Takeover may produce cash boost

08 April 2011 18:00

Rangers manager-in-waiting Ally McCoist could be handed a bigger than expected transfer budget for next season if Craig Whyte succeeds with his takeover, it is understood.

All parties involved with the deal are hopeful of a resolution before the end of next week, with all sides believed to be keen to push the buy-out over the line. Whyte officially announced his intention to make a bid for Sir David Murray's controlling stake in November and completed his due diligence almost two weeks ago.

A source close to the deal told Press Association Sport: "He (Whyte) wants to get the right deal for Rangers and for the manager and players, as well as the right deal for the fans, who deserve nothing less."

The source added: "That's why things are taking the time they are because Craig Whyte is determined that, if the deal goes through, as much cash as possible goes into the club and into the squad. That's been his goal from the start."

It has been well-documented that Whyte planned to invest £25million in the playing squad over five years - £5million per year - but he is sympathetic to appeals for a larger initial input of cash to strengthen the squad.

Walter Smith's selection worries were highlighted last weekend when he was able to name just five substitutes on the bench for the defeat to Dundee United, with the outgoing manager having to cope with a compact squad that has been hit hard by injury.

It is now understood that McCoist - who will take over the helm at the end of the season - could receive more than £5million initially to give an urgent boost to the squad. A potential complication to the deal emerged last Friday when the club's interim financial figures revealed a one-off payment of £2.8million to HM Revenue and Customs.

The liability from "player compensation schemes" from 1999-2003 initially came as a surprise to the Rangers board, and it is believed to Whyte too, and there was no certainty over who would foot the bill.

The issue is separate to an ongoing tax investigation which chairman Alastair Johnston admitted could leave Rangers with a bill they cannot afford to pay.

However, it is believed there are no major issues outstanding, albeit the potential takeover is a hugely complicated transaction and lawyers and advisors have run up thousands of man-hours so far as they wade through myriad documents.

Source: PA