Dave King vows to resist Mike Ashley pressure

Rangers chairman Dave King has vowed to stand up to Mike Ashley's attempts to "bully'' the Ibrox board.

The long-running dispute between the Rangers board and Sports Direct founder looks set to rumble on into 2017.

Gers have launched a £4million legal action against the Newcastle owner and former club officials Charles Green, Imran Ahmad, Brian -Stockbridge and Derek Llambias over commercial deals stuck by the Light Blues' previous regime.

But Ashley initiated his own action against King, vice-chairman Paul Murray and the club itself after Rangers tore up retail arrangements with his firm.

King, addressing the club's annual general meeting in Glasgow, said: "The last year has seen a continuation of Mike Ashley and Sports Direct's attempts to bully your company's directors by suing them in their personal capacity.

"The present board comprises supporters who signed up for this challenge and who are not intimidated in the slightest by such bullies.''

Gers made a loss of £3.3million for the year up to June 30 and King confirmed soft loans from investor groups such as the so-called Three Bears "remain necessary'' to keep the club afloat.

But he also confessed the club faces having to shell out significant sums on legal fees to defend itself against Ashley's courtroom challenges for a "period of time''.

Earlier this year, a senior judge at the High Court in London branded Sports Direct's attempt to have King jailed for contempt of court as "designed to intimidate'' following a hearing over an alleged breach of confidentiality.

The sportswear firm later dropped the case.

"The situation with Sports Direct is pretty much out of our control as to what Mike Ashley might or might not do,'' explained King.

"What we can say is that Mike Ashley will do what he will do and we will resist it and defend it as strongly as we have done.''

King is now hoping shareholders will arm him with the power to water down Ashley's 8.9 per cent stake in the club. The board proposed a special resolution to offer shares to investors without needing to involve all existing shareholders.

King's board - who failed with a similar attempt last year - will find out early next week whether it has gained the 75 per cent backing needed to overcome the opposition of Ashley and former directors Sandy and James Easdale.

And the chairman said: "Over the last year we have made attempts to convince dissenting shareholders of the merit and business sense of our funding strategy.

"I'm hoping that we may receive greater support at this AGM and finally be able to put our longer-term funding plan into action.

"I've been advised that Ashley and the so-called Easdale Bloc have again opposed the resolutions tabled at this AGM but I hope our achievements over the last year may result in some of the others being won over.''

King confirmed he and his fellow investors had spent almost £20million since snatching control from the old regime in March last year, having bought up £6million in shares and handed out more than £13million in interest-free loans.

Those loans will be converted into shares should the special resolution pass.

During a question-and-answer session, King stated there was a plan B to get further investment from other avenues if the special resolution was not passed, adding: "The business plan that we have in place is completely independent of the funding plan. The only difference will be is whether we continue to rely on soft loans.

"But the comfort level I have is that the soft loans are being provided by individuals who are looking for no returns on these loans or immediate repayments.''

King confirmed Gers would need to continue racking up debts to his investor group in order to close the gap on Celtic - who already boast an 11-point lead over their Glasgow rivals at the top of this season's Ladbrokes Premiership.

However, he stressed the club "will not be exposed to any financial overstretching''.

Rangers are currently without a stock market listing although King admitted he would be keen to see other investors take some of the financial burden he and his allies are shouldering.

"I'd be delighted if others wanted to put money into the club and I didn't have to,'' said the South Africa-based businessman. "It's not an investment I would even remotely be making if it wasn't for my love of the club.

"The more people that can assist the better.''