What Rangers shareholder understands about Leeds United in 49ers takeover talks as 'yoyo' team swipe sent

Rangers shareholder and former chairman Dave King has provided an in depth update on the current status of the club’s pending takeover. The South Africa-based businessman has also taken a swipe at Leeds United, who are also part of the 49ers Enterprises stable.

The investment company and health insurance tycoon Andrew Cavenagh have been in discussions over an Ibrox takeover for months now. Recent reports have claimed that all paperwork will be finalised at the end of June.

While fans and pundits alike wait for the pending announcement, King has offered an insight into the progress, including how much restructure he feels is required to bridge the gap between Rangers and Celtic once again.

Dave King delivers Rangers takeover update

“These discussions have been going on for some time. About six months ago was the first time I chatted to Andrew to see if there was a basis for getting a deal done that would work for both parties,” King told talkSPORT (h/t Record Sport).

“Along the way, as with any negotiations like these, there were times when it was touch and go. But if you ask me where we are in terms of legals being signed and terms and conditions precedent that still has to be fulfilled, I would put it at about 90 percent right now.”

King revealed how he had planned to bring in someone with both a ‘football fan and financial plan’. Former Rangers director Paul Murray got in touch to point King in the direction of the 49ers, who were described as ‘the real deal’.

“It was only after they'd satisfied me through their bankers. I'm not going to disclose the figure but the amount of money was very, very substantial,” King continued.

“It was the amount of money I thought was needed not only to get this deal done, but to fund the club for the next two years and to bridge what I see to be the gap between us and our competition at the moment.”

Leeds connection will ‘not be a distraction’ for Rangers

Leeds United, who were recently crowned winners of the EFL Championship and secured promotion to the Premier League, will ‘not be a distraction’ for Rangers. King took aim at the Light Blues’ transfer approach and also addressed the concerns over the Glasgow giants becoming a feeder club to Leeds.

“I'm maybe being unkind to Leeds here but I think the difference, which is understood by Andrew and the 49ers, is that with Rangers you don't have the yoyo risk that you always have with a club like Leeds, with no disrespect to them.

“When they come into Rangers, they know when they make an investment that European football is pretty much assured and there's a reasonable level of certainty of how low Rangers can go. The situation is very different for Leeds United and the type of investment required in England to maintain that can be challenging for any investor, no matter how substantial you are.

“Whereas if you look at Scotland and the size of Scotland, the exposure they will get as that size of club. I'm not saying they are participating in a two-team league, but it's hard to envision Rangers or Celtic not finishing first and second, so European football at various stages will be there.

“It's easier to put the financial support to support the football plan that it is at a club like Leeds United, where it's a lot more challenging. As exciting as it is for them to be going up to the Premier League, they're going to have to make a lot of financial budgeting decisions to make if they want to stay there.”