Lowdown on the new £9.5m legal case threatening the Clement Revolution!
Soccer Football - Europa League - Fans gather in Glasgow for the Europa League Final - Eintracht Frankfurt v Rangers - Glasgow, Scotland, Britain - May 18, 2022 Rangers fans react outside the Ibrox Stadium after Eintracht Frankfurt's Rafael Santos Borre scored the last penalty Action Images via Reuters/Lee Smith
Two days after publishing ‘an operating profit of £252,000’ news has emerged of another Court case with Sevco being chased for £9.5m plus costs.
Without Champions League football and with virtually no chance of a January transfer windfall the last thing that the club needs is an incoming bill for around £10m.
Elite Sport are looking for payback after the deal they negotiated to cut out Sports Direct through Hummel backfired spectacularly.
Sports Direct weren’t going to be outsmarted by Dave King, started legal action which delayed the launch of the new Hummel kit followed by a lengthy and costly defeat with a settlement struck once King had stepped down from his role as Ibrox Chairman.
Having lost out to Sports Direct in a related case it is hard to see how the current Ibrox regime can avoid another loss to Elite/Hummel.
An eight day summer time slot will be announced in December although there is always scope for an out of court settlement similar to the Sports Direct defeat.
As ever with these issues Rangers Tax Case can cut through the spin, both Ibrox clubs have a long tradition of losing legal battles, as ever they are confident that they have a strong case…
The Elite v Sevco lawsuit is still to go to court.
Elite are pursuing Sevco for £9.5m.The RIFC accounts yesterday did not make any provision for this case. A wee review of the facts.
— Rangers Tax-Case (@rangerstaxcase) November 15, 2023
In 2019, Sports Direct won a court injunction effectively tearing up Sevco’s contract with Elite.
Elite say they were blameless in this process and didn’t know Sevco weren’t free to enter into a deal. Elite wasted time and money spent setting up to execute.
— Rangers Tax-Case (@rangerstaxcase) November 15, 2023
I haven’t seen the commercial correspondence so I don’t know the facts, but Sevco would have won a summary dismissal if the case was so clear.
— Rangers Tax-Case (@rangerstaxcase) November 15, 2023
So yet another sizeable bill in the post to drain the Ibrox coffers. I suspect Sevco are only fighting this to delay payment as long as possible.
— Rangers Tax-Case (@rangerstaxcase) November 15, 2023