New Ibrox share issue
Fans aim to raise ‘much-needed’ £2.5m for Rangers
Funding: Ibrox share issue (pic: SNS Group).
Rangers supporters group Club 1872 has pledged to assist the Ibrox outfit by raising £2.5 million by June through a new share issue.
The “much-needed” amount was agreed after funding talks between the group and the Rangers board.
The target will only be reached, however, with “thousands” more fans taking out membership in Club 1872, according to the organisation.
The fans group is the club’s sixth-largest shareholder with a stake of nearly 5% and it’s aiming to purchase former chairman and largest shareholder Dave King’s stake over the coming three years.
Rangers have asked Club 1872 for a first investment next month and the agreement with King will be put on hold until after June, the month the club have requested the funds to be provided by in full.
A Club 1872 statement said: “Club 1872 is now in a position to update members and the wider support on our plan to provide funding to RIFC in the first half of 2021.
“Following discussions with the RIFC board we can now confirm that a share issue will take place and that Club 1872 has been formally invited to participate at a pro rata level significantly higher than our current shareholding.
“Our aim, which has been agreed by the RIFC board, is to provide up to £2.5m to RIFC in return for shares at a price of 20p per share.
“If we are able to raise these funds, this will significantly raise our percentage shareholding in Rangers. It will also provide a much-needed cash injection to Rangers following the impact of Covid on club revenues over the past season.
“We have until June 2021 to raise these funds and RIFC have asked us to provide a first tranche to the club in March. It will only be possible for us to provide this level of funding to Rangers if thousands of additional supporters now join Club 1872 over the coming days, weeks and months.
“However, this is a huge opportunity not just to provide important funds to the club but also to ensure that supporters can protect Rangers forever from a repeat of the events of 2012.
“The only way to do that is to ensure that the supporters hold a significant shareholding in the club. Dave King has agreed to postpone his share purchase agreement with us until after these funds have been provided to RIFC. This agreement will resume after June 2021.”
£24m for former Rangers administrators
Taxpayers will pay more than £24m to settle a claim by two men wrongfully prosecuted during a fraud probe relating to the sale of Rangers.
Administrators David Whitehouse and Paul Clark settled out of court with the Crown Office in December.
The Crown Office and Procurator Fiscal Service (COPFS) has now confirmed recent reports that they were each awarded £10.5m damages. Legal costs will add at least £3m.
Scotland’s most senior law officer has said there was no evidence of criminal misconduct.
The Lord Advocate James Wolffe is expected to offer an apology to the two men next week when he delivers a statement on the case to MSPs in Holyrood.
Mr Whitehouse and Mr Clark were appointed administrators when the company that ran the Glasgow club went into administration in 2012.
COPFS has admitted acting maliciously in seeking to prosecute four men over the 2012 takeover while a fifth man is pursuing a similar claim.
Tory and Labour MSPs have called for an inquiry into the case.