The former Ibrox director has expressed his concerns that decisions made in the coming weeks will affect the team's ability to compete with Celtic when they eventually return to the top flight.
He said: "The club has to have funders who will invest to ensure we can compete with Celtic when we get back to the top. Unfortunately, existing shareholders either don't have the money or the willingness to support Ally.
"With the right shareholder profile we should be investing in the squad, not reducing it. We should be supporting Ally 100%."
The first-team wage budget is 30% of turnover - significantly less than Uefa's recommendations - and there is currently no scouting set-up, following Neil Murray's removal as head scout last year.
Rangers could return to the top flight within 18 months, but the South African-based businessman is concerned about how strong the team will be then. King has said he would lead a new round of fund-raising through a fresh share issue.
The current shareholders would have to re-invest to maintain the relative size of their stake in Rangers International Football Club, so such an initiative would likely change the ownership dynamic.
Wallace has said he will address the need for new funding once the business has been streamlined.
King held meetings with Sandy Easdale, the shareholder and member of the Rangers Football Club board, last year in a bid to broker a deal that would have seen him invest in the club and take up the chairman-ship of RIFC plc.
He could not, however, reach a compromise deal with the different factions within the shareholder base.
He was also keen that Paul Murray, who King previously served with on the board, should return as a director.
Murray was among the four nominees who did not receive enough votes at December's annual meeting of shareholders to be elected to the board.
King, though, believes that the shareholders ought to have been open to working with Murray, who did receive the votes of around one-third of the RIFC shareholders.
"It is a great pity that the shareholders missed the opportunity to engage positively with Paul Murray," King said.
"He is a man that all Rangers' fans can completely trust."