Rangers could still be sued by Elite Sports Group as administrators meet with lawyers
Rangers could still be sued in their £9.5million court case with the Elite Sports Group, despite the distributor going insolvent, according to the Scottish Daily Express.
The Ibrox club is facing civil court action over claims they breached their contract in relation to the provision of the team’s kits, with administrators now set to meet with lawyers.
According to Kieran Maguire, the sports goods distributor has been placed into administration, and subsequently, administrators will be running the company instead of directors.
This in turn means that the company will be seeking legal advice on the case, with administrators looking at the pros and cons of the case “impassionately”, and if their lawyers stand a “good chance” of winning the case.
Ken Patullo, the managing director of Begbies Traynor, said: “The administrators will look at it impassionately and independently without any of the baggage that has gone on before between Elite and Rangers.
“They will just sit down with their lawyers and say do we stand a good chance at winning this?
“If they think they will do stand some chance. I think at some point the action will be settled, other than that Rangers will simply say you got no chance we will see you in court.”
Ongoing issues
There is never a dull moment at Ibrox, and even in a week full of positive news, there always has to be a dampener.
As Michael Beale is handed the reigns at the Glasgow club, there is yet another financial concern to keep an eye on.
With Rangers also facing legal action for not competing in the Sydney Super Cup, the lawyers of the club will not be short of work that’s for sure.
If Rangers were to lose the lawsuit it would come as a blow to them, as their spendings need to be focussed on the pitch right now instead of off it.
With the Gers looking to reel in the nine-point gap Celtic have over them during the second half of the season, every spare penny needs to be used to mould the squad to Beale’s liking.
In short, this court case needs to be resolved to avoid further financial shackles being placed on the new boss.
In other news, a member of Giovanni van Bronckhorst coaching setup is set to be given a Rangers lifeline by Michael Beale as images emerge.