US financier launches Rangers takeover bid

The battle for control of Scottish football club Rangers

has intensified with confirmation of an approach from US businessman Robert Sarver.

Mr Sarver's approach comes amid a three-year struggle for control of AIM-listed Rangers International Football Club (RIFC) between Mike Ashley, the Sports Direct boss and owner of Newcastle United, and two groups of shareholders.

Rangers gave no details of the approach, beyond saying it might have been by a “vehicle to be established and controlled” by Mr Sarver and “may or may not lead to an offer”. “There can be no certainty that an offer will be made, nor as to the terms on which an offer may be made,” it said in a statement.

It is unclear how Mr Sarver, who owns the Phoenix Suns basketball team and is chief executive of New York-listed Western Alliance Bancorporation, would wrest control from Mr Ashley. The Sports Direct boss owns 8.9 per cent of the Glasgow club and late last year extended a £3 million loan to Rangers which gave him effective control.

The Scottish Football Association (SFA) has blocked Mr Ashley's attempt to increase his stake to 29.9 per cent on the grounds it would breach dual ownership rules. It has convened a tribunal on January 27th to investigate the matter. In November Mr Ashley secured the appointment of Derek Llambias, a former Newcastle managing director, to the Rangers board.

On December 19th Mr Ashley appointed Mr Llambias as Rangers' chief executive. Alexander Easdale, one of two other board members, is aligned with Mr Ashley.

Judicial panel

The SFA said there were no limits on the penalty that could be imposed if Mr Ashley was found to be in breach of the rules. “It’s up to the judicial panel to look at the situation and if they agree there has been a breach, it’s up to them to decide what the penalty should be.”

Mr Ashley could order Mr Llambias and Mr Easdale to resign, which would result in the suspension of the shares because David Somers, executive chairman, would be the only director. Rangers, relegated three divisions after going into administration in 2012, play in the Championship having won promotion in the past two seasons.

RIFC needs to raise more than £8 million by April for the club to stay afloat. – (2015 The Financial Times Limited)