Rangers, Darius Campbell and the Florida Court: What's going on?

Claim, counterclaim, and even an appearance in the story by the recently deceased pop star Darius Campbell - it's a strange and baffling situation.

Rangers Review editor Jonny McFarlane attempts to break it all down into the key questions and answers having seen the court documents.

So what's actually happening?

Rangers are suing the Delaware-based "independent capital advisory" company KRF Capital in a Florida court. Rangers assert that, after opening dialogue with the club via talks with vice-chairman John Bennett about investment, KRF was rebuffed and discussions concluded. Despite this, court documents allege that KRF began circulating a detailed investor deck using club branding. Within the document there are alleged to be false claims, including that Rangers are for sale. KRF say only one person was given the deck and he signed a non-disclosure agreement.

So who's behind KRF?

A 49-year-old American businesswoman called Kyle Fox. She is a Miami-based financier who has worked for the likes of Lloyds, Duff and Phelps, Deutsche Bank and Goldman Sacks. Fox describes herself as someone who looks to "mentor and serve as an advisor to early-stage companies."

She does not appear to be someone who would personally inject vast sums of capital, but rather a businesswoman looking for an opportunity to go to market and bring more investors in. Sources state this is a normal process for sports investment in the United States.

She is being advised by Adrian Bevington who introduced her to former Rangers director Paul Murray.

Who is Adrian Bevington?

He's a former FA executive who is highly regarded by sources in the English game. His current role sees him utilise his contacts to link football clubs with potential investors. He has not been accused of any wrongdoing and is a credible figure, well-known north and south of the border. It appears his key role was bringing Fox and Murray together.

What's Paul Murray's role?

It was Murray who introduced Fox to Bennett via email in June 2022. Rangers are understood to have been keen to extend every courtesy to a two-time former director of the club.

Given Rangers shares trade openly, no notice has to be given to buy them, however, Murray advised Fox the board's relationship with outside investors is "sometimes characterized by rocky relations and mistrust" and that transparency would be the way forward. An approach was made with the apparent best intentions of keeping everyone in the loop about what was happening.

Meanwhile, Murray was also taking part in discussions with "certain large shareholders who were interested in selling their shares, in principle, at her offered price". He claims these unnamed shareholders are still interested in a deal.

So what was the proposal?

Initially, Fox offered 25p per share in an attempt to purchase 75 percent of Rangers. This included a further commitment of a £50m cash injection over the next five years but was rejected by Rangers vice-chairman Bennett.

This led to a meeting in London where a new offer was made. Fox decided that her company would be able to "achieve our investment objectives by purchasing a minority, rather than a majority, ownership of the club". Looking to secure a minority stake, Fox increased the offer to 40p a share and committed to a capital commitment of £75m over five years "to be contributed on a pro-rata basis with other shareholders".

Okay, stop, what does 'pro-rata' mean in that context?

If Fox was to purchase 25 percent of the club in this hypothetical situation, it would mean her investment vehicle contributes £18.75m while the other investors, having already sunk in for multiple millions, would have to pony up £56.25m between them to achieve her overall investment commitments.

Why would the Rangers board stump up?

They wouldn't. This is clearly a non-starter given the board have repeatedly stated they would front-load investment to get Rangers back into a shape where it was sustainable. With the player trading model finally operating properly with the sale of Nathan Patterson, Joe Aribo and Calvin Bassey, plus improved European revenue, Rangers are in solid financial health once again.

READ MORE: Can Rangers spend, spend, spend? - Club finances put under the microscope by business expert Kieran Maguire

For context, the Rangers Review understands that the Park family have already invested around £20m into the club while John Bennett has sunk in over £10m. In Bennet's case, that's more than TWENTY times what he was initially planning to put in.

Rangers discussed the bid at their board meeting on July 26 and concluded it "already has access to the resources and skills required to execute its business plan".

So is that it then?

Not necessarily.

As already stated, Rangers shares are available to anyone who wants to buy them if a price can be agreed.

Dave King has stated he wants to sell his stake in the club and is currently the largest shareholder. He is in the process of selling his shares at 20p to fan group and investment vehicle Club 1872 but given the size of his holdings, that will take significant time.

Would King be interested in selling his shares to an investor outside what might be considered the Rangers family?

King agreed to sell his shares to Club 1872 in December 2020, giving them a three-year period to raise funds. Branding the sale 'Never Again' in reference to the events of 2012, he urged supporters to get behind the drive and allow Club 1872 to become the biggest shareholder. The supporters group last announced a share purchase in April but it seems they will now be extremely unlikely to buy King out by the end of the three-year period. The shares are being bought at 20p, an amount that the businessman states will result in a personal loss. That figure is half the 40p offered by Fox in her discussions with Bennet.

So what's Darius Campbell (formerly Darius Danesh) and his recent death got to do with this story?

Darius Campbell (Image: SNS)

This is where things get strange.

Firstly, the Glaswegian singer sadly passed away recently aged just 41 and is therefore unable to account for events himself.

A business associate of Fox with whom she had a non-disclosure agreement, Gordon Dickson, has claimed in court documents he was passed on the investor deck using club branding by the businesswoman to look at with the idea of becoming involved. At this point, knowing little about Scottish football, it is claimed the deck was sent by Dickson to his colleague Campbell who would "be able to provide me with strategic feedback regarding the Rangers".

Fox claims: "Without informing me beforehand, Mr. Campbell then shared the draft deck with his cousin in Scotland, which is how I believe it came to the attention of the Rangers board." This has been a juicy tabloid morsel and understandably gained significant media attention given how recently the shocking news of the former pop star's death has been headline news.

What do Rangers say about the Darius Campbell link?

Rangers, through their lawyer, say: "KRF Capital protests too much, outlining the circuitous route that the Investor Deck took from Fox, to her friend Gordon Dickson, to a musician named Darius Campbell, to Mr. Campbell's unnamed 'cousin in Scotland'."

They add: "The trajectory that Fox desired for the Investor Deck is no longer relevant, because, as KRF Capital admits in its Response, the Investor Deck - through 'third-party forwarding' made it all the way from the United States to Rangers' Board in Glasgow."

What has Kyle Fox said?

She is adamant that she didn't send the investor deck to anyone but Dickson, stating: "I have never sent the draft slide deck to any potential investor. The only person with whom I ever shared the working draft deck was Gordon Dickson, a businessman I collaborate with from time to time on potential investment projects."

She adds: "It is unfortunate and highly disappointing that in the year 2022, women who dare to participate in the previously male-dominated world of finance, venture capital and sports ownership are still subjected to unfair and baseless bullying tactics like those being employed by the all-male Rangers board."

What does Fox suggest she could bring to the club?

In an email to John Bennett, Fox described what she would look to bring to the table as follows:

1. Fan engagement

2. Community outreach

3. Enhancing sponsorship and advertising revenue

4. Layering in: streaming revenue, gaming, data, augmented and virtual reality experiences

5. Second phase: develop - e-sports and gaming to facilitate a global outreach and achieve (sic) a scaling viewership and fan base globally

One of the key elements of KRF's plan appears to centre around what is loosely termed 'web 3' technology.

Okay, what's 'Web 3'?

It's a loose term for the next phase of the internet with an emphasis on decentralisation and blockchain technologies (like cryptocurrencies). It's an idea ridiculed by some while others laud it as the future with massive growth potential.

So what would that mean for any investment?

In an exhibit document used in the court case, KRF cites the metaverse, 3D streaming, AI cameras, e-sports, and NFTs (Non-Fungible Tokens) as central to the plan to "layer in" technology.

Much of this kind of technology has been highly controversial, with sketchy performance. Trying to find a fan who can explain what an NFT actually is might be a challenge, prompting the question to be posed of how their use might revolutionise financial performance. You only have to look at Rangers' disastrous partnership with the now-defunct SportemonGo to see the potential volatility and downsides of dealing with Web 3 businesses.

KRF claim in their investor deck: "AI cameras, 3D steaming, data analytic, mobile apps, NFTs, push notifications can transform fans' experience and thus organisation revenue."

What does the contested investor deck look like in terms of content?

To these eyes, very rough indeed from a visual point of view and lacking much tangible detail. The second page features a squad picture from Steven Gerrard's early days in charge and includes long-departed stars Daniel Candeias, Jon Flanagan, Jamie Murphy and Ross McCrorie. A section on player transfers features the image of Eduardo Herrera. 

Where does this leave the potential for Fox's bid?

Whether the ongoing legal troubles will put her off from attempting to buy shares in the open market remains to be seen. Fox states that she has already "deferred" talks with a "large Rangers shareholder" until the legal issues are resolved.

Isn't the club open to investment?

Rangers is currently, to all intents and purposes, in fan ownership with the club in the hands of people who are died-in-the-wool supporters. While investment opportunities will always be investigated as part of the organisation's due diligence, directors at Rangers are understandably hostile to the notion of the club ever falling into the hands of those who don't have its best interests as a sporting institution at heart.

That's not to say investors are unwelcome, quite the contrary. The Rangers Review has been told there's always an opportunity for individuals to get involved with the club - they just have to fit the criteria and have a shared vision. Of the current investors, all are committed to the long-term with only King looking to sell his shares.

From 2012, supporters lived through a situation where the club was used as a cash cow by people who didn't care about its traditions of success and excellence on the field. Without the emotional attachment of long-term fans, any investment from venture capitalists will always be about the chance to make money first and foremost. Fans will have to ask themselves if that seems a wise decision for the future given the bitter and difficult battles already won to reach this point.