Newcastle United owner Mike Ashley has moved a step closer to gaining control of Rangers Football Club after lending the financially beleaguered business £2m in return for seats on the board.
Mr Ashley’s MASH Holdings Limited secured a deal with Rangers on Saturday which will see the club take a £2m, six-month interest free loan to use for working capital.
In return MASH has been invited to nominate two people for the Rangers’ board and will withdraw its previous notice to the club - demanding an extraordinary meeting of the shareholders.
An announcement to Rangers shareholders this morning confirmed Mr Wallace had resigned from the position of chief executive. Mr Ashley had previously pursued the removal of Mr Wallace and Philip Nash, who has also left the club’s board.
Mr Ashley’s deal is reported to have beaten off competing offers from Sale Sharks owner Brian Kennedy and former Rangers director, Dave King.
Mr Ashley’s shareholding in Rangers has already required consent from the Scottish FA, due to his ownership of Newcastle United.
It is unclear as to whether this latest move will spur the Scottish FA into further regulatory action.