MIKE ASHLEY refuses to indulge in the wild spending of previous regimes in the search for success at Newcastle United but Charlie Nicholas, the former Celtic striker now a respected observer of English football with Sky Sports, does not believe that Ashley's arrival on the scene at Rangers is the resounding negative many supporters believe it to be.

Nicholas argues that the key difference between his interests at St James' Park and Ibrox is that Rangers do not need countless millions spent on the team to make them competitive with a Celtic squad damaged by a culture of short-term thinking ahead of long-term gain.

He believes that Ashley's business pedigree should command a degree of respect and that the Buckinghamshire-born tycoon can fix those ­horrifically-damaged finances at Ibrox and bring stability. The former Scotland striker is also of the opinion that it would not take very much at all to rebuild Rangers into a team capable of winning the SPFL Premiership, because of the way Celtic has been run in recent seasons.

"It wouldn't take a lot of investment to make Rangers able to compete with Celtic," said Nicholas, who was inducted into the Scottish Football Hall of Fame on Sunday. "I don't know if you can talk in terms of finances, but I'd say they are only four half-decent players away. There are a lot of politics involved that people may know more about than me but Rangers have to fix themselves financially. If they can do that, they are not going to be far away from coming back to being quite a strong force again.

"I think Rangers will go softly, softly to begin with, though. They need to sort the business side of things out and then get back to being the club they once were. I don't see any issue with Mike Ashley getting involved in any company. When he does, they become successful.

"I don't know if Ashley will get his teeth into it and eventually take over Rangers but he obviously sees something exciting in it. I know quite a few people who have done business with him and they are all very complimentary. I don't think he's a ruthless guy. Yes, he's ruthless in business but he produces. Look at what his share issues do for workers [at Sports Direct]. He's a fairly generous man. [But] that's not to say that he's the right man.

"Newcastle fans, of course, are very much against Ashley, but one thing nobody can deny is that he is one seriously clever businessman. He has actually spent quite a lot of money at Newcastle this season and they do make a profit. He has slashed the budget, but he does not get involved in picking the team in the way that people at Hearts and a few other clubs had to suffer. Ally McCoist may quite like that.

"He simply puts a financial ­package in place. If you play by the rules he sets, he lets you get on with it. There has been too much confusion at Rangers and it is time for them bed down once and for all."

Of course, McCoist's longer-term future as manager remains uncertain but Nicholas is happy there have been no immediate moves to force him out of the hotseat. "I don't see the method in that," he said. "Who is out there who is going to take the Rangers position and make it dramatically different? If Ashley says he is going to spend £20m or £30m if Rangers get up, it is his prerogative to say whether he trusts Ally or there is to be a change.

"The Scottish League is not that kind of market, though. I have been critical of Celtic for spending £2m on players here and there and trying to sell them for £5m or £6m. That is not progress. That is short-termism."

Nicholas is certainly unhappy with the way Celtic have performed under the club's latest manager, Ronny Deila, but places much of the blame at the door of the chief executive, Peter Lawwell, and his fellow directors.

"I don't quite know what [Deila's] formation or style of play is and the fans certainly don't, but I just feel it's the club that have been lacking in the last few years," said Nicholas.

"The manager doesn't pick the signings. Celtic should have identified lots of young players and given them more opportunities. They've missed that chance and bought short-term all the time. Craig Gordon has been their best player by a million miles this season. However, if someone bids £5m will they sell him? Of course they will.

"It's been run as a business, which, for me, takes the heart and soul out of the club. I'm sure the Celtic fans would love to see another Lubo [Moravcik] or someone like that, but I don't see a rush of kids saying, 'I want a shirt with Denayer on the back'. What's the point in bringing in a 19-year-old centre-half on loan? I don't care if he's Franz Beckenbauer; it's choking the young Scottish players coming through."