Kieran Maguire: Rangers can ‘compete at the top’ after £1m deal agreed
Stuart Gibson increasing his stake in Rangers will help the club manage existing debt and increase their playing budget.
That is the opinion of finance expert Kieran Maguire, who spoke exclusively to Football Insider about Gibson’s recent purchase of shares.
Gibson increased his ownership in Rangers to over 10 per cent last month by purchasing four million shares in his boyhood club.
Football Insider sources revealed on 9 February that Gibson purchased £1million of additional shares in the club.
The property funding expert is now the third-largest shareholder at Ibrox and made his purchase with a direct cash investment as opposed to a loans-to-equity agreement.
Only Dave King and Douglas Park now own larger shares in Rangers than Gibson, and further investment could follow from Gibson.
Maguire believes the investment could be used by Rangers to realign some of the club’s debts while allowing the Scottish outfit to “compete at the top” with an increased budget.
“I suspect that the money raised from the Rangers share issue will be utilised, at least some of it, for working capital purposes,” Maguire told Football Insider’s Sean Fisher.
“There could be some realignment of the existing debts of the club which carry interest too.
“Replacing those with an equity investment will allow interest to decrease as an expense in future years, which will increase the playing budget and therefore allow further investment in the squad.
“It will allow Rangers to compete at the top end of the Scottish Premiership.“
In other news, Rangers expert issues Willie Collum claim as Allan McGregor controversy analysed – ‘if that was any other team…’