Search Keywords
Financial Times Wall Street Journal Economist
News Period From   To
News: 60885    Funds: $437    Pays: $524

Go Back to
News List
|
|
This News on
Daily Paywall
  Rated 40 | Views 473
Rate it | Share it 

Companies
Ashley faces SFA action over Rangers’ role
From the Financial Times of Mon, 15 Dec 2014 20:07:00 GMT
©Getty

Mike Ashley

Mike Ashley’s grip on Rangers is under threat after Scottish football authorities filed a formal case against him for alleged breaches of rules relating to running more than one club.

The Sports Direct entrepreneur is the owner of Newcastle United and has built up a stake in Rangers that stands at 8.9 per cent.

He signed an agreement with the Scottish Football Association that he would not take his stake above 9.9 per cent, in order to comply with its “dual interest” rules.

These are designed to prevent the owner of a club elsewhere having a sizeable interest in a Scottish club.

But the undertaking also required Mr Ashley not to exert undue influence and control over Rangers.

Mr Ashley has negotiated with Rangers to provide two loan payments totalling £3m.

He also agitated for the removal of two directors, including Graham Wallace, former chief executive. Mr Wallace and former financial consultant Philip Nash subsequently quit the club.

A third Rangers board director left last week.

Mr Ashley has been allowed to nominate two board directors. Derek Llambias, a long-term football adviser to Mr Ashley and former managing director at Newcastle United, was last month appointed to the board.

The SFA wrote to Mr Ashley and the club when these arrangements came to light and has now announced that it is to stage a hearing into three alleged breaches against Rangers, and two against Mr Ashley.

Rangers is alleged to have breached one regulation requiring the club to act in good faith.

Both the club and Mr Ashley are alleged to have breached rule 19 — the dual interest rule — and rule 77, which requires them to act in the best interests of football.

The hearing is set for January 27.

Mr Ashley, Rangers and the SFA could not be reached for comment.

The SFA’s move comes a week before the cash-strapped club holds its annual meeting when it will seek shareholder approval to raise money through issuing new shares.

The AGM comes at a time when the club is searching not just for a new chief executive but a new manager. Rangers announced on Monday that Ally McCoist had resigned, and that he was on a 12-month notice period.

“The directors will hold discussions with Mr McCoist to seek an amicable solution in the best interests of the company, and expect to be in a position to make a further announcement before the end of the week,” Rangers said.

The club added that Mr McCoist’s salary would “increase significantly” to £750,000 a year during the notice period.



This article is provided by DailyPaywall.com, which is published and distributed by Paolo Cirio Ltd., registered in England, number 8188080. Registered Office: Suite 36, 88-90 Hatton Garden, City of London, EC1 N8PG, United Kingdom. Paolo Cirio Ltd. alone is responsible and liable for information and services provided through Daily Paywall’s newspaper and website.

Daily Paywall pays for reading these newspapers’ news!




Earn Money
Offer Money
Buy Advertising
Buy Artwork Article

Similar Articles
Financial News that Matter for free!