Rangers are set to raise an action of close to £3m against Elite Group for unpaid fees for retail operations carried out on behalf of the club.
A court order recently confirmed that Rangers could go after Elite for the money amid an ongoing retail debacle centred around Sports Direct.
After releasing an earlier statement saying Rangers hoped Elite would come forward and part with the money owed, Rangers have now been left with no choice but to raise the action.
“The Rangers Football Club Limited (Rangers) has served proceedings on LBJ Sports Apparel Limited trading as Elite for payment of the sum of £2,840,236.75 plus interest and expenses,” reads the statement [Rangers].
“The payment relates to sums that require to be paid to Rangers by Elite in terms of the Agreement between Rangers, Elite and Hummel A/S for the manufacture and supply of Rangers Kit and other products.”
The decision to raise the action comes after Rangers were given the green light to request the fees following a High Court decision from Judge Lionel Persey QC.
A court ruling back in July ordered Rangers not to use the Hummel/Elite Group agreement concerning the club’s retail operations from next season after they were adjudged to have breached a contract with Sports Direct by not offering SDI first option on a kit deal [Scotsman].
But the Judge ruled that this would not impact the club’s right to go after Elite for the money owed to them for the retail operations of the last two seasons
“Rangers will not be in breach of the Injunction should it seek (whether by court action or otherwise) to recover sums said to be due to it under the Elite/Hummel Agreement,” said Judge Lionel Persey QC [Scottish Sun].
Rangers then released a statement saying they were pleased with the verdict and hoped Elite would part with the funds.
“Rangers is pleased with yesterday’s Judgment at the High Court and hope it will now lead to Elite clearing the outstanding payments to Rangers referred to in the Judgment,” read the statement [Rangers].
The Ibrox club will be hoping this matter can be settled out of court to avoid further court battles concerning the club’s retail.
Supporters will be hoping that the matter can finally be resolved so that Rangers can get back to operating a retail arm in a similar vein to most other football clubs.