Rangers fans explore club takeover proposal but figures look daunting

It emerged yesterday that the Trust is working on an exploratory document to investigate the possibility of a takeover funded by fans.

The Trust would not confirm whether entrepreneur Jim McColl is involved in the scheme following reports the Trust had held talks with the businessman who has an estimated fortune of 800million.

A wealthy individual is required to underwrite the scheme, which is based on the optimistic plan of 20,000 Rangers fans contributing 1,500 each over a five-year period.

Trust spokesman David Edgar said: "At this point, it's an exploratory document only. We can't comment on speculation over any names mentioned with regard to underwriting or backing the scheme.

"And we stress that all discussions must remain private and are at a very early stage."

Describing talks both with the club and potential backers as "positive", Edgar insisted it was "too early to say" whether the RST proposal would ultimately end in a takeover bid.

"Rangers find themselves in extraordinary circumstances and, at the moment, it's pertinent to assess all options," he added.

"Anything the Trust does, we study to make sure it's viable before we go down that path."

London-based property tycoon Andrew Ellis was earlier this month revealed to be considering a bid for Rangers.

Edgar insisted Ellis' interest had no effect on the Trust's plans, adding: "At the moment, discussions are ongoing with all parties who would be involved with the scheme.

"This is another step towards what the trust has been working on and continues to work towards, which is full supporter ownership. It hasn't come about overnight."

However, the Trust's estimate of a 30m-31m one-off investment to buy the share capital is an assumed price that Murray would sell for, which effectively covers the club's debt and values the current owner's interest as negligible.

The plan also involves injecting 10m to secure the contracts of existing staff and year-on-year investments of 8m-10m, making it an extraordinarily ambitious vision. It is expected that the plan would be subject to intense scrutiny from Murray's independent committee of the board.

A statement from the club earlier this month said: "It is particularly important to the independent directors that any possible offeror is able to demonstrate the capacity and commitment to provide a stable and sustainable future for RFC, and the independent directors will want to understand fully the plans of any potential offeror in order to recommend the action that shareholders should take."

With the Trust's plan based on the commitment of 20,000 supporters, the independent committee is likely to take a lot of convincing that the plan is sustainable over the long-term. What Murray wants to avoid is a buyer who can afford the purchase but then cannot invest in the club itself. He has said regularly that he will only sell to a party which can demonstrate that they are able to sustain the club.

Last year saw the RST invite representatives of Espanyol and Hamburg to Ibrox to discuss their members-run models. A fan-led buy-out was proposed at Hearts during the Chris Robinson era, but the required funding could not be raised.

Rangers have been working to a business plan in conjunction with Lloyds Banking Group since Murray stepped down as chairman in August.

The influence of Lloyds has sparked protests from supporters at some matches this season.

Manager Walter Smith and his backroom staff have been working without contracts since January in a bid to ease the financial pressure on the club.