When the news that the San Francisco 49ers were interested in buying Rangers, there was an immediate sense of excitement.
After all, the 49ers owners have a £6bn fortune to fall back on, should they need to put their hands in their pockets.
Football has changed though, and owners are no longer allowed to bankroll teams like they used to..
The most recent example is Newcastle Utd, whose Saudi Arabia based owners have ploughed some £340m into the club despite some big money transfer sales, playing in the Champions League and having nearly £150m a year just from TV money going into the club.
That £340m hasn’t been used for transfers, nor can it be used for that due to financial fair play and UEFA regulations, an issue that Rangers might now have to negotiate after news of their own share issue was explained.
Rangers to hold San Francisco 49ers share issue to raise funds
Writing in a question and answer session covering the report that the San Francisco 49ers have secured enough shares, Chris Jack has explained what a new share issue might be used for:
“The main purpose of the share issue will be to inject funds into the club for infrastructure projects and, more importantly, the rebuild of the squad over the coming windows.
“The details of the issue will be interesting. Again, that is a detail we are unlikely to get clarity on for the foreseeable future.”
The good news, is that the timeline for the 49ers to take charge is May, plenty of time for what will be a busy summer, if extra funds are needed.
What will the funds be used for?
The outgoing board and individuals like Dave King, who is selling all of his shares, sought transfer guarantees from the 49ers before agreeing to cash in.
A share issue might not be able to get used directly for buying new players for the Rangers squad, but if funds aren’t being sapped from elsewhere, Nils Koppen should have a few extra pounds in the budget.
It would also allow any money that is brought in via transfer sales, to be reinvested in the playing squad.
The chances of their being a blank cheque for Koppen are slim, however, the wage bill is in a better place and there is a strategy in place for the 49ers to develop.
All that is needed now is the support and finance.
