US Investors Lining Up Rangers FC Takeover

Scottish football giants Rangers FC have reportedly entered a period of due diligence after agreeing to a sale in principle with a group of US investors, where the deal, if completed, would see at least 51% of the club’s shares acquired by the investment group led by Leeds United Chairman and 49ers Enterprises President, Paraag Marathe, and health insurance mogul, Andrew Cavenagh.

Financial Struggles and Investment Potential

Despite its historical success and devoted fanbase, Rangers FC has faced financial challenges in recent years. The club recorded a net loss of £17.2 million (AUD$35.1 million) in its full-year financial report for 2024, with player sales generating only £5.63 million (AUD$11.45 million) compared to £23.6 million (AUD$48.27 million) the previous year. Had the club matched its 2023 player sales, it would have recorded a post-tax profit.

However, the club’s financial health is not entirely bleak, with Rangers reporting a record core revenue of £88.3 million (AUD$180.61 million), total income of £94.2 million (AUD$192.67 million), and a record commercial revenue of £67 million (AUD$137.04 million), which showcase the club’s strong commercial potential and growing brand appeal.

Who Are the Potential Owners?

Paraag Marathe

Marathe is a prominent sports executive, serving as the President of 49ers Enterprises, the investment arm of the San Francisco 49ers, and Vice President of Football Operations at the NFL franchise. He ventured into European football in 2023 through 49ers Enterprises’ investment in Leeds United. Under his guidance, Leeds has secured high-profile commercial partnerships, including a front-of-shirt sponsorship deal with Red Bull.

Andrew Cavenagh

Cavenagh, the co-founder of ParetoHealth, is another key figure in the proposed takeover. Though he recently announced his departure from his role at ParetoHealth, he is expected to remain involved with the company in another capacity. His involvement is crucial due to ownership regulations in Scotland.

Potential Barriers

Despite the appeal of this acquisition, there are regulatory challenges to overcome. The Scottish Football Association (SFA) enforces a dual ownership rule, limiting Marathe’s stake in Rangers to 29.9%, making Cavenagh’s role in the investment group essential for securing a majority stake.

Additionally, English Football League (EFL) regulations may present another obstacle. Leeds United, currently leading the EFL Championship and in prime position for promotion to the Premier League, is subject to ownership rules restricting full ownership stakes in multiple clubs within England’s top tiers. While minority ownership is permitted, full control of another club may face scrutiny.

The Next Steps

The coming weeks will determine whether the US-led investment group will finalise the acquisition of Rangers FC.

The deal holds the potential to inject new financial stability into the club, while also strengthening its commercial standing, however, the group must first navigate regulatory hurdles to secure control and guide Rangers FC into a new era of growth and competitiveness.

Don’t miss out on the latest in sports business – Subscribe today to the free Ministry of Sport newsletter and stay ahead of the game. For even more exclusive insights, event tickets, professional development and networking events, become a MoS Member today!