UPDATE: Following a request from the RIFC board for additional shareholder funding to cover the funding gap created by the Covid pandemic, Club 1872 and Dave King have agreed that funds raised in the first six months of our legacy campaign (from January 2021 – June 2021) can be used to assist the club in bridging that gap.
If RIFC go ahead as planned with this share issue then Dave King has agreed to add six months to the agreement to purchase his shares, meaning the terms laid out below will be unaffected by the provision of additional funding to RIFC. We are pleased to be able to assist the club financially during this period and would urge Rangers supporters to make a legacy donation today to help Rangers through this challenging time. Our campaign will then progress as laid out below from Summer 2021.
The main aims of Phase One of the Club 1872 Legacy Campaign are as follows:
We have three years (until December 2023) to complete this share purchase, with minimum numbers of shares required to be purchased each year in order for the agreement to continue. However, we hope to complete the sale sooner with the support of Rangers fans across the world. During this phase we will also seek to participate in any share issues held by RIFC. This will allow us to contribute directly to the club whilst also maintaining the shareholding percentage at its current level.
In the first year of our agreement, shares will cost 20p per share. This is in line with the current share price, as issued by RIFC, and is significantly below the average price paid by Dave King for the shares. If we can complete the purchase of the entire shareholding by December 2021 – which relies purely on how many Rangers supporters make a legacy donation and how quickly – then this will equate to a saving of over £2m on the price paid by Dave King for his shares.
In the second year of our agreement the price rises to 23p per share, and again in the third year to 26p per share. Even if Club 1872 takes the full three years to purchase the shareholding, we will pay no more than an average of 23p per share which is lower than the average price of 23.7p per share paid by Dave King.
However, our hope is to complete the purchase in time for the 150th anniversary of Rangers Football Club in 2022 and if we meet this target then our purchase price will be significantly lower than the price paid by Dave King. It would be hugely symbolic, and a wonderful way to mark 150 years of our great club, if we entered the 150th anniversary by making supporters the largest single shareholder in Rangers. It would also mean that only 10 years after we feared for the future of our club, the Rangers support would be the custodians of Rangers Football Club for the first time in its history.
We are extremely grateful to Dave King for the opportunity to purchase such a significant shareholding and also for making this opportunity available to us at a lower price than he paid for the shares. At no point during our discussions has he attempted to profit from his involvement in the club and his entire focus has been on providing Club 1872 and the Rangers support with the opportunity to ensure we retain a shareholding that will protect the club for generations.