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Elite accused of withholding £2.5m from hard up Ibrox club

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The club from has been given relief from a Sports Direct injunction to challenge Elite/ for almost £2.5m of unpaid commissions.

Earlier this month the case was back in the High Court as the club requested permission to negotiate a kit deal for next season after the three year deal with /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 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 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 club.

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Tonight it is reported that transfer target Alfredo Morelos is an injury doubt for the home match against Ross County.

CLICK HERE to read the full ruling.

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