Rangers ponder share issue over season ticket woes

Rangers are keen to avoid sinking into another financial crisis. Picture: John Devlin
Rangers are keen to avoid sinking into another financial crisis. Picture: John Devlin
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RANGERS chiefs are exploring the possibility of another share issue, as the club’s bosses fret over the lack of season ticket sales.

James and Sandy Easdale flew to London on Monday for urgent talks on the Ibrox club’s financial state, after thousands of fans refused to renew their season tickets.

The Daily Record are reporting that the Ibrox regime could launch a new share issue in a bid to raise up to £8 million.

Rangers are in desperate need of a cash injection in order to avoid sinking into a dangerous financial situation, and it is believed that a new issue with up to 40 million new shares could be sold to hand-picked investors from current Ibrox shareholders.

The Easdales reportedly met with shareholders Blue Pitch Holdings and Margarita Holdings in London, with the possibility of both planning to increase their holding in the club.

Hedge fund firm Laxey Partners may also be asked to buy up new shares in return for a larger percentage of the club.

However, the club’s losses since raising £22 million of investment at an IPO around 18 months ago could discourage the majority of the club’s shareholders from giving more money to the club.

The share price has also plummeted in the same timeframe, knocking millions of the club’s value.

A source told the Daily Record: “A lot of serious decisions will have to be taken.

“The board may see the release of shares as the easiest way to raise substantial sums of money but it remains to be seen which shareholders, if any, will be willing to pump millions into a business that’s performed so badly over the last year and half.”