An American consortium is close to purchasing a significant stake in Rangers, with potential for a takeover of the Ibrox club.
Talks began last year but are now at an advanced stage and the consortium is understood to have progressed further than any other interested parties over the last decade.
Rangers fans are getting excited about what the changes could mean for their club and, ultimately, the team on the pitch.
There are undoubtedly significant developments still to come but already there are plenty of questions to be answered about the scale of the investment, the connections it could bring for Rangers and what rules would have to be followed for any potential boardroom takeover.
Who has made the bid?
The identity of everyone involved in the American consortium isn’t known yet, but the group is being led by US businessman Paraag Marathe. They are seeking to purchase a significant shareholding and gain influence at the top of the club.
Success would mean a fresh group of individuals having power within the boardroom, with the purpose of transforming the structure to make Rangers competitive.
Who is Paraag Marathe?
He’s the chairman of Leeds United (more on that later), and the president of 49ers Enterprises as well as being executive vice president of football operations.
Marathe has been with the 49ers for 24 years, having started as an intern working on contract negotiations. He has said that his passion for working in sport came from watching the Tom Cruise film Jerry Maguire.
That’s the NFL team, the San Francisco 49ers?
Adobe StockIt is. 49ers Enterprises is a company that manages all of the sport and entertainment assets and investments of the NFL giants, who are one of the biggest brands in sport and have been valued at $9bn.
The company has a diverse range of investments already, including data and tech businesses, a huge sports agency and some other sporting interests including English football club Leeds United.
A source has told STV News that while Marathe is at the front of the group of business people looking to buy Rangers shares, it’s understood this isn’t a formal move by 49ers Enterprises, though their expertise would be brought to the table to help Rangers.
What’s the extent of their involvement at Leeds?
Outright ownership, which isn’t what’s being pursued at Rangers right now.
49ers Enterprises first invested in Leeds in 2018 when the group bought 15% of the club. The initial announcement of that deal was described by the San Francisco franchise as “an investment entity affiliated with the San Francisco 49ers, 49ers Enterprises” striking “a strategic partnership” with the English side.
They steadily built up their shareholding , owning 44% by 2021 and completing a £170m deal to buy the club outright in 2023.
Since then, they’ve sold a very small number of shares to attract investment from Red Bull, but Leeds is a big part of the 49ers’ portfolio, and Marathe is chairman of the Championship club.
So is this investment or a full takeover of Rangers?
STV News understands that the proposed investment in Rangers is not on the same scale at this time but could potentially lead to a takeover. This investment deal involves negotiating with a number of shareholders but doesn’t need agreement from everyone for the consortium to take a stake in the Ibrox club.
Who currently owns Rangers?
The ownership of the club is currently shared among a number of different individuals and groups.
Former chairman Dave King is the largest individual shareholder with a stake of 12.96%. Douglas Park owns 11.54% and George Taylor holds 10.22% of the shares.
Stuart Gibson holds 9.53%, while John Bennett, who stood down as chairman last year for health reasons, has 7.11%.
Borita Investments and Perron Investment, owned by directors Julian Wolhardt and John Halsted respectively, hold a combined 12.69%, and fans group Club 1872 has approximately 5% of the shares.
How easy would it be to take a controlling interest in the club?
A controlling interest would normally be seen as owning 51% or more so that any votes, such as those at an AGM or EGM, would be carried in your favour. In theory, buying shares from among the existing shareholders to build up to that point would establish control but it may be a little more complicated than that.
Are there rules on dual ownership or the size of the investment?
Stock market rules state that taking a shareholding over 30% would mean an obligation to make an offer for all existing shares but there are football regulations that would also be a consideration.
Rules have changed over recent years to reflect the rise of global multi-club structures, as authorities look to strike a balance between ensuring there is no conflict of interest in European competition where one club might take primacy over a partner, and a wish to ensure that clubs can be open to investment.
Scottish football has already had similar cases, with the most high profile being when American billionaire and Bournemouth owner Bill Foley’s Black Knight Investments purchased a chunk of Hibernian.
The Scottish FA approved that investment but put an initial cap of 29.99% on the shareholding allowed. That figure isn’t a hard and fast rule though, and the Hampden board consider each proposal on a case by case basis.
The governing body’s rules on dual interest in clubs only state that the prior written consent of the board is given before any group or individual who can already “influence the management or administration” of another club can become involved in Scottish football.
The same would apply to individuals like Marathe as chairman of Leeds, or any other member of the consortium who already has an interest in another club. They wouldn’t necessarily be barred from taking a board position, with the intention of the rules to make sure that the overall board is separate and has a different make-up from other clubs in the same ownership group.
How long will it be before this investment or any takeover is completed?
That’s hard to say. While talks are at an advanced stage, there’s no established timescale on when new faces could take a seat at the Rangers boardroom table.
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