Rangers shareholders vote against repaying Mike Ashley's £5m loan
Tuesday 16 June 2015 13:51, UK
Rangers shareholders have voted against Mike Ashley's request that the club immediately repay a £5m loan given through his Sports Direct company.
The result of two resolutions, which were voted on at a general meeting at Ibrox last Friday, were released by the Scottish Championship club on Monday.
Shareholders backed chairman Dave King's call to turn down Ashley's request with 53.6 per cent voting against paying the debt to MASH Holdings - the company through which Ashley holds his stakes in Newcastle and Sports Direct - and 46.4 per cent voting to pay.
On the second resolution, 62.5 per cent voted for Rangers to attempt to renegotiate a better retail deal with Sports Direct, 37.5 per cent voted against.
The decision means MASH has strengthened its grip at Ibrox as Sports Direct now has almost 80 per cent of the retail income as opposed to 51 per cent. MASH has control of the club’s Intellectual Properties, including crests and the name ‘Rangers’.
And as the loan has not been repaid Rangers will be unable to use Ibrox Stadium as security to raise any further finance.
MASH also has jurisdiction over the club’s training ground, the Albion car park which is required to open part of the stadium, and the Edmiston House building adjacent to the ground.
Ashley, who owns Barclays Premier League side Newcastle United, has an almost nine percent shareholding in the Scottish Championship site.
