Rangers face another off-the-pitch battle as administrators speak to legal advisers over £9.5m case - Finance Expert
Rangers are facing an off-the-pitch battle as administrators are currently speaking to legal advisers regarding the £9.5million case involving Elite Sportswear Ltd, according to Kieran Maguire.
The group are proceeding with their legal case against the club after suing the Gers last November over lost kit sales.
Elite, the exclusive brand partner of Hummel, lodged court papers to challenge the decision from Rangers to switch from Hummel to Castore in 2020.
“Rangers have got another battle off the pitch,” Maguire said on The Price of Football podcast (29m20s). “Rangers had a dispute with Mike Ashley, there’s effectively an ongoing boardroom squabble because the former chairman Dave King is constantly throwing darts at the current board.
“And Elite Sportswear – effectively Hummel’s distribution people – who went into administration a few months ago. Remember there was all this kerfuffle because there were clubs like Millwall, Coventry and others who weren’t able to sell kit because they didn’t have legal ownership at the time.
“One of the things that Elite Sportswear weren’t very happy about was that Rangers had switched their kit manufacturing deal to the new kids on the block in the form of Castore. And they felt that Rangers hadn’t necessarily given them due process. I think Hummel were entitled to match what was offered and they claimed that it wasn’t.
Subscribe to Football Insider TV now
“So the administrators are now saying, ‘Well, we’ve spoken to our legal advisors and we think there is a case for going forwards.'”
The latest issue represents an unwanted distraction for the Gers off the pitch, with Michael Beale’s men currently trying their best to chase rivals Celtic on it.
That pursuit hasn’t gone so well in recent times, with the gap between the two old enemies now standing at 13 points.
It comes after the Gers lost 2-0 at Aberdeen on Sunday (23 April), with Celtic only managing a 1-1 draw at home to Motherwell the day before.
The two Scottish giants will meet at Ibrox in the Scottish Premiership in mid-May, with the Bhoys confident of wrapping up another league title.
But up first is a massive Scottish Cup semi-final clash on Sunday (30 April), with the pair going head to head at Hampden Park in a huge tie for Beale’s men as they look to finish the season on a high.
It hasn’t been the best league campaign, but many fans will be more than happy if the Gers can edge past their rivals in the semi-finals and go on to lift the prestigious trophy.