Skip to main content

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.

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more