Leon King appears set to leave Rangers on a free transfer at the end of the season as his deal at Ibrox will run out.
Scottish Premiership leaders Hearts have emerged as shock contenders to sign the 22-year-old on a free transfer.
Currently, the Scottish defender is out on loan at Ayr United, where he has played 22 games in all competitions.
Conditions explained for Rangers to claim around £500k in compensation from Hearts
Under the SPFL and FIFA rules, clubs that develop a player are protected when that player moves clubs at the end of his contract before the age of 23.
As King has been at Ibrox since his school days and has come up the ranks at the club, he is considered to have been developed by Rangers.
However, for the Light Blues to be eligible for this compensation, they will need to have offered a new contract to the 22-year-old.
The terms of that contract must be better than or as favourable as his existing deal, before it runs out on 30 June.
Once that happens, then the two clubs will look to discuss the amount Hearts owe the Gers, even though it is a free transfer.
If they cannot reach an agreement, the case will then be referred to the SPFL Compensation Tribunal, which will determine an amount based on various factors.
It would not impede the deal, and even if it takes months to reach a verdict, King will be eligible to represent Hearts.
In such cases, Rangers News understands the tribunal would likely decide on an amount between £200,000 and £500,000.
Si Ferry and Jamie Murphy discuss Hearts’ interest in Leon King
Former Celtic academy player Si Ferry recently claimed that he heard about Hearts’ interest in King.
He said on Open Goal: “I heard the other day that Hearts are looking at Leon King.”
Ayr United winger Jamie Murphy also admitted that there were teams looking at the 22-year-old defender.
Murphy is King’s teammate and revealed that the club do not want to lose him, but he will be on the move once his contract runs out at the end of the season.
He also admitted that a back three would suit him and can understand his move to Hearts.
He said: “It wouldn’t surprise me. I know he is out of contract and there are teams looking at him.
“I feel like I am selling him when we want to keep him at Ayr, but he has done really well this year.
“He’s doing really well, Leon has been a standout.
“He is doing really well playing right of a back three. I’d say that is probably his best position, [like] when he came in at Rangers as a young boy when we were there.
“He played a bit of centre midfielder, and centre-half, right-back and that.
“I think that really suits him the right of a three because he is good on the ball and calm, and good in the air. He is doing really well.”
