The administrator for Elite Sport has been told to pay up £350,000 in advance in order to continue with their claim for £9.5m in lost income from The Ibrox Tribute Act.
In the summer of 2018 Dave King set up a three year retail and merchandise deal with Hummel but almost instantly found it undermined by Sports Direct for breach of contract.
After years of resistance the club reached an out of court settlement with Mike Ashley’s firm that has never been disclosed.
Elite Sport was the UK arm of Hummel, after a variety of disputes and issues that hammered the expected sales they pulled out of the deal after two years and launched an action against the club for failing to deliver on their part of the contract.
Despite being in administration Elite are continuing the action to recover their lost income.
The Scottish Daily Express website ditched football content more than a year ago but their pro-union, pro-Ibrox stance continues on their news pages:
A judge has ordered the administrators of a sports wear brand embroiled in a kit sales dispute with Rangers to pay a £350,000 legal bond to cover the club’s legal costs. Lord Braid ordered lawyers for Elite Sports Group Ltd to pay the sum ahead of its Court of Session action against the club later this year.
The judge made the decision at Scotland’s highest civil court after hearing legal submissions during a procedural hearing on Wednesday. Elite’s lawyers are pursuing an action against Rangers and are trying to recover £9.5 million from the Glasgow side.
Elite were the exclusive brand partner to Danish sportswear firm Hummel and it instructed lawyers to go to the Court of Session in Edinburgh last November. Lawyers claim the club breached a contract which allowed the firm to provide the Glasgow team to provide it with kits.
Lawyers for Elite say the breach occurred when Rangers signed a deal with Castore, a Manchester based brand which counts tennis ace Sir Andy Murray as one of its major investors. However, Elite went into administration shortly after the case called in Scotland’s highest civil court.
The administrators for the firm are pursuing the action at the Court of Session in Edinburgh. On Wednesday, Rangers’ advocate Gavin MacColl KC asked for Elite to lodge a £440,000 caution with the court. Caution is the Scots law term given for a payment made into court to provide cover for legal expenses.
Having continued the case to this stage a £350,000 deposit for a £9.5m claim seems like fair value.
If the case continues it will cast something of a cloud over Phil Clement’s summer spending spree and explain the hype attached to the Jack Butland, James Tavernier and Connor Goldson moonbeams.
Despite being part of the Reach Group with the Express the Daily Record has refused to touch this potential bad news story.
Aye They like their courts do Sevco…
Hopefully it’s held in England as Scotland seems corrupt in favour of that football club that’s as of today 11 years and 278 days old…
Always nice to remind Sevco and Sevco fans and Sevco Scummy Scottish Football Media fans of their age somit is !!!!
I think you’ll find Inaction Jackson was getting a tad confused about the worth of Mr Butland ? The ‘ north of £10 million estimate was probably in Venezuelan Bolivars? The country with the highest rate of inflation on the planet – today – ….some 200% national rate ! Arriba …arriba !
As long as the lawyers get paid…
You have to speculate to accumulate. Hopefully this goeas all the way!
If an administrator hoovers almost 80% fae their clients pot then its a slam dunk case (;-0)
HH
The Celtic support could haud a whip roon for Elite just to make sure….Mon the Hoops…