Ashley steps up the pressure by forcing new gagging order on shameless King
Since taking control of the blue room in March the South African based businessman has been banging on about the unfairness of the deal between the club and the sportswear giant. Sevco owe Sports Direct £5m.
Running in parallel a series of damaging stories have leaked out of Ibrox that are highly critical of Sports Direct and the self-made tax paying billionaire Mr Ashley.
When the Daily Record ran a story claiming that there was a seven year notice period on the contract Sports Direct went to the High Court in London and got a gagging order placed on the club preventing them from discussing the deal in public.
Days later 56% of the holding company shareholders voted against a motion to repay the £5m loan taken out from Sports Direct in January. That loan was taken out with security held over the state-of-the-art Murray Park training complex, the iconic Albion Car Park with the club trademarks and IP rights also surrendered to Sports Direct.
King’s constant undermining of Sports Direct appears to have snapped the patience of Mr Ashley whose former colleague Deek Llambias was kicked out the club as part of the shameless revolution in March.
Shortly before that vote Mr Llambias, in a rare media interview, asked where the money was coming from and who would be Mr King’s Nominated Adviser. Shortly afterwards Sevco were booted off the Alternative Investment Market with the South African based businessman still to invest a penny.
According to today’s Daily Record Mr King, Paul Murray and John Gilligan have also been served with papers enforcing the gagging order.
On the day of the revolution when he finally gained a cherished blazer Mr Murray stated: “I would personally like to take the opportunity to thank the Daily Record for its courageous journalism over the past four years – and officially confirm it is no longer banned from Rangers FC.”
Mr King, who was described as a glib and shameless liar by a South African judge, made a low key visit to the club last week, during which he again attacked Sports Direct.
At the heart of last week’s rant Mr King revealed: “Sports Direct continues to litigate with the Club in an attempt to enforce its wishes and demands. This seems based on the simple logic that Sports Direct can outspend the Club in legal fees and thereby deal with the Club as it pleases.
“I assure supporters that the Club will not be cowed by this threat and the recent lack of communication (as a result of the gagging order) belies the level of robustness with which the Club’s interest has been and will be protected.”
Incredibly Mr King added: “Furthermore, I have sent letters to Sports Direct in my capacity as a director of Rangers Retail Limited taking them to task for poor business practices and corporate governance failures.”
It seems that that slur could have pushed Mr Ashley over the edge and determined to expose Mr King after a year long sniping campaign.
By slapping in a demand for repayment of the £5m loan Sports Direct could push the club into administration. Ashley seems reluctant to take the blame for that and is intent on exposing the empty promises of King at every turn.
Next Thursday Charles Green returns to court to claim his legal expenses from the club he formed in 2012. The legal bill contesting that case and likely defeat could push the holding company towards administration.
On the park Mark Warburton is hoping to complete a deal in the next 48 hours to bring in former Derby County powerhouse John Eustace to shore up his side’s faltering promotion campaign.