Derek Llambias backs Newcastle owner Mike Ashley's involvement with Rangers
Tuesday 28 October 2014 13:11, UK
Derek Llambias has assured Rangers fans that Mike Ashley's investment is positive for the club.
Ashley, who also owns Newcastle United, has effectively taken control of Rangers after the London Stock Exchange confirmed on Monday that his £2million emergency loan offer had been accepted by the Ibrox board.
One of the conditions of the loan was the resignation of chief executive Graham Wallace and former Newcastle managing director Llambias arrived at Ibrox on Tuesday morning for talks about the vacant role.
Llambias was giving little away when met by reporters at Glasgow airport on Monday night but backed Ashley’s involvement in the club.
“I’ve been invited up here for talks with the board - I’m one of many applicants,” he told Sky Sports News HQ.
“Mike Ashley has a great track record.”
Consolidate
Ashley has been given the backing of Rangers' institutional investors, most significantly by Sandy Easdale who controls 26% of shares.
The long-term retail and naming-rights contracts Ashley holds with Rangers have helped him consolidate a power base at the club. The SFA is expected to contact Rangers for clarification on Ashley's involvement at the club.
The association has an agreement that Ashley cannot own more than 10% of shares, nor can he have undue influence over boardroom matters. However, it is unclear whether the SFA would be able to act in any way if Ashley does not increase his personal shareholding.
Earlier this year, Ashley committed to remaining at Newcastle until at least the summer of 2016, but it is believed he sees Rangers as a viable and profitable asset, especially if the club returns to the Scottish Premiership and ultimately the Champions League.
Sky Sports News HQ reported on Friday that the club is thought to have a major funding shortfall, followed by the loss of around 15,000 season ticket holders and high staffing costs, which has left a huge financial hole.
And former Rangers director of football Gordon Smith has called for clarity over the circumstances of Ashley effectively taking control of the club.
Reports suggested Rangers were just 48 hours away from administration prior to the Sports Direct owner's offer being accepted but Smith believes a further cash injection will be required 'within months'.
Delicate
Speaking to Sky Sports News HQ the former SFA chief executive said: "Rangers are in a delicate situation financially and the £2m loan is short-term as the club do need a lot of money to run forward.
"So they are going to require more money quite soon, within a few months they will be looking for more money. So does Mike Ashley come back in then? Does he get a shareholding at that stage or does he take over control of the club without having to buy in that way.
"I think a lot of these things need to be answered. The people who have actually given him that control and brought him in need to tell the fans out there exactly what the situation is regarding the deal that has been set with Mike Ashley."
Rangers’ most recent interim accounts in March of this year showed losses of £3.5million for the final six months of 2013, with the same amount available in cash reserves.
