Rangers Poised for Whyte Takeover
April 5, 2011
Scottish Premier League soccer giant Rangers are reportedly on the verge of agreeing a takeover of the club after owner Sir David Murray agreed a deal to sell the club to Craig Whyte.
Scottish tycoon Whyte has been locked in talks for some time over Murray’s 75 per cent stake with partner Andrew Ellis due to become a 25 per cent partner.
Whyte has brokered a deal that will see him buy the team’s home stadium, Ibrox and the surrounding land along with the club’s Murray Park training ground, if approved by the club’s board.
The deal is expected to cost Whyte around £28m (US$45.5m), though the overall financial implications of the deal for the new owner is expected to be twice as much having given assurances that he will invest £5m ($8.1m) in the playing squad in each of the next five seasons.
The new investment is set to clear the club’s Term loan with Lloyds Banking Group immediately, which is believed to be in the £18m ($29.2m) region, and the other smaller loans will be cleared over time.
Whyte’s offer will now be presented to Rangers’ board for approval and it is expected they will ratify it due to any long-term complications that could arise due to lack of future investment.