Mike Ashley has assumed control of Glasgow Rangers, with a six month £2M loan deal being accepted, and Rangers this morning confirmed that CEO Graham Wallace had resigned with immediate effect, and that follows the departure of Finance Director Philip Nash, who resigned on Friday.
Mike Ashley on left – after Newcastle’s 2-1 win yesterday
Those were the two Directors Mike Ashley wanted off the Board, and he will now be able to place two Directors of his own choosing on the Rangers Board, as part of the overall agreement for the loan.
The (very) famous Scottish club has started the search for a CEO replacement, and issued this statement today:
“The directors would like to thank Graham for his contribution to the Club during a difficult period,”
The loan from Ashley is an interest free loan – much like the £129M loan he has with Newcastle United, the club he owns outright.
Ashley has a 8.92% stake in Rangers at the moment, and had recently called for a shareholder vote, to vote on the removal of Mr Wallace and Mr Nash.
This moved is basically a turnaround for the club, which had previously said it was sticking with its current executive team.
It’s strange how money can change things around.
It is thought the £2M loan is enough to see Rangers financially through to the end of this year, as the club climbs back to the Scottish Premier League, where it belongs – to fight Celtic for the Scottish title.
Rangers had gone into administration, and in the summer of 2012 they were demoted to division three of the Scottish League – and they have been fighting their way back to the Scottish Premier League ever since.
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