Dave King demands David Murray hand back his £20m in finance dispute

SIR David Murray has vowed to vigorously defend himself against former Ibrox director Dave King’s threat to pursue him for £20 million for not fully disclosing Rangers’ financial position 12 years ago.

King, who invested £20 million in the Ibrox club in 2000, revealed he has made a claim for the same sum on the basis of non-disclosure by the then chairman, who recently came under fire from another former director, Hugh Adam, for allegedly issuing secret “second” contracts to players.

King did not specify what information he believed had been kept from him. However, he describes himself as feeling “deceived” – and invites other shareholders to take a similar course of action in the courts. “David Murray will no doubt argue to the contrary and the merits of this will be dealt with in due course in the appropriate forum,” he stated.

A spokesperson for the Murray Group confirmed that evidence of King’s action had not yet been received, but “in the event that he [King] actually lodges a claim, we would vigorously defend it”.

The spokesperson pointed out that King, who is currently the subject of a long-running investigation into his own tax affairs in South Africa, was privy to the financial details of the club throughout the period of his directorship.

King, who is based in South Africa, was back in Scotland a fortnight ago and met with representatives from Rangers’ administrators, Duff and Phelps. Both he and fellow non-executive director Paul Murray proposed an alternative £25m buy-out of the club in May, just prior to Craig Whyte’s ill-fated takeover.

King has pledged to reinvest “any benefit” he receives from his claim against David Murray in a “restructured” Rangers, on the proviso that he passes the Scottish Football Association’s “fit and proper” person’s test – and that he wins the case.

King visited Murray’s offices in Edinburgh on 23 February in order to elicit more information on Whyte’s buy-out, and met with Murray Group director Mike McGill. However, he deliberately avoided Murray himself and has not spoken to the former Rangers owner since May last year.

However, King has begun proceedings which could see him cross paths with Murray again, in court. A statement released yesterday afternoon by the Murray Group rejected King’s claim that he was not fully briefed on all aspects of the club’s finances.

“We note with some interest, and much incredulity, Dave King’s press statement,” it said.

“It is difficult to understand his motives, given he has been a director of Rangers Football Club since the year 2000.

“Throughout the period of his directorship, Dave King has attended and participated in regular board meetings, including those approving the annual audited accounts, received board papers quarterly, had full access to the executive management of the club and been privy to the same detailed financial and commercial information as every other board member,” said the spokesperson.

“In the event that he actually lodges a claim, we would vigorously defend it.”

King, who was the only director from the previous regime still on the board when the club went into administration last month, also stated his belief that Rangers will not be able to come through administration and that liquidation was “inevitable.”