THE Rangers board has rejected Dave King's plan to ring-fence season-ticket cash, the former director claims.
King met with the ruling Ibrox regime on Friday for showdown talks about the club's worrying financial state.
The club responded 24 hours later with a statement describing the meeting as a "helpful, open and honest discussion".
But the board rejected the South Africa-based businessman's proposed scheme, which would have protected season-ticket cash from being used to repay a controversial £1.5 million loan handed to the new League One champions by investors Sandy Easdale and Laxey Partners Ltd.
The loan agreement is secured against the club's Albion car park and Edmiston House facility and will earn Laxey a £150,000 profit in either cash or shares when it is repaid next year.
In a statement, King, a Castlemilk-born multi- millionaire, said: "The only significant issue that I discussed with the board that is not contained in the board statement is the Laxey loan facility.
"Mr [Norman] Crighton, on behalf of the board, made a forcible argument as to why the board considered and approved the terms of the Laxey loan.
"The board considered that a combination of legal risk and the current financial position justified the loan terms.
"I replied that a consequence of the board's view of the high risk to anyone advancing funds to the club is the board's fiduciary responsibility to ring fence any season-ticket money that is received (even if fans don't request this) unless sufficient committed financing is in place at that time.
"The board did not agree with me on this logical consequence but I believe that my observation is correct."
The former director - who lost a £20m investment when the club was liquidated in 2012 - also expressed fears that the board would mortgage off Ibrox and the Murray Park training facility to secure fresh finance.
But he added: "The board has now publicly dealt with each of the above. The board has affirmed that it regards competition with Celtic and in Europe as being its continued aim and that this outlook will be reflected in the business review that will be published within the next month.
"Crucially, that will allow fans time to consider the review prior to investing in season tickets but it is also important that the board has now confirmed categorically that they will not use Ibrox or Murray Park as security for any form.
"The board has now communicated with the fans and has committed to do so in more detail within a month."