Rangers administration: Prospective buyers play waiting game

PROSPECTIVE takeover bids for Rangers have been placed in limbo until the club’s administrators are able to establish the full extent of the financial liabilities incurred under Craig Whyte’s ownership.

Hopes of a rapid exit from administration, predicted by the discredited Whyte when Rangers first entered it on 14 February, have diminished in the wake of damning revelations about his nine months in charge.

The “Blue Knights” consortium being formed by former Rangers director Paul Murray remain determined to wrest the club away from Whyte’s control, while millionaire businessman Brian Kennedy has also registered his possible interest with administrators Duff and Phelps.

But both Murray and Kennedy cannot be in a position to make a formal bid for Rangers until the administration process provides greater clarity on the level of financial rescue package required by the Ibrox club.

The administrators are widely expected to make an announcement this week, possibly today, on further job losses following the redundancies of Director of Football Gordon Smith and Chief Operating Officer Ali Russell last Thursday.

Chartered accountant Murray, who served on the Rangers board as a non-executive director from 2007 until he was removed following Whyte’s takeover last May, is continuing his efforts this week to finalise the members of his consortium and the size of financial muscle at their disposal.

The Scotsman understands that South African-based businessman Dave King, still a non-executive director of Rangers, and Park’s Motor Group owner Douglas Park are both likely to be part of the Blue Knights’ bid. Kennedy, the Edinburgh-born owner of Sale Sharks rugby club, has expressed his approval of the Murray-led consortium but insists he would be only pursue purchasing Rangers in his own right. Murray, however, is believed to be keen to hold talks with Kennedy to try to establish potential common ground in their interest in the club. Murray has made it clear he is keen to widen the scope of his consortium as much as possible.

Kennedy, a former SRU non-executive director who was previously linked with a bid to buy Hibs in 1998, confirmed his formal contact with Duff and Phelps but stressed the obstacles which still remain before any interested party can attempt a takeover. “I’ve had a meeting with the administrators,” said Kennedy. “But they have to work out exactly what the position is before they can talk to anybody in earnest.

“Ideally, a consortium will be put together to buy Rangers. I would not be interested in joining a consortium because it’s not the way I work. But that might be best for Rangers if it came off. The Blue Knights seem to be a good bunch of guys and, if they can get the funding to save Rangers, then good luck to them. I am not competing with them. I would stand back if they showed they were the best option for Rangers. But, if they are not able to do so, then that is possibly where we might have an interest. As always, there is an ‘if’ in there.”

Kennedy’s interest has been welcomed by the Rangers Supporters Trust but they maintain their position of seeking to ensure that no single individual should again control a majority of the shares in the club.

“We have written to Mr Kennedy and look forward to hearing his thoughts about Rangers,” said Trust spokesman Mark Dingwall. “His track record at Sale Sharks is impressive. He is a successful and respected businessman. Our first preference is still that everyone with finance and an interest in Rangers comes together at this time. We believe the club’s problems require everyone to work together.”