The club from Ibrox has been given relief from a Sports Direct injunction to challenge Elite/Hummel for almost £2.5m of unpaid commissions.
Earlier this month the case was back in the High Court as the Ibrox club requested permission to negotiate a kit deal for next season after the three year deal with Hummel/Elite was cancelled by a previous court ruling.
Hummel/Elite had anticipated a lucrative three year deal but with Dave King falling foul of Sports Direct the volume of sales has been nowhere near those projected with a two year deal of little use to the sportswear firms.
In a four page ruling today the Ibrox legal team were given the go-ahead to challenge Hummel/Elite for lost sales but that seems certain to be met with a counter claim with the termination of the three year deal likely to be the first item of dispute.
The report states:
Under the Elite/Hummel Agreement Elite was required to pay an Annual Fee and Royalty Payments to Rangers. The base Annual Fee was £2 million for the purchase of 1-100,000 units and the Agreement made further provision for the payment of certain royalties based on global wholesale sales. It is Rangers’ position that at the time the Injunction was granted sums totalling £960,236.75(includingVAT) had not been paid by Elite. The Court was not informed of this at the time and nor was SDIR aware of it. Since the grant of the Injunction Rangers say that a further £1,470,000 (including VAT) has become due under the Elite/Hummel Agreement and has not been paid by Elite. Although Elite has paid some monies to Rangers the vast majority of the sums claimed are still said to be outstanding. I will assume for the purposes of this judgment that Elite does owe monies to Rangers under the Elite/Hummel Agreement
No ruling has yet been made on the many millions of pounds owed to Sports Direct for the breach of contract that ended their retail and merchandising deal with the Ibrox club.
[ad_pod id=”rezonence”]
Tonight it is reported that transfer target Alfredo Morelos is an injury doubt for the home match against Ross County.
It’s certainly not an overturning of the previous judgment, just allows Rangers to collect money owed from this year’s merchandise agreement, subject to any court action from Elite) Hummel.#Fin
— James Doleman (@jamesdoleman) January 29, 2020
CLICK HERE to read the full ruling.
