Rangers and Sports Direct back at High Court over merchandise to deal

Published 10th Oct 2018

Bosses at Rangers Football Club are embroiled in a fresh merchandise deal row with Sports Direct and Newcastle United owner Mike Ashley, less than three months after a High Court judge said both sides should try to make peace''. In a High Court hearing in London in late July, Mr Justice Phillips was told a dispute over the terms of the deal had been settled.

But lawyers representing the two sides were back at the court on Wednesday after Mr Ashley complained of a breach of contract by Rangers.

Bosses at Rangers dispute the complaint.

Mr Justice Phillips heard in July how a deal, which allows a company in the Sports Direct group to sell replica Rangers kits and other branded products, was expiring.

He had been told bosses at Rangers wanted to sign a new deal with a third party, but SDI Retail Services executives objected and said they should have a chance to match any new offer.

The judge had been due to analyse evidence about the meaning of a contract clause at a trial.

But lawyers representing both sides told him out-of-court agreements had been made.

The judge said Rangers had accepted claims made by SDI bosses.

He said Rangers and SDI were negotiating another deal, and added: I would really have thought the time has come to try to make peace.''

The judge was told more than £500,000 had been spent on lawyers, with SDI running up legal costs of £350,000 and Rangers £185,000.

Mr Justice Phillips said Rangers' bosses should pick up the vast majority of SDI's legal bills as well as paying their own fees, adding SDI was entitled to the costs''.