Rangers win £300,000 Wi-Fi legal battle
Rangers have won a legal battle to have a warrant recalled ring-fencing £300,000 of the club's money over a Wi-Fi dispute.
IT firm, 802 Works Ltd, were granted an arrestment warrant by a sheriff on December 31.
They claim the cash is to be paid out for an unpaid bill for a Wi-Fi system installed at the stadium and wanted the money ring-fenced in case Rangers become insolvent.
In the latest court hearing involving the club, sheriff Ian Miller heard from both sides at Glasgow Sheriff Court earlier this week, and saw documents of the club's latest figures.
He recalled the warrant and the arrestment of money and said he placed "particular weight" on the existence of a £6.5million loan given to the club and the profit and loss account.
The figures from July to December 2015 were lodged during the hearing, showing an improvement in the club's accounts.
The sheriff said that document "did change the whole focus of the hearing".
During submissions earlier in the week, counsel for Rangers, Christopher Wilson said that those investing in the club "would not stand by and let the club go under".
Delivering his judgment at the court sheriff Miller said: "It is right to take in to account this fact of the particular nature of the business, its present situation and willingness of those with deep pockets and affection for the club to keep it in business, at least for the foreseeable future."
The court heard the club has been given a £6.5million loan, interest free for two years.
The Wi-Fi providers, 802 Works claim the football club owe them the money because a £900,000 system was installed in January 2014 and the remaining balance hasn't been paid.
But, Rangers allege that the company breached the contract they had with them because the Wi-Fi is not fit for purpose, and that is why they have withheld the final payment.
They claim that the system does not have the capacity to be used by 50,000 people at the same time, but less than 10,000.
However, 802 Works say they are entitled to the money because the work was carried out and figures relating to how many people would be able to access the system was made known to Rangers.
Lawyers for 802 Works wanted the money ring-fenced to ensure payment if they win the civil battle, but the club goes into insolvency before then.
The court was told that Rangers "over a considerable period", has been operating at a loss of £7.5million per year.
Various accounts were lodged at the court including an audited report from October 2015 showing financial information for the previous full year until the summer 2015, and a document showing more recent figures taken from Rangers' account system.
The court heard there was a "significant improvement" during the most recent six months up until December 2015.
Yesterday sheriff Miller said the loss was "slightly under half a million".
These figures being lodged were objected to by the representative of 802 Works.
Solicitor advocate Simon Catto said the audited report showing a full years accounts and a loss of around £7.5million per year should be preferred.
He said:"These are the only documents that should be looked at when considering if there is a risk of insolvency."
Mr Wilson told the court that the sum sued for is two percent of the turnover.
He said: "The company is turning over that amount each week."
The court heard Rangers repaid the £5million loan from Sports Direct.
Mr Catto said that the defence that only 10,000 users could access the Wi-Fi in the stadium and that contributed a breach of contract was "feeble".
The court was told that it was "quite clear from documents" that it was obvious there was no intention that anything like 50,000 people would be able to use the system simultaneously.