Over the weekend I have read a number of reports that an offer to buy Glasgow Rangers is imminent. The latest rumour surrounds the London property developer, Andrew Ellis who is expected to make a bid in the region of £33 million for control of the Scottish Champions.
I suspect that over the coming weeks and months a number of interested parties will start coming out of the woodwork and that the values being banded around will dwarf the £18 million that Dave King reportedly offered in January.
It’s believed that Rangers currently owe around £27 million to Lloyd’s Bank and that a bid of £33m would cover the bank debt, however David Murray would then have to accept only £6m or possibly less to cover his shares. The question is whether Murray would accept this offer? We all know that Murray is desperate to get rid of Rangers and I suspect hey would quickly accept anyoffer that came close to the price that he paid for the club in 1989. The same can be said of Lloyds who are reportedly seeking no less that £1 for every £1 of debt.
Rangers released an official statement on their website yesterday that seems to confirm this opinion: “THE Board of Directors of The Rangers Football Club plc (“Club”) is aware of the recent takeover speculation in the media and refers shareholders and supporters to a previous statement issued in October 2009.
The Club’s board has been advised by its principal shareholder, Murray International Holdings Limited (“MIH”), that it is considering options regarding its shareholding in the Club and this may or may not lead to MIH disposing of some or all of its stake in the Club to a third party.
The directors of the Club will keep shareholders advised of key developments but the Board is unable to comment further at this time.”
If you remove the PR waffle then the statement should read: “An offer has been made for Rangers F.C. that Murray International Holdings find acceptable however negotiations are continuing with Lloyd’s and the potential buyer regarding the payment of debt.”
It’s imperitive for the future of Glasgow Rangers and indeed Scottish football that a deal is concluded by the end of the season to avoid the threat of administration. Let’s see what happens in the coming days, weeks and possibly months and hope that a buyer with sufficient financial backing finally ends this saga for the Rangers fans.
