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‘Rangers’ face bill for ‘many millions of pounds’ that will effect their ‘ability to function as a football club’

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The club from Ibrox face a bill to Sports Direct that will ‘be in the order of many millions of pounds’ that they told the court will result in ‘their ability to function as a football club will be impaired.’

After two years of disputes and breaches of a contract that they signed upto in the summer of 2017 the end game is finally nearing for Dave King’s regime after Sports Direct lost out in order to fund the Pedro and Gerrard Revolutions.

A 28 page ruling has been published today that is virtually wholly in favour of Sports Direct providing a classic case of breaking corporate governance.

The last hearing was at the end of May with today’s verdict published with two devastating passages.

PAGE 26 POINT 92

If relevant, I am satisfied that damages are not an adequate remedy for Rangers’ breaches. SDIR’s losses are likely to be in the order of many millions of pounds.

Rangers has pleaded in that it will rely upon clause16.3 of the Non-Exclusive RightAgreement to limit its damages to £1,000,000.

I accept SDIR’s submission that it would be unjust to deprive SDIR of the benefit of its matching right provisions.”

PAGE 27, POINT 94

Rangers assert that an injunction should not be granted because:-
(1) It will lose significant revenues and will be exposed to claims for damages from Elite.
(2) The club, players and fans will be unable secure kit and other products; and
(3) Rangers’ ability to function as a football club will be impaired.

Part of the claim from Sports Direct will ban the sale of the Away and Change kits for this season and next.

With a bill for many millions of pounds on it’s way to Ibrox it is clear to see why Steven Gerrard has been anxious to talk up interest in Alfredo Morelos, James Tavernier and Andy Halliday in the hope of being able to pay the Sports Direct bill.

Close Brothers have a security over Ibrox which can be called in at any stage, on the back of this ruling it’s likely that Hummel will be reviewing their contract with the club from Ibrox.

CLICK HERE to read the full judgement.

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