Rangers: Dave King accused of ‘bogus’ bid

King fronted a consortium which failed to have their proposed investment in Rangers accepted. Picture: Robert Perry

South African-based businessman King fronted a consortium which failed to have their proposed £16 million investment in Rangers accepted by the current plc board.

David Somers, the plc board chairman, claimed on Tuesday that King had been unable to provide proof of funds for the offer and also declined to provide the identities of other members of his consortium.

Rangers also turned down another alternative funding offer of £3m from Sale Sharks owner Brian Kennedy, instead agreeing to a £2m credit facility from Newcastle United owner Mike Ashley which was increased by a further £1m last week. King responded to Somers’ comments on Tuesday, insisting they were “dishonest” and calling on Rangers supporters to “withhold their financial support for the current regime at matchdays and the retail outlets”.

A spokesman for King’s consortium also stated they had informed Easdale proof of funding and full disclosure of the consortium members would be provided following confirmation from the Greenock businessman that the shareholding he controls at Rangers – around 26 per cent – would not block the deal. But this was denied by Easdale, whose brother James is a plc board member at Rangers, as he hit out at King last night.

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“I feel it necessary to respond to the statement released by Mr Dave King yesterday,” said Easdale. “I am 100 per cent supportive of the stance taken by David Somers, our plc chairman. David had a legal and regulatory duty to determine the legitimacy of Mr King’s offer.

“For a bid to be rejected it has to be received first. I can only conclude that Mr King’s phantom bid was designed as a vehicle for self-promotion of some kind. Unfortunately, the consequences of his inaccurate and ill-advised statement serves further to destabilise the club and upsets the fan base at this very sensitive time.”

Brian Kennedy, meanwhile, last night issued his own response to Somers’ public explanation of why Ashley’s offer was accepted. “The CEO of Rangers PLC (Graham Wallace) approached me on the 22nd October 2014 asking whether I would be willing to provide a short term loan to RFC Ltd,” said Kennedy. “He informed me that he had been given a remit by RFC plc to negotiate terms and to report back to the board. My lawyers, DLA, proceeded to negotiate terms with RFC lawyers. After much discussion between the parties, the following terms were offered on Friday 24th October 2014.

“1. A £3m facility for a period of six months from the date of the drawdown. 2. A 3 per cent annual charge 3. Fixed security charge over Albion car park and Edmiston House 4. The Board of RFC would endeavour in the future to extend this to security over Murray Park as they were unable to grant such at this time.

“5. Ibrox Stadium to be protected in a Trust or a similar Legal mechanism that would allow this asset to be used solely for RFC in whatever legal entity to play football in perpetuity. 6. Paul Murray to be appointed to the plc main board for a period of 24 months.

“7. A lightweight floating charge over all assets except Ibrox Stadium. “8. No qualifying floating charge to be granted to any other party. 9. In the event of administration the lender would have the right to appoint the Administrator.

“I was informed by Mr Somers that the board had no objections to any of these terms. He later informed me that he had made the decision to go with Mr Ashley’s offer after consultation with the major shareholders.”

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