New banking deal for club
Rangers ‘agrees’ credit facility with Close Brothers
Dave King: first facility since Murray’s ownership (pic: SNS Group)
Rangers Football Club has secured an overdraft facility for the first time since David Murray was owner of the Ibrox club, according to sources.
Chairman Dave King are understood to have reached a deal with investment bank Close Brothers to provide up to £3 million in funds.
It will be the first credit facility since Sir Davi Murray sold Rangers to Craig Whyte in 2011.
Mr King has previously admitted that soft loans from directors were required to keep everything running.
The new lending facility arrangement should give the board greater financial flexibility.
Rangers managing director Stewart Robertson said the deal is a sign of the growing stability of the cub’s balance sheet.
The club has an annual turnover of £30m and is expected to launch a share issue this year.
Mr Robertson said: “We need to get to the position where we’re a self sustaining football club. That has always been the target. We can’t keep going back to the well.
“A £30m business with no bank facilities is very, very unusual. It’s another step and it’s about doing it within the realms of financial prudence.”
The overdraft will be secured against Edmiston House and the Albion car park and is in addition to the £7 million King promised auditors he’d underwrite for any losses in the current financial year.
Mr King is currently in talks with the Takeover Panel after it ordered him to make an offer of 20p a share to all shareholders. The order followed a panel ruling that he acted in concert with three other investors when seizing control of the club three years ago.
The issue needs to be resolved before Rangers can launch a new share issue.