News this morning that Newcastle owner Mike Ashley has said he will not be participating in the open offer of 20M new shares available to existing shareholders from Rangers.
Mike Ashley – not increasing his share in Rangers
Mike Ashley currently owns around 9% of Rangers and it had been thought that he could be increasing his investment in the iconic Scottish football club, although he would need to get special permission from the Scottish FA to do that.
Ashley has issued a statement this morning to the London Stock Exchange:
“I will not be participating in the Open Offer which closes at 11am today, Friday, September 12, 2014.”
The open offer of almost 20M new shares to existing shareholders opened at the end of August, and the goal of the offer is to raise money for Rangers, who are again in some financial difficulties, but a previous attempt to raise money of £10M from city investors was unsuccessful.
Rangers are trying to raise money “in order to meet working capital requirements”, and they are looking for between £20M and £30M over the next three years, and will consider other ways of raising money such as lines of credit or short-term finance, if this offer is not successful in raising the necessary finances.
We never thought that Ashley would sell Newcastle to buy Rangers, and that seems to be what’s happening, although Mike has already invested almost as much as he can in Rangers, while still being the owner of another football club – Newcastle United.
This further supports the view – expressed yesterday by manager Alan Pardew in his press conference – that Mike Ashley has no plans at all to sell Newcastle United.
Mike has done very well at Newcastle in financial terms, especially over the last three years or so, and the finances at Newcastle have improved dramatically in that time.
But what frustrates Newcastle fans is that not enough money is being invested to build a team that can challenge again for a top six position in the Premier League.
If Mike would start doing that and promise to invest all profits back into the club, it would (definitely) be possible for Newcastle United to compete again with the top clubs in England and in Europe too.
That’s what most fans want to see.
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