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Mike Ashley’s arrival at Rangers might bring both protests and profit Mike Ashley’s arrival at Rangers might bring both protests and profit
(about 3 hours later)
Rangers fans may be angry about the increasing prominence of Mike Ashley as a dealmaker at their club but it may prove mutually beneficial if he stems the epic level of cash-burn at a business which recently went through £70m in roughly two seasons. The concern of those in the stands is that the benefit is solely for Ashley himself.Rangers fans may be angry about the increasing prominence of Mike Ashley as a dealmaker at their club but it may prove mutually beneficial if he stems the epic level of cash-burn at a business which recently went through £70m in roughly two seasons. The concern of those in the stands is that the benefit is solely for Ashley himself.
Ashley was a notable figure in the Rangers saga long before the weekend moves which saw him grab power in all but name. The Newcastle United owner bought naming rights – as yet unused – at Ibrox for just £1 in 2012. He has a contract which ensures he pockets 49% of income from every Rangers merchandising sale, with an option in place for the remainder. Ashley was a notable figure in the Rangers saga long before the weekend moves which saw him grab power in all but name. The Newcastle United owner bought naming rights – as yet unused – at Ibrox for £1 in 2012. He has a contract which ensures he pockets 49% of income from every Rangers merchandising sale, with an option in place for the remainder.
That entire retail operation, thought to have a turnover of close to £4m, is controlled by an Ashley business: Sports Direct holds the contracts of club store employees. He has previously shown an interest in ownership of the Rangers badge as a commercial entity in itself.That entire retail operation, thought to have a turnover of close to £4m, is controlled by an Ashley business: Sports Direct holds the contracts of club store employees. He has previously shown an interest in ownership of the Rangers badge as a commercial entity in itself.
With that background it is understandable that Ashley wants Rangers to keep trading. He had pointed out at a Sports Direct AGM that his involvement at clubs north and south of the border was “beneficial to Sports Direct and therefore its shareholders”. In short, he has interests to protect in Scotland. With that background it is understandable that Ashley wants Rangers to keep trading. He had pointed out at a Sports Direct AGM that his involvement at clubs north and south of the border was “beneficial to Sports Direct and therefore its shareholders”. In short he has interests to protect in Scotland.
That may well be the entire picture. It is certainly one Ashley’s many detractors point towards. But as with everything involving the tycoon, nobody truly knows. What can be asserted is that he will have a plan, though the insistence that bad news beckons for Rangers is not necessarily valid.That may well be the entire picture. It is certainly one Ashley’s many detractors point towards. But as with everything involving the tycoon, nobody truly knows. What can be asserted is that he will have a plan, though the insistence that bad news beckons for Rangers is not necessarily valid.
Derek Llambias has already travelled north to advise the Rangers board; Ashley is thought to be able to appoint two directors of his own. It will not take Llambias long to work out one thing: that Rangers are still spending far too much money. Annual losses run into several million pounds, which means around £10m will need to be sourced between now and the end of the season alone. Derek Llambias has already travelled north to advise the Rangers board; Ashley is thought to be able to appoint two directors of his own. It will not take Llambias long to work out one thing: that Rangers are still spending far too much. Annual losses run into several million pounds, which means around £10m will need to be sourced between now and the end of the season alone.
Ashley could launch and underwrite a share issue with that in mind; he will need to convince the Scottish FA of the validity of his owning more than 10% of Rangers – he is currently at just short of 9% – alongside his stake in Newcastle United. That would probably not be much of a problem when push comes to shove.Ashley could launch and underwrite a share issue with that in mind; he will need to convince the Scottish FA of the validity of his owning more than 10% of Rangers – he is currently at just short of 9% – alongside his stake in Newcastle United. That would probably not be much of a problem when push comes to shove.
There is a dream scenario for Rangers and their long-suffering followers: that Ashley takes a relatively small punt on propelling the club back to the forefront of Scottish football and into Europe. Rangers are one British club who should actually be profitable given their level of backing and the fact there is no actual necessity for a huge cost base in order to succeed in their football environment. There is a dream scenario for Rangers and their long-suffering followers: that Ashley takes a relatively small punt on propelling the club back to the forefront of Scottish football and into Europe. Rangers are one British club who should actually be profitable given their level of backing and the fact there is no necessity for a huge cost base in order to succeed in their football environment.
The giving up of Newcastle, which Ashley has insisted will not happen until the end of next season at least, would seem pivotal to any grander Rangers plan. The Scottish club have a bigger global pull and status than the English side but Ashley may choose to hold on to Newcastle and secure broader Sports Direct exposure through, for example, Rangers shirt sponsorship and stadium naming without bothering with battles for overall control.The giving up of Newcastle, which Ashley has insisted will not happen until the end of next season at least, would seem pivotal to any grander Rangers plan. The Scottish club have a bigger global pull and status than the English side but Ashley may choose to hold on to Newcastle and secure broader Sports Direct exposure through, for example, Rangers shirt sponsorship and stadium naming without bothering with battles for overall control.
Newcastle’s owner will be aware of the next TV rights deal for the Premier League and the increased riches that will come with it, providing both a reason for Ashley to retain his Newcastle interest and for someone to try and engineer a purchase.Newcastle’s owner will be aware of the next TV rights deal for the Premier League and the increased riches that will come with it, providing both a reason for Ashley to retain his Newcastle interest and for someone to try and engineer a purchase.
An element of the Rangers support continues to make an almighty racket about Ashley’s involvement. As entitled as they are, of course, there should also be a realisation that the exercise is pointless. Ashley has no interest whatsoever in being popular. On Tuesday, the Union of Fans movement issued a scathing statement in which they accused the Rangers board of “betrayal” and cited the acceptance of a £2m secured loan from Ashley over counter-offers as “an absolute disgrace”. An element of the Rangers support continues to make an almighty racket about Ashley’s involvement. Entitled as they are, of course, there should also be a realisation that the exercise is pointless. Ashley has no interest in being popular. On Tuesday the Union of Fans movement issued a scathing statement in which they accused the Rangers board of “betrayal” and cited the acceptance of a £2m secured loan from Ashley over counter-offers as “an absolute disgrace”.
The statement added: “It is now a matter of individual conscience for fans if they wish to continue to fund the corporate pillaging of our football club.”The statement added: “It is now a matter of individual conscience for fans if they wish to continue to fund the corporate pillaging of our football club.”
Ashley has not so much ridden as ignored wave after wave of protest at Newcastle, where supporters still turn out in terrific numbers to watch a team which seems no closer to success now than at any point over the last decade. If that backing was to dwindle, the impression is that Ashley would simply budget accordingly.Ashley has not so much ridden as ignored wave after wave of protest at Newcastle, where supporters still turn out in terrific numbers to watch a team which seems no closer to success now than at any point over the last decade. If that backing was to dwindle, the impression is that Ashley would simply budget accordingly.
Ashley’s support for Alan Pardew may prove welcome for the Rangers manager, Ally McCoist, albeit the prospect of a £1m-plus pay-off for the Ibrox club’s legendary striker cannot be ignored. McCoist, it has to be said, has not done too badly from a job which has involved playing against postmen and plumbers for the past two seasons.Ashley’s support for Alan Pardew may prove welcome for the Rangers manager, Ally McCoist, albeit the prospect of a £1m-plus pay-off for the Ibrox club’s legendary striker cannot be ignored. McCoist, it has to be said, has not done too badly from a job which has involved playing against postmen and plumbers for the past two seasons.
Football, however, is irrelevant for now. The off-field scenario at Ibrox has plenty of chapters in it yet but has never been more fascinating. Ashley is suddenly the key protagonist.Football, however, is irrelevant for now. The off-field scenario at Ibrox has plenty of chapters in it yet but has never been more fascinating. Ashley is suddenly the key protagonist.