Ashley loans extra 1m to Rangers
Wed, 12th November 2014

Ashley loans extra £1m to Rangers

By Matthew Ord, Digital Staff Writer

Mike Ashley's MASH Holdings has increased a £2m credit facility given to Rangers Football Club by a further £1m.

The money will be made available for drawdown on 26 November 2014.

The extra £1m comes after the club "suffered from lower than expected match attendance" during the autumn, which worsened its financial condition.

The initial credit facility of £2m, which was entered into at the end of October, was for a six month period and interest free.

"The directors have begun a cost cutting exercise, but further working capital in addition to the facility will be needed before the end of the year," Rangers told the stock exchange.

The club has also entered into a partnership marketing agreement with Ashley's Sports Direct, in which the retail giant has given up its naming rights to the Ibrox Stadium.

Ashley had reportedly purchased the naming rights for just £1 after agreeing a deal with the club's former chief executive Charles Green.

David Somers, Rangers executive chairman, said: "This agreement has been concluded to demonstrate the importance both parties place on our relationship."

The agreement "consolidates existing marketing arrangements between the parties" and Sports Direct will "continue to have certain advertising rights".

At the start of October, Ashley doubled his stake in Rangers International Football Club to 8.92 per cent.

category North East  |  source Insider Media