New Rangers share issue ‘inevitable’ - Dave King
FORMER Ibrox director Dave King believes a new share issue at Rangers is inevitable, if the club is to avoid savage cuts.
King yesterday appealed to the Rangers board to keep spending on the squad so the club could challenge Celtic on its return to the top flight, and the South Africa-based businessman is set to front a new round of funding via a fresh share offer.
The £22.7 million raised by a previous share issue has trickled away, with Rangers chief executive Graham Wallace scrutinising the Ibrox accounts in a bid to cut costs. The first-team squad last week rejected a 15 per cent wage cut, although Ally McCoist has reduced his salary.
King met with shareholder and board member Sandy Easdale in November of last year in a bid to arrange an agreement allowing him to invest in the club once again and assume the role of chairman of Rangers International Football Club, but the talks ultimately led to nothing.
Former Weir Group employee King’s warning to fans was that ‘cost-cutting is not going to help’ when the club make it back to Scottish football’s top flight.
He added: “How often can you say to the fans ‘Trust us and give us your money’?
“What the board are saying to the fans is: ‘We’re not putting more money in but we want you to pay yours up front.’ All in the full knowledge that, if they don’t get new funds in, that season-ticket money might not be enough to last a full season.
“And if it is enough, then that’s only because they have had to cut the club back completely.
“And then they run the risk of not even getting into the SPFL Premiership at the first time of asking.
“We have to be in a position to go up to the Premiership and we have to be in the position to launch a challenge to Celtic. We cannot risk going to Celtic Park and being battered 6-0. We can’t start losing 3-1 to Hibs and Aberdeen and accepting it.
“If the CEO has no money, he has no choice but to cut wages and costs any way he can,” said King.
But the businessman warned: “But then Rangers are going to be a small club.”