Sevco have completed the same own goal as the old Rangers did with their disguised remuneration to players by providing Elite Group with indemnity (side letter) against litigation from Sports Direct.
The move echoes the side letters provided by Dave Murray to players at the old club, with the money guaranteed the Supreme Court ruled that it was disguised remuneration rather than discretionary payments into an Employee Benefit Trust.
Last month Justice Teare ruled in favour of Sports Direct in their action against Sevco for setting up a retail deal with Elite Group.
It appears that the Ibrox club were in dire need of cash, going to the extent of protecting Elite from legal action from Sports Direct for their role in denying Mike Ashley’s firm a slice of the profits from the blue pound.
THE RULING STATES:
Sports Direct only learned of the Elite Agreement on 25 September, after having seen a statement on Rangers’ website describing Elite as “our new non-exclusive partners”. It contained a warranty by Rangers that it has “all necessary rights to grant [Elite] the rights in this Agreement” and granted Elite an indemnity against suit by SDIR (which is specifically named) in relation to the agreement.
By providing Elite with an indemnity against action from Sports Direct Sevco were virtually admitting that at best their rushed deal was legally questionable.
Later this month Sports Direct will be awarded damages for their losses with Sevco still to honour the legal costs involved in taking the action.
In a separate legal action Dave King will be called to the Court of Session later this month to face charges of contempt for refusing to offer shareholders outwith his concert party 20p for each share they held in the stricken company in January 2015.
CLICK HERE to read the full ruling
