Former Rangers director Dave King faces an inquiry by the Financial Conduct Authority after allegations were made that he tried to drive down the club’s share price.
The South Africa-based businessman is said to have urged supporters to withhold season ticket cash, according to a complaint made by a shareholder. There have been growing concerns about the League One team’s finances and governance.
Mr King, who has suggested a rights issue, said he was willing to be a “significant investor” but said he was not interested in buying existing shares in the operating company Rangers International Football Club plc. However, the board had made it clear it had no intention of dealing with the 58-year-old Glasgow-born entrepreneur.
Ibrox 1972 Ltd was set up by King and former player Richard Gough, as part of a campaign to withhold season ticket cash. The campaign had the intention of handing over season ticket cash once they have security over Ibrox Stadium. The club has condemned the strategy as it would deprive the club of revenue.
The FCA, which can impose fines, carry out a criminal investigation or hand the case to the Serious Fraud Office, told the complainant: “We will review the information you have provided very carefully with a view to determining whether it is appropriate to exercise any of our statutory powers in respect to market abuse.”