Newcastle United Owner Mike Ashley Lends Rangers an Extra £1m

Sports Direct founder Mike Ashley has lent beleaguered Scottish football team Rangers FC a further £1m as he strengthens his hold on the club.

Ashley had lent Rangers £2m when he first acquired a stake in the club in October which gave him the strength to muster up a bid to oust chief executive Graham Wallace and finance director Philip Nash – who have since resigned.

Now the former SPL giants have announced that the Newcastle United owner has extended that loan to £3m, while also entering into a marketing agreement with Ashley's Sports Direct.

A statement to the Stock Exchange says that MASH, Mike Ashley's holding company, "shall make available the additional sum of £1 million for drawdown by the Company on 26 November 2014".

Rangers said that they needed the extra funds due to poor attendance from the fans.

"During the Autumn, the club has suffered from lower than expected match attendance which has exacerbated the financial condition of the business The directors have begun a cost cutting exercise, but further working capital in addition to the facility will be needed before the end of the year," read the statement.

However, as initially agreed in the first bout of discussions, Sports Direct has given up its right to rename Rangers' Ibrox Stadium.

"The Board of Rangers is pleased to announce that Rangers Football Club Limited has entered into a partnership marketing agreement with SportsDirect.com Retail Limited ("Sports Direct") in which Sports Direct has given up its naming rights to the Ibrox Stadium," the club said in a separate statement regarding the deal.

Executive chairman David Somers said: "This agreement has been concluded to demonstrate the importance both parties place on our relationship. The Rangers Board welcomes this visible demonstration of the Sports Direct support and long term commitment to Rangers."