King emerges as pretender to the Ibrox throne

Chief Sports Writer

Wednesday 20 April 2011

THE ownership of Rangers hangs in the balance, with Sir David Murray facing a choice of two suitors for his majority shareholding.

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HUGH MacDONALD chief sportswriter

In a sensational day in the takeover saga surrounding the club, Dave King, the South Africa-based businessman, emerged as a powerful challenger to Craig Whyte, the Scottish businessman who formally launched his bid for the club in November.

A statement by the independent committee of Rangers, who are scrutinising the Whyte bid, did not name King, but Herald Sport understands that the 55-year-old Rangers director is leading a £25m attempt to seize the prize from the venture capitalist who has spent more than five months and £500,000 in finalising his bid. Paul Murray, another non-executive director at Ibrox, is believed to be King’s major ally.Alastair Johnson, chairman of Rangers and of the independent sub-committee, issued a statement yesterday after reports of a major hitch in the Whyte bid.This statement highlighted concerns over the ability of Whyte to raise cash to take the club forward, stating: “We are still awaiting a detailed working capital statement demonstrating that there is sufficient funding in place to meet the pressing needs of the club.”It also revealed another bid was in the offing, stating: “The board has had an approach from one of its directors to consider an alternative funding option. This would involve a fresh issue of £25m to be invested directly into the club.”It is believed King would supply that money to pay off the debt with the Lloyds Banking Group and settle with Sir David Murray for his 93% shareholding, and that King has a plan to dilute this shareholding by selling parcels to a number of Scottish businessmen waiting in the wings. The money raised by this move would refurbish the stadium and would provide a budget for Ally McCoist, who will take over as Rangers manager at the end of the season.The Whyte camp reacted with fury at the development. A source said: “The move by the board makes no sense. It is clearly an attempt to delay further or disrupt the deal.”Sources close to the talks also pointed out that the Murray Group and the Lloyds Banking Group were satisfied by Whyte’s financial credentials. This was confirmed by a banking source who said Lloyds were entirely happy with the agreement drawn up to repay debt of more than £20m. Another source said: “There is £28m sitting in a bank account at Lloyds. This comprises £18m to attack the debt and £10m in working capital for the club.”The contentious issue is the £25m Whyte has promised, to bankroll McCoist. The independent board want concrete proof of the funds, but sources close to the talks insist this is contrary to good business practice. The independent group has no power to veto a deal, but the emergence of King ensures Murray now has a big decision to make.

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King emerges as pretender to the Ibrox throne

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