David Murray rides out the storm as he takes Rangers off the market

Published on Tuesday 15 June 2010 23:36

SIR DAVID Murray last night took Rangers off the market and signalled his intention to extend his ownership of the club for at least another season.

• Sir David Murray: Staying put. Picture: Neil Hanna

Eight months after putting his controlling interest in the Scottish champions up for sale when the club's finances were ailing and external investment was required, Murray announced he has not received any offer for the club which he regards as acceptable.

It brings to an end any prospect of London property developer Andrew Ellis acquiring Rangers. The former Northampton Town chairman, through a specifically formed company RFC Holdings (Guernsey) Ltd, had declared his interest in buying out Murray's stake in the Ibrox club back in March.

Ellis entered a period of due diligence with a view to his 33million purchase of the Murray Group's shares in Rangers but his bid, which was constantly the object of widespread scepticism, was killed stone dead by the current owner's dramatic move last night.

Murray released a statement to the London Stock Exchange just before close of business last night which read: "On 26 October 2009, the principal shareholder of The Rangers Football Club plc (the "Club"), Murray International Holdings Limited ("MIH"), advised the board of directors of the Club that it was considering options regarding the controlling shareholding in the Club held by its subsidiary Murray MHL Limited. MIH also advised that this may or may not lead to it disposing of some or all of its majority stake in the Club to a third party.

"MIH has received interest in its controlling stake from a number of parties. At this time, however, the board of MIH has not been able to secure an offer which it considers to be in the best interests of the Club, its shareholders and its fans.

"Following on from the success of winning the 2009/10 SPL title and thereby securing participation in the group stages of the Champions League during 2010/11, the Club recently announced that the football management team had signed new contracts. At the same time the board of directors of the Club announced improvements in its financial position compared to the previous year stating: 'We believe the outcome of our recent positive discussions with the bank gives us a real platform for operational stability at the Club and we thank Lloyds for their support. We have a clear business plan in place and will continue to maximise efficiencies and endeavour to increase our non-playing income.'

"The board of directors of MIH therefore considers that the interests of stakeholders are presently best served by providing the football management team and board of directors with an opportunity to implement its business plan which is supported by Lloyds Banking Group. In these circumstances, MIH hereby announces that it is no longer actively marketing its controlling stake in the Club for sale."

Rangers, whose most recent annual accounts recorded a debt of 31million, have not purchased a player in the transfer market since August 2008 as they were forced to operate under strict restrictions imposed by Lloyds.

They also face a potential tax bill of 24million following an investigation by Her Majesty's Revenue and Customs into offshore payments to players.

However, recent negotiations with Lloyds, which involved manager Walter Smith and chief executive Martin Bain, reached an agreement which will see funds released to strengthen the squad for the start of next season.

The talks persuaded Smith to commit himself to a final year in charge of the team, after which his assistant Ally McCoist will succeed him as manager. Now Murray, who stood down as chairman in August last year to be replaced by Alastair Johnston, will extend his tenure of the club he purchased for 6million in November 1988.

Rangers have been Scottish champions in 15 of the 22 seasons they have been under Murray's ownership but have encountered financial problems as a consequence of spending policies in pursuit of European success which he later conceded had been wrong.

The 58-year-old Edinburgh businessman first hinted at a willingness to sell Rangers four years ago, but has consistently stated he will only relinquish control to someone who persuades him they are capable of taking the club forward. Now, with another Champions League group stage campaign beckoning, Murray's Rangers story is about to add another chapter.

Meanwhile, The Rangers Supporters Trust believe a takeover failed to materialise because Rangers – and Scottish football – is not regarded as a lucrative enough business proposition by potential buyers. RST spokesman David Edgar hopes last night's announcement will allow the club to bolster the squad ahead of the new campaign.

He said: "This constant speculation does nobody at the club any good.

"What we need to do now is just get our heads down and plan for the new season.

"Hopefully we will still be able to bring in a couple of players – I think the bank has seen the folly of running the club with the bare minimum. If we don't have the funds to compete, we won't bring in any money.

"In Scottish football you really have to be getting to that Champions League pot of gold and cutting the squad to the bare minimum is never likely to do that.

"The longer the prospective takeover by Andrew Ellis had been mooted without anything coming to fruition, the less chance there was of it happening.

"I think that this is a reflection on Scottish football. Sadly, it's just not a very attractive pitch to investors anymore. There is no money, really, to be made from Rangers and there is no money to be made from Scottish football."

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