The board of Manchester City will meet today as the race for control of the Barclays Premiership club enters a critical phase. Talks regarding a possible £70 million takeover have been going on for a couple of months, with a British-based consortium led by Ray Ranson, a former City player and wealthy entrepreneur, rivalling unnamed United States investors.

While there is interest from other parties, including a second overseas investor, the Americans are understood to be favoured by the club, although the situation is complicated by the financial circumstances of John Wardle and David Makin, the majority shareholders.

Wardle, the City chairman, and Makin, a former business partner with whom he founded JD Sports, the retail giant, are owed about £23 million in loans by the club. With their loans repaid and 29.95 per cent shareholding worth about £5.4 million, the pair stand to earn as much as £30 million from any takeover.

In effect, it means that two deals must be struck with a potential investor, one that satisfies Wardle and Makin for payment of their loans and one acceptable to all shareholders.

City’s share price rose from about 25p to 33p to value the company at about £18 million after an announcement on Thursday that the club were in “preliminary discussions” that “may or may not lead” to an offer being made. It makes for a highly sensitive situation that Wardle and Makin are aware could backfire on them. No one doubts that the pair have the best interests of the club at heart, but there is a belief in some quarters that they may have to accept a loss on their loans in the long-term interest of the club.

Highly regarded by many supporters, Wardle and Makin risk being cast as villains if they fail to strike a deal financially workable for an incoming investor. Of greatest concern to the club’s fans, however, are the intentions of the American investors who are thought to be leading the race, the identity of whom the club has kept a closely guarded secret.

The Times understands that the American bid is leveraged and could result in the club, who have existing debts in excess of £50 million, falling deeper into the red, a nightmare scenario for supporters who fear that the club could be saddled with a debt in much the same way Manchester United were when the Glazer family took over at Old Trafford.

That factor may play into the hands of Ranson, whose attempts to buy the club have been rebuffed and who failed with a £45 million bid for Aston Villa last summer. City are understood to have concerns about whether Ranson’s consortium has sufficient resources, but it is thought to be prepared to take on City’s debts and not saddle the club with additional debt.

It is also rumoured that Ranson’s consortium would clear Wardle and Makin’s loans while ensuring that all shareholders get value for money and provide an injection of funds towards new players, to create an international scouting system and invest in the academy.

WHO IS CITY’S SUITOR?

Ray Ranson, 46, started his football career with Manchester City, and appeared in the club’s 1981 FA Cup Final defeat by Tottenham Hotspur. He also played for Birmingham City, Newcastle United and Reading. After his career ended, he made a fortune in the insurance and sports finance fields. Last summer, he lost out in a £45 million takeover bid for Aston Villa to Randy Lerner, the American billionaire.