George Overhill

Thu 20 April 2023 20:10, UK

Rangers are facing a new financial blow with the news that a legal challenge over previous kit supplier Hummel is to go ahead, as per Scottish Sun.

It is 34-months and counting since Ibrox commercial director James Bisgrove called the new Castore deal a “clean slate” [Scottish Sun, 2 May 2020], but rightly or wrongly it is still providing unwelcome and potentially costly headaches.

Elite, the exclusive brand partner to past kit maker Hummel, had claimed for £9.5million in compensation in a dispute over the move to the new supplier.

But he company had gone into administration after the case was called to the highest civil court in Scotland, raising the possibility that the challenge would not continue.

Now, a lawyer acting for Elite’s administrators has told a the judge, Lord Braid, that they will go ahead with the case.

Bisgrove had also stated over two and a half years ago, primarily in relation to another legal dispute with Sports Direct, via Glasgow Times [9 August 2020]: “We have said before the legacy of the club and the previous relationships we have had from a kit and retail perspective are now behind us.”

That is clearly not the case, and it is the last thing Rangers need when the actual football side of the club is gearing up for a summer rebuild which is already going to put Michael Beale and company to the test.

The Light Blues are not thought to have the spending power of Old Firm rivals Celtic, despite big money being brought in during the past 12-months through player sales and European football.

For a club still recovering from the effects of the financial oblivion of a decade ago loans from board members are still a considerable ongoing factor, with £14.3million repaying such situations in the November accounts [Daily Record, 9 November].

And the new financial threat comes in addition to an £8.25million payment to Mike Ashley to settle the related dispute with Sports Direct, as that legal battle ended with “immediate effect” on 11 May last year, and the eventual cost coming to light in the annual report on 9 November.

It is obviously unhealthy to be paying out seven and eight-figure sums to deal with legal issues over equipment manufacturing when the club needs all the financial power it can muster to put together a team that can win the SPFL again, and have a chance of competing in the Champions League.

With Elite previously sought £9.5million in compensation, with this case now going ahead Rangers are likely now at risk of a significantly higher amount should they be found against, and once legal fees are all factored in.

So unless the club are confident of winning this case, or can settle for significantly less than they did to pay off Ashley just ender a year ago Rangers will be in line to have forked out at least £17million on two related legal fights.

These may be battles that Bisgrove has inherited but his claims that the problems were in the past are proving well out of date.

In other Rangers news, Stewart Robertson’s assurances have proven worthless as another “£30million” has been lost.