#Rangers bidder King fears club could be in administration by Christmas By Stephen Mcgowan PUBLISHED: 00:49, 8 August 2013 | UPDATED: 00:49, 8 August 2013 Rangers bidder Dave King last night claimed the Ibrox club will be in administration by Christmas unless Charles Green lowers his asking price and sells up. Despite losing £20million from a previous investment in the club, the former director is willing to plough more of his personal fortune into a controlling stake in Rangers. Branding the current share asking price ‘absurd’, however, the South Africa-based businessman says he won’t pour his cash into the back pockets of Green and his associated investors if it means having nothing left for players. Enlarge Warning: King says that Rangers could be in administration by Christmas if Green (centre) does not sell up Warning: King says that Rangers could be in administration by Christmas if Green (centre) does not sell up Green has already told potential takeover groups, including businessman Jim McColl and former director Paul Murray, that he wants £14m for a 28 per cent stake. However, keen to see the club recapitalised via the issue of new shares, King says the Yorkshireman and his cohorts risk losing everything unless they compromise over their selling price. Speaking to Sportsmail, King said: ‘There is an inevitability to the fact the people currently operating Rangers are going to run out of cash. ‘The club raised £22m via an IPO (Initial Public Offering) and that was whittled down to virtually nothing. ‘I think it was down to £5m or £6m in the bank and has now got a boost via season-ticket sales. ‘But the way directors are spending money on Green’s consultancy fees and other things, I don’t think they will make Christmas ‘The question then is: when they go to the markets again, are they going to find other investors willing to put more money in the club? ‘We had all these guys come in and buy into Green’s business plan. They paid 70p a share and witnessed those shares lose value very, very quickly. ‘They are not going to increase their holding and other investors are going to be very, very wary. ‘So if they get to the point where they are close to administration again by Christmas and the season-ticket money is gone and they have the same high overheads and are running out of cash, they will be faced with administration again. ‘And what that will mean is all the shareholders — including Green — losing all their money. In which case, they will have to be realistic about their demands at that stage. ‘The club is being run on the basis of protecting shareholder value — particularly by those who paid nothing for the shares and want to make something. ‘It’s a question of Green making £2m, £3m or whatever. He regards that as his compensation for what he thinks he has achieved. Gone: Walter Smith (right) resigned as Rangers chairman after the return of Green Gone: Walter Smith (right) resigned as Rangers chairman after the return of Green ‘But the way it’s going right now, he could end up with nothing. ‘His priority currently is to make sure he gets something. And he will continue doing that. ‘But the result of that is simple. The club will run out of money.’ King accurately predicted liquidation after Craig Whyte’s reign ended in administration, chaos and financial meltdown. And he has no wish to see history repeat itself. Free of financial restrictions — following a confidential agreement with the South African Revenue Service and the unfreezing of his UK assets — the Glaswegian still faces criminal charges in his adopted homeland. But King believes there is no impediment to his being declared a fit and proper person by the SFA and returning to the Rangers boardroom. No holding back: Rangers manager Ally McCoist criticised Green after the former chief executive said that the Ibrox club had to win a cup as well as the league this season No holding back: Rangers manager Ally McCoist criticised Green after the former chief executive said that the Ibrox club had to win a cup as well as the league this season ‘I am absolutely 100 per cent certain that none of these factors are an issue at the present moment,’ he insisted. The greater obstacle remains Green’s insistence on seeking 70p for shares that are currently worth just over half that on the stock market. ‘The current regime have made offers of shares to me at various stages and various levels,’ he added. ‘But the amounts on offer are insufficient to exercise any real control — and I have regarded the share price they have been asking for as absurd. ‘The value they place on their shares is still vastly over-inflated. ‘My view is quite simple. I am happy to put money into the club because I think the club needs money. ‘I am happy to be part of a recapitalisation of the club. But my preference would be to be issued with new shares. And the money I provide must go into the club. ‘And it must be properly controlled and properly managed. ‘Certainly, I don’t see myself or anyone else, frankly, putting money in to pay these guys off.’
Posted on: Thu, 08 Aug 2013 09:52:13 +0000