may be made," they said.
Rangers, who played in the top tier in Scotland from the creation of the league in 1890 until their financial crash in 2012, comprise the "Auld Firm" with Glasgow arch-rivals Celtic, the other traditional major force in Scottish football.
They have since won two successive promotions and lie second in the championship, 13 points behind leaders Hearts.