Rangers crisis: '£30m hole' scared off Bill Miller bid

Rangers

US businessman Bill Miller has dropped his bid to buy Rangers after taking more time to examine the financial state of the club.

It is understood that his team was looking at a figure amounting to about £30m, simply to turn around the Glasgow club.

Why did Bill Miller walk away from Rangers?

Speaking on the BBC's Newsnight Scotland programme, Mr Miller's adviser Jon Pritchett said that when the millionaire looked at the detailed figures the financial situation showed "the hole is maybe a little deeper and the length of time is a little farther" than expected.

This is the key reason for the American businessman deciding not to invest in the club.

Why did the man from Tennessee want the club in the first place?

Bill Miller's business history includes turning around distressed assets. He was originally invited to invest in a consortium considering a bid for Rangers.

The consortium failed but Mr Miller's interest was aroused and he decided to pursue the club alone. His strategy was to turn Rangers around so that it was in a position to break even.

The thinking was that sporting assets accumulate in value even if they do not return large profits annually. If Mr Miller could acquire Rangers at a suitable price he would then be in a position to exit with a healthy return.

But key to that calculation was the amount of money needed to get Rangers to a position in which the club could break even.

Neither Mr Pritchett nor Mr Miller have commented on how big the financial "hole" was - but a ball park figure of about £30m has been suggested to the BBC. If accurate, and his plans are replicated by others, that could represent a significant commitment for any future successful bidder.

So he wasn't interested in football?

Mr Miller is said to be a sports fan but no-one suggests he has any long-standing affinity for Rangers Football Club.

He is, however, from a country which is showing an increasing interest in soccer. Mr Miller noted this trend and it helped him decide to pursue the purchase of a football club.

Friends, who are supporters of both Celtic and Rangers, then told him of the fierce Old Firm rivalry. It was something which he had planned to witness personally, but that now looks very unlikely.

Will he return?

There is little chance. Bill Miller has recently taken delivery of a new yacht and had been putting off a long trip on his new purchase.

His concentration in future months is likely to be on nautical, not footballing matters.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Glasgow & West

Weather

Glasgow

Min. Night 6 °C

Features & Analysis

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • People take part in an egg-cracking contest in the village of Mokrin, 120km (75 miles) north of Belgrade, Serbia on 20 April 2014In pictures

    Images from around the world as Christians mark Easter Sunday


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


Elsewhere on the BBC

  • ITChild's play

    It's never been easier for small businesses to get their message out to the world

Programmes

  • An aerial shot shows the Olympic Stadium, which is closed for repair works on its roof, in Rio de Janeiro March 28, 2014.Extra Time Watch

    Will Rio be ready in time to host the Olympics in 2016? The IOC president gives his verdict

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.