Times Talker: Are you surprised Rangers will repay the £5million loan to Mike Ashley?

Yes, writes Graeme Macpherson

JUST five months ago Rangers shareholders backed chairman Dave King’s request not to repay the £5m loan outstanding to Sports Direct.

It came as something of a surprise, then, that the club announced on Friday at their AGM that they would, in fact, now be paying the money back in a move that was euphemistically labelled “a change of strategy”. Or, in more blunt terms, a U-turn.

There are, of course, many reasons for doing so. It releases the various securities that Mike Ashley held over Rangers’ registered trademarks, the Murray Park training complex, the Albion Car Park, and Edmiston House, and also sees his share of the onerous retail agreement return to just 49 percent from 75 percent. 

All useful things for Rangers to have control of back in-house once the £5m repayment has gone through.

One of the main reasons, however, for not paying Ashley back his money – apart from maybe a reluctance to ask the directors to again dip into their pockets – was that Rangers hoped it would give them a bargaining chip. As long as they owed Sports Direct this £5m, then there was a chance that it may provide some leverage in their attempts to renegotiate the retail agreement that is costing the club millions from revenue each year.

It is perhaps a sign, then, that the directors now realise that Ashley is not of a mind to loosen his grip, even with supporters continuing to boycott official merchandise, that they have now agreed to repay the loan, a move that allows them to set the ball rolling on the seven-year notice period on the retail agreement should they wish to do so.

That seems an awful long time to have to wait to get control of your own affairs again which is why the decision to repay the loan comes as something of a surprise.

Not really, says Chris Jack

THE announcement by Dave King on Friday that Rangers were to repay the £5million loan to Mike Ashley was warmly greeted by the shareholders in attendance at the AGM.

Many had seen the board’s reluctance to hand over the significant sum as part of a plan to give them a card to play in the poker game with the Sports Direct chief. While the loan was still outstanding, Rangers had something that Ashley wanted and therefore had a chip to put in the pot.

But it appears as though it has become increasingly evident that Ashley is not prepared to take a seat at the table.

There had been a hope that Rangers and Ashley could come to some sort of agreement, one that was mutually beneficial and could have helped both parties make money out of a deal that is now infamous.

With each day that passes, and each move that Ashley makes, it looks increasingly likely that there is little chance of reconciliation here.

Ashley has launched a series of legal moves against King, Rangers and the Scottish FA in recent weeks as his position has hardened. He is not a man that likes to lose, but Rangers are determined to fight him all the way.

King, Paul Murray, John Bennett, George Letham, George Taylor and Douglas Park will provide the funds to give Ashley his £5million back and the legal process will take several weeks.

For many fans, it will be a step in the right direction and it could well lead to notice being served to rip up the merchandise deals.

The settling of the Ashley loan will see Rangers’ assets and their trademarks returned to them and is another sign that the board are willing to put their money where their mouth is.

It won’t solve the problem of the contracts that continue to strangle a key revenue stream, though. And, while they remain in place, the supporters will continue taking to the streets and the stands in protest.

Rangers have taken a step in the right direction here, but there is still a long and difficult road ahead for the Ibrox board.