DAVE King has revealed Rangers can pay back the £5 million loan to Sports Direct straight away - and reclaim all of the Ibrox club's major assets.

And he is confident the controversial contracts with Mike Ashley's sports goods company won't prevent the Glasgow club rebuilding for the future.

Newcastle United owner Ashley was given security over Murray Park, Edmiston House and the Albion Car Park in return for an injection of cash in January.

However, King, who gained control at his boyhood heroes at an EGM yesterday morning, expects to repay that money to the enigmatic billionaire immediately

The major shareholder said: "If we look at the contracts he's got in place and they allow him to call up the loan immediately it is a priority.

"Then it's something that has to be faced immediately. We're kind of expecting that in a way. But the funds are there to pay him.

"But until we look at the contracts and see them ourselves we're not sure what rights he's got."

King doesn't believe the second Sports Direct loan will be drawn down and predicted he can work with Cockney businessman Ashley going forward.

He also expressed hope Gers fans will start buying official merchandise once they reveal the terms of the deals.

There has been speculation that Rangers only receive 75p of every £10 spent at club shops under a deal agreed by former chief executive Charles Green.

He said: "One doesn't expect to find it an impossible mess. The club has been in such a difficult situation, you can't imagine there are a lot of creditors have loaned money and not been paid.

"I would imagine there may be opportunities there but I'm not expecting anything dramatic other than what we know. It's financially challenged, but I think the club is far from being in a crisis."

King added: "I've heard from one person who has seen some of the contracts and I regard as being fairly reliable. He has told me we won't find anything untoward when we look at the Mike Ashley contracts.

"He said the best we'll find is someone who is commercially aggressive and has out-negotiated the people who were on the board. If that's the case then good luck to him.

"Others have said it's not that simple and we'll find that. If that's the case then we'd have to look at that very carefully.

"But if Mike Ashley is going to continue his relationship with the club and we assume his contracts are robust and we have to live with them and come to the conclusion they're fairly balanced to the club and we let the fans know that then they can resume spending.

"One of the reasons the fans aren't spending on the kit is because they think a disproportionate amount is going to Mike Ashley. So it's in his interests and he knows as we sit here today what we're going to find when we get there.

"If he's confident there's nothing untoward then it's better for him for us to go to the fans and say: 'Listen, we've seen the contracts, we've heard all the noise leve,l but we can live with them'.

"That's good for Mike Ashley and we'll tell the fans to buy the kit again because enough of the money is coming back to the club."

King has decided not to take up a place on the Rangers board until he has proved to the AIM Stock Exchange and the SFA he is a fit and proper person.

The Castlemilk-raised South Africa-based financier was convicted of 41 tax offences in his adopted homeland back in 2013 and had to pay authorities £40 million.

But the former director, who ploughed £20 million of his personal fortune into his boyhood heroes during Sir David Murray's time in charge, is comfortable he will be cleared to be chairman.

King said: "I wouldn't have started this process if I didn't think I was fit and proper. I've had no discussions with Nomads or other regulators that suggests there are concerns.

"The only concerns that were aired came from the other side who felt the need to flag this. It was a mechanism to deflect away from their own failings."

King believes the current absence of a nominated financial advisor - WH Ireland stood down on Monday when it became clear the board would be voted out at the EGM - is irrelevant.

He said: "The Nomad is not an issue. Whether Rangers is listed is not an issue. The listing is irrelevant.

"It is something that affects a specific group of investors - of which there is very few right now.

"You have really only got River and Mercantile who as a London-based institution can't invest in unlisted companies.

"But most of the other shareholders would be as happy to be in the club whether it is listed or not.

"So the listing to me was just noise level from the other side given they didn't have much in the way of real argument."

King believes it would be "challenging" for Rangers football board chairman Sandy Easdale to have a role in the future running of the Ibrox club.

But he would be happy for the Greenock-based bus magnate, his brother James, who stood down as a director last week, and Ashley to invest in the second tier club at a future share issue.

He said: "If we have a rights issue then I'd be quite happy if the Easdales put money in - the more people who invest the better. I suspect they won't and the burden will fall on people like us, but I'd rather spread the burden."