Former Rangers chairman Dave King details £5m loan and interest repayment and 'no impact' on club accounts
While announcing figures to June 2021, Rangers summarised a seven-figure loan, plus £832,000 interest, had been repaid to Mr King since that accounting period ended and replaced by ‘a long term, lower coupon structured facility’ to support their aim to ‘strengthen our capital and funding structure’.
Interest on the loan, with Mr King’s family-trust company Laird which is listed among the accounts, was required by South African authorities and agreed when he stepped down as chairman two years ago, and it was only recently repaid, Mr King said.
He explained: "When seeking approval from the SA authorities, the club worked with my accountant in SA to provide all the financial information required to support such a loan and the RIFC Board authorised it on terms ultimately approved by the SA authorities.
"At the AGM in 2019, I expressed regret that the authorities would not allow this much needed loan to be made without attracting a market-related interest rate but was pleased that it was granted on an unsecured basis.”
Mr King explained how interest or security for loans went against undertakings at time of his regime change and added: “The hardened position of the SA authorities to investment in the club reinforced my decision to step down.
“I had achieved my personal objective of removing the club from its state of crisis and it had become in the best interest of the club to be guided by individuals in the UK who, I thought, were capable of taking the club forward in a normalised manner (covid had not yet happened) and who were willing and able to continue to provide any funds that might be required on an unsecured and interest free basis – honouring the commitment we collectively made to supporters and shareholders.
"At the club’s request, the Laird loan that I disclosed was only payable after two years and, indeed, was repaid to Laird little more than a week ago.
"The payment, including agreed interest, had been recognised in all cash forecasting and consequently had no impact whatsoever on the club’s anticipated financial position."