Rangers announce new kit deal as Dave King and Mike Ashley settle dispute
Wednesday 21 June 2017 17:19, UK
Dave King's dispute with Mike Ashley is over after the Rangers chairman announced a deal has been struck with the Sports Direct businessman.
The Ibrox chief called a surprise press conference on Wednesday to confirm a new kit deal with Ashley's retail firm has been agreed.
It sees the current seven-year merchandise agreement - which reportedly earned Rangers seven pence from every pound spent in club shops - ripped up and a new 12-month contract put in place.
King hopes the deal will encourage supporters to end their kit sale boycott and provide a major financial boost as Rangers aim to challenge for the Scottish Premiership title, after rivals Celtic won it by 30 points last season.
"The Rangers Football Club Limited (TRFC) and Sports Direct (SD) are pleased to announce that they have terminated all prior agreements between them and entered into a new commercial arrangement on terms substantially different from the terminated agreements," read a statement on the club's official website.
"As part of the new arrangements, the Rangers Retail Limited (RRL) joint venture between TRFC and SD has ended and, going forward, TRFC will deal directly with SD.
"The negotiations between the parties have been protracted and have not been smooth. In that regard, TRFC and SD thank Puma for its assistance and patience during a period that has been difficult for them as official kit supplier to the club.
"TRFC has also expressed its thanks to SD for its willingness to restructure the arrangements between the parties.
"TRFC recognises that SD entered into legal agreements with a prior board at a time in the club's history when the future was very uncertain. SD's willingness to restructure the relationship reflects confidence in the way the club is now being managed.
"For obvious reasons it is not the practice for the details of commercial arrangements to be made public. However, in view of the publicity surrounding the previous agreements and the resultant boycott by supporters of kit purchases we consider it appropriate to give supporters some insight into the new arrangements.
"TRFC will now receive by far the majority of net profits from the retail operations at the Megastore and Webstore together with an equal share of all net profits from sales through SD. TRFC will also obtain a priority dividend on the winding up of RRL.
"The new deal will deliver real value for TRFC and SD. Supporters now have certainty that any money they spend on Rangers products will be hugely beneficial for the club.
"Both parties are delighted to achieve a successful resolution to the issues that have previously marred the relationship between them and bring an end to the protracted and costly litigation.
"TRFC and SD hope that the new arrangements will be long standing but there is no longer a fixed commitment on that front."
Stay tuned to Sky Sports News HQ - channel 406 - on Friday for details of the key Scottish fixtures for 2017/18 as the clock strikes 9am and keep up-to-date on the move on skysports.com and via the Sky Sports apps.
