This post contains affiliate links. “As an Amazon Associate I earn from qualifying purchases.”
Club 1872 completed a first share purchase of former Rangers president Dave King.
Following talks between the two parties, the Ibrox fan group has revealed that all shared funds raised in the first half of 2021 could be invested directly in the Premiership club. The group announced in December that a £ 13 million deal had been reached with King to buy its main stake, while they currently own 5% of the club’s shares (sixth largest shareholder).
The 1872 Club is pushing for more than 25% of the shares in the future to give Rangers fans a voice in running the club.
The deal with King was greeted with some skepticism, but the new deal opens the door for the group to participate in upcoming stock issues.
A Club Statement 1872 He said: “Club 1872 is pleased to announce our first share purchase under the recently announced agreement with Dave King. This first purchase of 1,250,000 shares brings the Club 1872’s shareholding to 5.12 percent, again securing a crucial 5 percent stake.
The agreement with Dave King represents an enormously important strategic opportunity for the 1872 Club for the next three to four years; it is likely to be the only major source of action available to the organization after the first part of this calendar year as RIFC moves into the sustainability phase announced by John Bennett at the RIFC AGM.
“Therefore, it was essential that the 1872 Club put this agreement in motion as agreed last year and that our three-year campaign to attract legacy members get off to a strong start. We are pleased to say that in the couple of weeks that our campaign was active before the Christmas break, we were able to enroll almost 1,500 new legacy members.
We fully understand that the announcement at the RIFC AGM, that the RIFC Board will continue to fund RIFC shareholders in 2021, raised questions about where Club 1872 funds should be allocated.
“Since the launch of the campaign, we have made it clear that, should RIFC require funding, our dealings with Dave King were flexible enough to accommodate that. In fact, the RIFC board was contacted prior to the AGM to ensure their commitment that the 1872 Club could participate if they decided to go this route.
“We have spoken with Dave King over the holidays and we are pleased to confirm that we have agreed with him that all shared funds raised in the first six months of 2021, both from inherited and standard donations, may be available to RIFC if they go ahead with an issue. of shares under the terms John Bennett announced at the AGM.
“We have also withheld funds from our members’ contributions since 2020 to use for any share issue.
“If the RIFC share issue continues, Dave King agreed that he will add six months to our current agreement, which means that we will retain the opportunity to buy shares from you for 20p for a full calendar year after the share issue window arrives. of RIFC an end.
“If the share issue does not proceed for any reason, then the 1872 Club can use the funds to purchase shares from you as agreed. We thank Dave for his flexibility in this regard and for once again putting the financial well-being of the Rangers first.
“Despite some inaccurate comments in the press before Christmas, our commitment to directly supporting RIFC has never changed and has always been a publicly stated part of our ongoing plan to increase the shareholding of the 1872 Club. For the avoidance of doubt, this means that if RIFC moves forward as John Bennett announced at the recent RIFC AGM, all shared funds contributed by our members in the first half of 2021 may flow directly to the Rangers.
“This represents a wonderful opportunity for Rangers support to make a massive, multi-million dollar and unique contribution to the Rangers’ financial health, while also becoming the primary custodian of Rangers Football Club for the first time in its nearly 150 years of history. .
“We look forward to an early dialogue with the RIFC Board on the details of the 1872 Club’s participation in a share issue in the first half of 2021.
“In the meantime, we would urge Rangers supporters to come together so that we can make a huge financial contribution directly to the Rangers, grow our member base to the 20,000 goal, and continue our three-year plan, in partnership with Dave King. , to ensure a 25 percent stake in Rangers and protect the club for generations to come. “
Dave King resigned as president in March 2020 and was replaced by Douglas Park. Despite the Rangers sale, he remains popular with the club’s fans.