December 19 – The on-going turmoil at Scottish giant Rangers has taken another ownership twist with board member Derek Llambias appointed at the club’s new chief executive.
Llambias is a close associate of Newcastle United owner Mike Ashley and was previously the managing director of the English Premier league club.
Ashley made Rangers a crisis loan of £2 million in October (he is a 10% shareholder in the club) and Llambias joined the Rangers board in November.
The club is undergoing an aggressive cost cutting exercise and Llambias has been at the centre of the business management. In taking on the role a club statement to the Stock Exchange said that his salary would be considerably less than originally advertised, in line with other cost savings being made.
Rangers and Ashley face a Scottish FA hearing in January to explain the dual involvement Ashley has between Newcastle and Rangers and the extent of the cross-over. Ashley’s Sports Direct retail company controls Rangers’ merchandising and retailing operations – shirt sales being the most significant sales item.
Llambias takes over a role that was being filled by David Somers who returns to his non-executive chairman position. Somers was filling in as interim chief executive after Graham Wallace, former chief operating officer of Manchester City, was fired.
A key issue to be resolved will be the position of manager Ally McCoist who resigned but is working out a 12-month notice period and remains in charge of the team. It is believed that Rangers can’t afford the terms of his pay-off and hence will have to stick with him for the moment.
The club have had two successive promotions since bankruptcy saw enforced relegation put them at the bottom of the Scottish professional league structure in the fourth tier. Now in the Championship, the club are lieing in what, for them, is a disappointing second place with hopes for promotion back into the Scottish Premier League and renewal of rivalries with Scotland’s other giant club Celtic having pretty much disappeared.
Rangers hold their annual general meeting on Monday.
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