According to a section of the club’s Annual Report, Rangers could still owe millions of pounds as their retail legal battles continue.
In May, the Gers announced up-and-coming British brand, Castore, as their new kit and retail partners on a long-term contract.
🆕 #RangersFC is delighted to announce Castore, the fastest growing premium British sportswear brand, as its official kit and retail partner from the 2020-21 football season.#BetterNeverStops | #ANewEra
— Rangers Football Club (@RangersFC) May 17, 2020
The deal was hailed as a new era for the club, which appeared to be leaving the Sports Direct and Hummel problems in the past.
However, it seems that Rangers aren’t out of the woods just yet.
As highlighted by football finances expert, Kieran Maguire, a section of the club’s Annual Report labelled ‘contingent liabilities and provisions’, addresses their legal battles with SDI Retail Services Limited.
‘The company is engaged in ongoing legal proceedings relating to its retail arrangements,’ reads the beginning of the section. ‘Judgment has been granted against the Company in respect of certain breaches of contract but, at this stage, the extent of the Company’s liability other than with regard to legal fees has not been decided by the Court.’
At this stage, while ‘negotiations are ongoing’, it’s clear that Rangers are unwilling to give away too many details regarding the case.
An amount of £3,150,000 is provided as ‘the directors’ best estimate of the Club’s liabilities in respect of these disputes.’
Crucially, though, it’s later conceded that ‘the amount provided may be less or more than the sums at which matters are ultimately resolved. ‘
Rangers have a possible sum due to Mike Ashley's Sports Direct, reluctant to say how much worse case scenario is until it is resolved but have put in possible £3m but could be more or less. pic.twitter.com/oAQJ29IpwF
— PriceOfFootball (@KieranMaguire) November 20, 2020
It will no doubt come as a disappointment to Rangers fans that the club is still suffering for mistakes made around previous kit deals.
£3 million is obviously a considerable sum of money and there’s clearly potential for the final figure to be even higher.
However, many supporters are appreciative of the remarkable commitment being shown by the board of directors to steer the club through the current challenging climate and with revenue figures up, there are some positives to come out of this report too.