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US investment good news for Rangers, but for Leeds?

An American consortium that includes the San Francisco 49ers is believed to be moving closer to agreeing a substantial investment into Rangers.  The deal is being led by Paraag Marathe, an executive who leads the venture capital arm of the 49ers NFL team, but also includes members who have not yet been named.

49ers Enterprises already has a controlling stake in Leeds United after taking control at Elland Road in 2023 in a £170 million deal. Marathe is chairman at the Yorkshire club.

Talks are at a relatively advanced stage and may pave the way for an agreement to be announced in the coming months. There is potential for the consortium to attempt to buy out other Rangers investors and build up its stake in the Ibrox club over time..

Rangers already has a US presence in its boardroom and on its shareholder register.  John Halsted, a Wyoming-based private equity investor, has been a non-executive director since August 2023. He originally bought shares during 2021 through his family firm Perron Investments and has a 6 per cent stake.

Rangers’ most recent accounts showed a £17.2million loss while Celtic published almost the same figure as profit as well as having £65m in the bank.

The size of Rangers’ international support, particularly in North America and Australia, makes them a brand which is attractive to Marathe and his group, especially as they have almost guaranteed access to at least the Europa League every year. 

Around the Elland Road fanbase there is some confusion and concern about Marathe being distracted by Rangers when, in their mind, he should be concentrating only on getting Leeds back into the Premier League. Even more concerning, for some, is the possibility of Marathe and 49ers Enterprises selling all of Leeds to Red Bull, who already have a 10 per cent stake, and buying Rangers instead.

When Rangers are so eager for investment a buyout by sensible American investors is enormously appealing for supporters, but a deal would not be straightforward. The club’s ownership is fractured. Former chairmen Dave King, Douglas Park and John Bennett, as well as George Taylor, Stuart Gibson, Julian Wolhardt and John Halsted, all control stakes of between 7-12 per cent and –– to put it politely –– their interests are not all aligned. Because of the Leeds United factor, approval for dual ownership would be required from the Scottish FA although that is not likely to be a problem.

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