DAVE KING says the Rangers board wanted to put up club property to secure new loans.
The Light Blues posted heavy losses of £23.5million in the last financial year and cited the Covid-19 pandemic for hitting the club’s pockets hard.
1
And former Ibrox chairman King states he was approached last year by the club over giving the green light to loans made against the security of club belongings.
He refused to give his approval to the request but admits the present board are now free to make their own decisions now that the Laird loan has been repaid.
A statement read: “It is essential for supporter’s trust that the commitments made at regime change are never abandoned by those that gave them and it is for that reason that I have made this statement to clarify my own position.
“On a final note, unless I leave the wrong impression, it is only the directors at the time of regime change that I consider bound to provide interest free unsecured loans.
“That commitment can in no way be binding on those that came thereafter unless they specifically committed as such.
“I state this because I was approached last year by the club to grant permission for loans to be made against the security of club property- which I understood to be a requirement for certain new director loans.
“My permission was required because the SA authorities only agreed to the Laird loan being unsecured on condition that no subsequent lender could get better terms.
“I refused to even countenance such a request as I considered it against the spirit of everything I had committed to supporters.
“Now that the Laird loan has been repaid the present board is free to make its own decisions on using club property as security.”
The South-African based businessman also hit out at the Rangers board for “incorrect” information in their club accounts and explained why he was paid 16 per cent interest on a loan.
We reported last week that the former Ibrox chairman benefitted from £832,000 in interest repayments on a £5million loan
But the tycoon says the loan was incorrectly attributed to him personally rather than Laird – which is a company within his family trust structure.
He also questioned why the interest was included in the year-end report with the repayment made just over a week ago.
King continued: “It has been brought to my attention that there is confusion regarding the club’s recent incorrect statement that a loan plus interest was repaid to “Dave King”.
“There are concerns that this was a previously unreported loan that had somehow compromised Rangers present financial position.
“In addition, I was also forwarded two very similarly worded club linked media posts that queried whether interest should have been paid on the loan.
“Having been asked to clarify the true position, I have decided that the general release of a statement is the best way for me to do this.
IBROX POP Dave King slams Rangers board over accounts, explains interest payments and hits out at ‘club-linked media posts’
“The loan that was incorrectly attributed [in the June 2021 financial results presentation] as having been paid to me personally is the original loan that was provided by Laird [a company in my family trust structure] shortly before I announced my intention to step down as Rangers chairman at the AGM in November 2019.
“I disclosed Laird’s loan during my chairman’s statement at that AGM.
“When seeking approval from the SA authorities, the club worked with my accountant in SA to provide all the financial information required to support such a loan and the RIFC Board authorised it on the terms that were ultimately approved by the SA authorities.
“At the AGM in 2019, I expressed regret that the authorities in SA would not allow this much needed loan to be made without it attracting a market-related interest rate – but I was pleased that it was granted on an unsecured basis.
“The dramas of the David Murray/Craig Whyte/Mike Ashley eras had most damagingly exposed why the “owners” of the club at any time should never use the club’s assets to secure their own investment.
“That ultimately leaves the real risk with the supporters.
“I was determined that would never happen under my watch and was glad that my fellow directors (at that time) agreed with me.
“I explained at the AGM that my regret at interest being paid was that it went completely against the undertakings given by me and my fellow directors (at regime change) not to take director fees and not to receive interest or take security for loans provided to the club.
“The hardened position of the SA authorities to investment in the club reinforced the timing of my decision to step down.
“I had achieved my personal objective of removing the club from its state of crisis and it had become in the best interest of the club to be guided by individuals in the UK who, I thought, were capable of taking the club forward in a normalized manner [Covid had not yet happened] and who were willing and able to continue to provide any funds that might be required on an unsecured and interest free basis- and thereby honouring the commitment that we collectively made to supporters and shareholders.
BETTING SPECIAL – BEST NEW CUSTOMER OFFERS AND FREE BETS
“At the club’s request, the Laird loan that I disclosed was only payable after two years and, indeed, was repaid to Laird a little more than a week ago.
“This is long after the year-end that the club recently reported on and had no impact whatsoever on the club’s performance.
“The payment, including agreed interest, had been recognized in all cash forecasting throughout the prior two years and consequently had no impact whatsoever on the club’s anticipated financial position.
“Shortly before the payment was due to Laird, I was approached to consider an extension of the loan period to assist with the future funding of the club.
“I advised that it was too late to get approval from the SA authorities to extend the upcoming due date but that I was happy to make application for a new loan – but would require the latest financials for submission.
“I also confirmed that I expected that interest would still be required by the authorities.
“The club never took me up on this offer, which is completely understandable given that Douglas and John have again reconfirmed their prior commitments [as I understand it] to providing unsecured interest free loans.”
Rangers have been approached for comment.
Keep up to date with ALL the latest news and transfers at the Scottish Sun football page
Credit: Source link
