Rangers takeover: Brian Kennedy and Blue Knights join forces

• Rangers administrators had previously extended the deadline for bids

• Ticketus have withdrawn their support for the Blue Knights bid over SFA sanctions

• Only other remaining contender is US businessman Bill Miller

The move came after London firm Ticketus withdrew from their agreement to be part of Murray’s Blue Knights consortium.

Kennedy, the Edinburgh-born owner of Sale Sharks rugby club, had previously been prepared to bid alone for Rangers, but his desire to ensure the club avoid going into liquidation has impelled him to join forces with Murray.

“I’ve always stood behind the Blue Knights and said I would not bid against them,” Kennedy told The Scotsman. “The Blue Knights needed some financial help and that’s what I’ve assisted them with.”

Murray and Kennedy have yet to reveal the size of their offer, but it is thought at least to equal Miller’s £11.2 million bid. Murray and the other members of the consortium were about £1m short of Miller’s offer before Kennedy came on board, and the rugby-club owner has substantial resources to throw into the project.

“This offer we consider to be substantial,” a statement from Murray and Kennedy said. “[It] is conditional on a CVA being approved by the creditors, and Mr [Craig] Whyte’s shares being acquired. We hope this is accepted so that we may proceed with due diligence forthwith and make a start to the task of re-building Rangers Football Club of 1872.”

Administrators to weigh up offers

It is now up to Duff & Phelps, who have been in charge at Ibrox since Whyte put the club into administration in February, to assess the merits of the two rival offers. American businessman Miller’s proposed route out of administration is more complex than the CVA option favoured by Murray and Kennedy.

David Whitehouse, joint administrator, said in a statement last night: “We can confirm this afternoon that we are in receipt of two formal bids for control of Rangers Football Club. Both bids at this stage remain conditional.

“We are in receipt of a bid from Bill Miller whose bid is conditional on securing greater comfort and clarity from the football authorities in relation to sanctions against Rangers. Clearly, the events of last Monday night when the SFA’s judicial panel imposed severe and, in our view, unwarranted penalties on the club had a destabilising effect on the sale process.

“However, since then, Mr Miller’s bid team have worked to develop a structure which enables the wishes of creditors to be taken into account whilst ensuring that the club is taken forward well-capitalised and the requirements of the footballing authorities are met. Mr Miller hopes a solution to all regulatory issues can be found and his team has been in constructive discussions with all relevant parties this week.

“This afternoon Brian Kennedy and Paul Murray submitted a bid which is conditional on a CVA being approved by creditors and we will seek guidance from prominent creditors. It is also conditional on the acquisition of the shares of Craig Whyte in the football club and we have asked for this and other points in the bid to be clarified.

“What should be clarified is that neither bid involves liquidation of the football club.”

Murray was close to being named by Duff & Phelps as preferred bidder earlier this month, but could not reach agreement with Ticketus over a £500,000 non-refundable deposit demanded by the administrators as a precondition. Ticketus subsequently reached a new agreement to join the Blue Knights group, but yesterday announced that they had withdrawn.

Despite withdrawal from Murray’s group, Ticketus could still play an important role in determining the future of Rangers, as they are owed £26.7m by the club from season-ticket sales over the next three years. Ticketus believe they have guarantees against assets owned by Whyte, and the surrender of his shares to them could count towards meeting that guarantee. In addition to that, if there is no change in their status as major creditors, Ticketus’s agreement would be an essential part of a CVA.

Miller would retain assets but not debt

Miller takes a different approach to the Blue Knights, having apparently decided that Ticketus, like Whyte, are part of the problem rather than being an element of the solution. He wants to carve out both the firm and the individual by means of a complicated arrangement that would separate Rangers as an ongoing entity from their current liabilities.

Under Miller’s scheme, his new company would retain the assets but not the debts of the club. The administrators would then deal with those debts by means of a CVA, after which the two separate parts of Rangers would be reunited.

There are also two other outstanding factors that could complicate matters for either party hoping to take over Rangers. The tax tribunal held in January has yet to announce its verdict, but could land Rangers with a bill for up to £75m. And the SPL meets on Monday to vote on proposed financial reforms that could mean further punishment for the Ibrox club.