Rangers are braced for US investment to flow into Ibrox as the investment group behind the San Francisco 49ers targets a controlling stake.
News broke this week that the Rangers shareholders are in ‘advanced’ negotiations over the sale of the club to the US group which has already invested in Leeds United.
Rangers’ largest single shareholder Dave King has confirmed that the Gers are in talks over a sale but that much of the conversation around the situation is ‘incorrect’.
It comes amid claims that 49ers Enterprises are targeting a 51% stake in Rangers with a deal potentially set to be complete as early as April.
Now, a new name has appeared on the scene and it appears Paraag Marathe is not the only figure with a vested interest at Ibrox.
Andrew Cavanagh to take ‘key role’ at Rangers
Whilst San Francisco 49ers chief Paraag Marathe is a key player in the proposed Rangers takeover, the Leeds United chairman is not expected to take on a similar role at Ibrox.
For the time being it remains unclear how Rangers will look in the wake of any takeover, with the club only just appointing Patrick Stewart as CEO and Fraser Thornton as non-executive chairman.
But the Rangers Review are now reporting that US businessman Andrew Cavanagh is the mystery investor referred to in previous reports.
The US health insurance tycoon was in attendance as Rangers played St Johnstone earlier in the year and is another important figure in any takeover deal.
The report claims Cavanagh will take a up a ‘key role’ at Rangers as part of the regime change, the American exec currently chairman of Philadelphia-based health insurance firm ParetoHealth.
Cavanagh also helped found Garnet Captive Services, LLC and Elevate Insurance Services, LLC, whilst he served on the board of the Self-Insurance Institute of America.
Dave King hails ‘constructive’ progress in Rangers takeover
Former Rangers chairman Dave King wants the proposed American takeover to be his Ibrox legacy with the South Africa-based businessman the driving force behind the deal.
King’s near 13% stake in Rangers makes him the largest single shareholder and he was the one who sourced these investment opportunities before presenting them to the other six key players.
It is believed that the Rangers executive team are open to striking a deal with reports in the USA claiming the takeover is already ‘well-baked’ and expected to go through in the first half of this year.
“Given that the Club had made it clear that I had no further role to play I thought it would be a fitting legacy if I sought out potential investors that met my criteria and who could buy out some of the existing shareholders (such as me) who no longer have a role to play and then inject new funds to become a new anchor shareholder,” said King.
“Such an investor would also need to be acceptable to supporters and to have the appropriate skills set to take our unique club forward. It was extremely unlikely to find such an investor in Scotland (which is why I was pulled into the regime all those years ago).
“After ‘kissing many frogs’ I finally identified two possibilities – one of which was introduced by an ex-colleague. Both met my criteria and I engaged with them accordingly.
Photo by Ian MacNicol/Getty Images
“The initial engagement required discussions with the principals to understand why they wanted to invest, confirming proof of funds from their bankers for the level of investment I think is needed over the next few years, and establishing what a potential deal might look like. After the initial high-level discussions, I had an initial preferred investor so I put the other one on hold by agreement.
“I then, over a period of time, engaged with individual shareholders and directors to try to get broad consensus on a deal that might be done and that I felt I could support personally and that I thought supporters would support.
“That point was reached and more formal discussions ensued between the potential investor and the board as a collective. Discussions have proceeded in a constructive manner but a deal has not yet been finalised and the parties remain bound by confidentiality.”
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