RANGERS Football Club have called an extraordinary general meeting to
seek shareholders' approval for the long-term lease of the club's Albion
car park which is owned by a subsidiary of chairman David Murray's
property group.
In a complicated deal, Manchester-based NWS Property Investments Ltd
will pay one of Mr Murray's companies, PPG (Leisure) Ltd (PPGL), #3.9m
for a 125-year lease of the former training ground.
NWSPI will then sub-lease the car park back to Rangers, charging
#250,000 a year for the first five years, #330,000 from years six to 10,
increasing by 4% a year until a 34-year term is complete.
Thereafter, Rangers will pay a ''peppercorn rent'' of #3930 a year
until the 125-year lease is complete and the control of the car park
reverts to PPGL.
NWSPI is a subsidiary of the Bank of Scotland, which is also a major
backer of Mr Murray's privately owned group of companies, Murray
International Holdings, involved in metal, property, and leisure.
A financial expert predicted last night that it is possible the latest
proposal would create some unrest among shareholders, anxious that ''a
shuffling of assets'' was being arranged to accommodate the chairman's
business interests outside the club. This would mirror the response of
several shareholders who were angered when Rangers sold the ground in
April, 1990.
However, the club claims the move is the only way to guarantee the
future operation of its #22m club deck stand, building permission for
which was given by Glasgow District Council only on condition that a
minimum amount of car parking space was made available at the former
Albion training ground.
Mr Murray caused some raised eyebrows in September, 1989, when he
formed MBS -- a joint venture company -- with the Bank of Scotland.
Although the bank had only a 20% stake in the venture, it initially
advanced #30m in a revolving loan facility; #10m of that was used to
acquire five sites, including Rangers' Albion training ground and
another area of South Gyle in Edinburgh.
An extraordinary general meeting will be held in Govan Town Hall on
May 30 to consider the proposal.
The Albion car park has space for 1200 cars -- almost half of which
are taken up by corporate box holders and their guests and the holders
of the most expensive season tickets. The other spaces are sold to the
public on a first-come, first-served basis on match days.
Mr Douglas Odam, Rangers' financial controller, said the price of car
parking -- normally #2 per car -- would be reviewed only as part of the
club's overall operation of the stadium.
Because of the potential conflict of interest between Mr Murray's
property group and Rangers Football Club, Mr Murray will not take part
in the vote.
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