Rangers FC has reportedly entered a period of due diligence after agreeing to a sale in principle with a group of US investors.
Leeds United Chairman and 49ers Enterprises President, Paraag Marathe, and health insurance tycoon Andrew Cavenagh, are leading the takeover. The US conglomerate allegedly aims to purchase at least 51% of the club’s shares.
According to the club’s website, Rangers’ top three shareholders consist of New Oasis Asset Limited first (12.96%) Douglas Park second (11.54%), and George Alexander Taylor in third (10.22%).
Rangers’ on pitch performance hasn’t been on top form this year, but its finances have not been great either. The club recorded a net loss of £17.2m in its full-year financial report for 2024.
Player sales only generated £5.63m compared to £23.6m the year prior and if the club replicated the previous year’s sales it would have achieved a profit after tax. These things considered, it is unsurprising that the potential buyers have highlighted player trading and European progression as determining factors for future investment.
However, if the conglomerate becomes the owners of Rangers they aren’t running a failing club. Though tainted by the financial loss, Rangers reported a record core revenue of £88.3m, a total income high of £94.2m and a record commercial revenue of £67m, showing substantial growth in these areas.
Rangers is the second most successful in Scotland behind its fierce rivals Celtic FC, and despite its struggles in the league this season the club is still competing in the UEFA Europa League.
The club also has a huge fanbase across Scotland and internationally, and attracts sell out crowds at the Ibrox. These factors mean that despite some recent on-pitch struggles it still remains an attractive football investment.
So who are the potential owners? As noted above, Marathe is the President of 49ers Enterprises, the investment arm of the NFL franchise San Francisco 49ers and the VP of football operations at the franchise.
Marathe first ventured into European football in 2023, under the investment arm, purchasing a small stake in Leeds United. Since the firm’s involvement, Leeds has attracted several high-profile commercial deals such as front-of-shirt-sponsorship with Red Bull.
Cavenagh, Co-Founder of ParetoHealth, is the second biggest name involved in the group. While his company recently announced he is stepping down, Cavenagh is set to still help the firm through another role he holds.
There are some possible barriers to this deal, however. Firstly, the Scottish FA have a dual ownership rule that limits Marathe’s stake to 29.9% – making Cavenagh’s involvement critical.
Additionally, the English Football League (EFL) also has ownership rules that may present a problem. Leeds currently sits at the top of the table and are favourites to be promoted to the Premier League, which allows owners with a minority stake in a participating team to do so in other leagues, but not become a full owner
