Mike Ashley Loans Extra £1m to Rangers FC

English billionaire Mike Ashley will provide another loan of £1 million to Scottish Championship club Rangers.

Ashley, who owns Premier League club Newcastle United, currently owns around 9% of the Scottish club and will increase an initial loan of £2 million to £3 million

A statement to the Stock Exchange read: “The Board of Rangers announces that MASH Holdings Limited has agreed to increase the £2m credit facility (the Facility) announced on 27 October with The Rangers Football Club Limited.

“MASH shall make available the additional sum of £1m for drawdown by the company on 26 November 2014. All other terms remain the same.

“During the autumn, the club has suffered from lower than expected match attendance which has exacerbated the financial condition of the business.

“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.”

The 50-year-old, who also owns UK sports retail chain Sports Direct, will also give up the naming rights to Rangers’ Ibrox stadium, which he purchased for just £1 as part of a retail deal a few years ago.

A separate statement to the Stock Exchange read: “The Board of Rangers is pleased to announce that Rangers Football Club Limited has entered into a partnership marketing agreement with SportsDirect.com Retail Limited in which Sports Direct has given up its naming rights to the Ibrox Stadium.

“The agreement consolidates existing marketing arrangements between the parties and results in a more normalised retail joint venture marketing arrangement, in which Sports Direct will continue to have certain advertising rights.”

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

“The Rangers board welcomes this visible demonstration of the Sports Direct support and long term commitment to Rangers.”

Sandy Easdale, chairman of the Rangers football board, said: “It’s a fantastic step forward for Glasgow Rangers to get the naming rights back.”