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Rangers to disclose kit sales after Hummel sues

Ibrox, Rangers (DBG)
Court order: Rangers (pic: Terry Murden)

Rangers have been ordered to reveal how much they have made from kit sales after being sued by former supplier Hummel for £9.5 million.

Elite Sportswear, the Danish firm behind the kit manufacturer, launched proceedings at the Court of Session in Edinburgh with the compensation claim for lost sales.

It is understood the claim relates to shops on Argyle Street in Glasgow and in Belfast, as well as online.

The case comes in the wake of Rangers signing a £20m five-year deal with the Andy Murray-backed sportswear clothing company Castore in May 2020.

Lawyers for Elite say this breached a contract signed in 2018 which allowed Hummel to supply kits to the Glasgow club.

Elite’s case arises from a separate legal dispute involving Rangers and Sports Direct, which was then owned by Mike Ashley. Lawyers for Sports Direct went to the High Court in London wanting an injunction to stop the deal between Elite and Rangers from going ahead.

In October 2018 it was ruled Rangers breached the terms of an agreement made with a company in the Sports Direct group. In that judgment Mr Justice Teare ruled the club made a new deal with Elite Sports Ltd, thought to be worth £10m, without giving Sports Direct a chance to match it.

Despite that, Rangers entered into a new deal with Castore.

David Thomson KC told Lord Braid: “In September 2018 the parties entered into a contract for Elite Sports to supply Hummel kits and replica kits and had worldwide rights to distribute Rangers-related products.

“The decision in London by Mr Justice Teare in October 2018 resulted in the business not performing its obligations as part of the contract.

“It is clear to me that Rangers entered into this contract and have failed to perform.

“We are seeking loss of profit suffered by the pursuer for season 2018/19, 20/21 and up to and including September 2023.

“It is the pursuer’s case that the rug was effectively pulled from under them. It is clear that Rangers entered into an agreement which they didn’t perform.

“The amount being sought is currently based on an estimation of sales. If the relevant figures are produced it will allow the claim to be more specific.

“I would ask the court to allow my motion for commission of diligence.”

Gavin MacColl KC for Rangers argued against the motion, asking Lord Braid not to grant permission for the Castore sales figures to be released as the nature of the deals was different.

Lord Braid ruled that Rangers must disclose their figures, saying: “I accept Mr Thomson’s submission that it is relevant to look at what the market was and the sales figures for Castore.”

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