Rangers takeover: Deal with US investors Andrew Cavenagh and San Francisco 49ers Paraag Marathe agreed in principle — Sky Sports 3/3/25
Leeds United chairman Paraag Marathe, who is 49ers Enterprises president, and health insurance tycoon Andrew Cavenagh are leading the takeover bid; US group aiming to buy at least 51 per cent of the shares in Rangers ahead of the new season; legal paperwork for deal being drafted
By Sahil Jaidka and Lawrie Anne Brown
A deal for Rangers to be taken over by US investors has been
agreed in principle.
Talks have been ongoing since the end of October and there
is a growing confidence on all sides that it will be completed ahead of the new
season.
A period of due diligence is now taking place, while legal
paperwork is drafted up.
Paraag Marathe - president of San Francisco 49ers investment arm, the 49ers Enterprises - is one of two key figures in the takeover. He is working alongside health insurance tycoon Andrew Cavenagh, who is executive chairman of ParetoHealth.
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| Paraag Marathe (C) was at Rangers' Europa League match away to Manchester United. Jason Wilcox, backroom man at Manchester City (right end of back row), and Grétar Steinsson of the 49ers (left end of front row), were also present |
The US group are aiming to acquire at least 51 per cent of
the shares in Rangers and take control of the Ibrox boardroom.
Rangers' single largest shareholder Dave King is among the
key figures who is willing to sell his stake in the club. King has a 12.96 per
cent shareholding and one source has suggested the 49ers were one of three
serious parties to approach the former Ibrox chairman over investing in the
club.
Douglas Park (11.54%), George Taylor (10.22%), Stuart Gibson
(9.53%), Julian Wolhardt (9.53%), John Halsted (9.53%) and John Bennett (7.11%)
are among the others willing to part with all or some of their shareholdings.
It is understood that conversations have also taken place
around guaranteed future investment, with the final figure to be determined
based on variables such as European progression and player trading.
Last year Rangers posted a £17.2m loss and are currently 16
points behind Celtic in the Scottish Premiership, out of the Scottish Cup and
lost the League Cup final to their Old Firm rivals. They are still in the
Europa League - with a last-16 tie against Jose Mourinho's Fenerbahce next.
Who are the investors?
Paraag Marathe is chairman at Leeds United
Marathe is in his 24th year at the San Francisco 49ers and
is president of the NFL side's investment arm, the 49ers Enterprises. They are
set up to oversee outside business ventures and major investment opportunities
for the club. Marathe is also the executive vice-president of the 49ers
football operations.
The 49ers Enterprises were valued at £5.7bn ($7.2bn) by
Forbes just a few months ago and Rangers would be the second British club the
NFL giants have invested in, after initially purchasing a small stake in Leeds
United, before completing a takeover in 2023.
Cavenagh is co-founder of US based ParetoHealth - who manage around £5.2bn ($6.6bn) in assets and cover more than one million lives across thousands of businesses.
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| US Health tycoon Andrew Cavanagh (L) was at Ibrox in January as Rangers took on St Johnstone |
Earlier this year, ParetoHealth announced Cavenagh was
stepping down as chief executive officer of the US firm, although added he
would still help the company through his executive chairman role.
Cavenagh's involvement at Ibrox could be key in ensuring
Scottish FA dual ownership rules are not a barrier for the US duo - with
Marathe and the 49ers limited to a 29.9 per cent stake due to their involvement
at Leeds.
Current EFL ownership rules could also be an issue but with
Leeds top of the Championship, if they were promoted, those concerns would be
alleviated. If Premier League promotion was not to happen, another route around
the issue could come at the EFL's next AGM where the current rules could be
scrapped. If that were not to happen, the US consortium would need to ensure
their shareholding split met regulations.
What are they looking for?
Marathe says the 49ers are 'looking at opportunities' after
it emerged that American investors are working on a multi-million-pound
takeover of Rangers
Marathe - who refused to confirm if the 49ers Enterprises
were in talks with Rangers - did add they are "always looking at other
opportunities".
"I can't really comment on whatever rumours might be
out there," he told the Financial Times Business of Football Summit.
"But like I said, we are always looking at other opportunities. We have
been.
"And I think it is doable to replicate the passion [he
has for Leeds].
"What we are looking for is clubs with the right bones,
clubs with the right history of success. Clubs with the right potential for
growth and if you're a sportsperson and you love it and you treat it as a way
of life, so to speak, like I do, then absolutely there's enough room in your
heart.
"Just like there is to love all of your children,
there's enough room in your heart to love all your sports properties."
Could Rangers become a feeder club?
The short answer to this is no. When asked if the 49ers
would consider a multi-club model with Leeds as the cornerstone club, he added:
"Multi-club from the standpoint of like a hierarchy of clubs that maybe
some other folks do - that's not really how we look at it.
"Leeds Utd stands alone and if we were to look or
pursue another club, that club would stand alone on its own.
"Are there economies of scale benefits to having
leadership and ownership of multiple clubs? Absolutely with what you can share
and do on the commercial side. Even sometimes what you can do on the sporting
side.
"We haven't contemplated it as one club is a feeder
club to another. Each club deserves all of our attention and effort."
Other Premiership clubs under US ownership
Hibernian are owned by the Gordon Family, with the late Ron
Gordon acquiring a majority shareholding in 2019. Another American, Bill Foley,
joined that ownership group last year after securing a 25 per cent stake in the
club.
Last July American lawyer and Cambridge United shareholder
Adam Webb has completed his takeover of St Johnstone, with the move backed by
both the SFA and EFL.
Dundee are owned by American businessman Tim Keyes, while
city rivals Dundee United are owned by Mark Ogren.