SEVCO are set to set up a new retail contract with Sports Direct and PAY Mike Ashley’s firm £500,000 in legal fees after the latest court action with Mike Ashley’s firm.
News of the out of court settlement is bound to alarm some of the gullible who hailed Dave King as a genius for getting rid of Sports Direct last June.
In November it emerged that Sevco had paid £3m to get out of the old contract but earlier this month it was revealed that as part of the new contract Sports Direct were entitled to match any offer made by a third party.
Sevco tried to ignore that uncomfortable fact and found themselves on the end of an injunction delaying distribution and sales of their new Hummel kit.
Today both sides were back in court to solve the problem but it has emerged that the troubled Ibrox club have set up a new deal with Ashley’s firm.
According to The Sun Justice Philips told the Sports Direct legal team: “You are going to get your new contract with Rangers. I would really have thought the time has come to try to make peace.
“You have succeeded in matching and you are proceeding to a new contract.”
Sevco’s legal fees for this case had reached £180,000 with Sports Direct costing £350,000 with the third best team in Scotland ordered to pay all of the legal costs, plus VAT.
Whether Hummel has the kit available for sale remains to be seen but at an average price of £50 with a generous 20% going to the club it will take a full house at Ibrox wearing ‘iconic chevrons’ to pay the legal costs of Dave King’s latest defeat.
It remains to be seen of Hummel wish to stick with the contract now that they have lost the month of July in sales with Sevco fans unlikely to be buying in the same numbers from Sports Direct.
The third party, believed to be JD Sport are likely to look for compensation for Sevco failing to deliver the deal agreed.
Meanwhile Sevco are weighing up whether to increase their £200,000 offer for Kyle Lafferty.
After appointing Steven Gerrard King told selected reporters that there would be a £6m rights issue in June, not a button has yet been raised.
In a fortnight the South African based criminal will have to explain to the Court of Session in Edinburgh why he hasn’t complied with an order to offer 20p per share to shareholders outwith his concert party.