Mike Ashley has been blocked from appointing Directors to the new look Rangers board.
In a surprise move, three of those now in control at Ibrox have loaned the club £1.5m interest free to keep the club afloat whilst they attempt to arrange larger scale finance for the long-term.
“The company is pleased to announce that it has entered into loan agreements with Douglas Park, George Letham and George Taylor for facilities totalling £1.5m.
“The proceeds of the loans are available generally for the purposes of the company and will be used for working capital.
“The loans are being made available until 31 December 2015 which will provide the company with time to deliver a longer term funding solution. No interest or fees are to be charged in respect of the facilities and the loans are being provided on an unsecured basis.
“The company also announces that it has ceased the process of satisfying the conditions for drawdown of the second tranche of the facility announced on 27 January 2015 with SportsDirect.com Retail Limited and associated companies.”
In announcing the new deal, Rangers have confirmed that they are not taking the second half of the £10m loan deal from Mike Ashley via Sports Direct.
This means the Newcastle owner will not have the right to appoint Derek Llambias or any other allies back onto the Rangers board, one of the terms of the second £5m being that Ashley could appoint two directors.
Ironically, only this morning there were quotes from Ashley ally and former Chief Executive Charles Green taunting the new board, saying he wouldn’t mind being one of Mike Ashley’s appointees on the Rangers board.
It looks like a big gamble from those now in charge, as the finances of Scottish football have severe limitations.
The Rangers total turnover was only £25m last season and half of that was from gate receipts and matchday hospitality, which included £7.7m raised through 36,000 season tickets being sold.
Broadcasting revenue was only a shade over £1m and even in the Scottish Premier League it isn’t much more, no comparison to the extra tens of millions pouring into Mike Ashley’s pockets at Newcastle.
Many Rangers fans no doubt will be celebrating this latest news even though it looks like tough times ahead.
Meanwhile at Newcastle the supporters wonder what Mike Ashley’s intentions are this summer in terms of rebuilding the squad, the coaching staff and the non-football side of the business.
The acute difference to the situation at Rangers is that at Newcastle there isn’t any shortage of revenue coming into the club, the only problem being whether Mike Ashley is willing to allow enough of it to be spent to allow Newcastle to compete, or at the very least avoid total disaster via relegation.