Rangers bid to end shirts deal with Sports Direct
Wednesday 18 May 2016 13:25, UK
Rangers have begun a process to terminate the contract with the merchandise company they run with Sports Direct.
The Ibrox club own 51 per cent of Rangers Retail Ltd (RRL), with Mike Ashley's Sports Direct in control of the rest of the joint venture's shareholding.
But Gers chairman Dave King and the rest of the board are deeply unhappy with the arrangement.
It reportedly earns the Ladbrokes Championship winners just four pence from every pound spent in their club shop.
As a result, supporters have refused to buy the club's official merchandise.
King has tried on several occasions to renegotiate the deal but has been rebuffed at every turn by Newcastle owner Ashley.
Rangers have already triggered the seven-year notice period required to cancel their ties to Sports Direct but now club chiefs hope to expedite the process.
They have notified Ashley they are ready to take back control of the intellectual property agreements - which include the right to sell products bearing the club's crest.
It is likely the matter will lead to yet another costly face-off in the courts, although Press Association Sport reports the club are confident they have grounds to tear up their RRL agreements.
In a statement, the Ibrox outfit said: "The Rangers Football Club Limited has today served notice on Rangers Retail Limited terminating the IP Licence and Rights Agreement with that company with immediate effect.
"The club now needs to speak to its commercial partners to agree the next steps flowing from the termination and will make no further comment on this matter whilst discussions are ongoing.
"The club will endeavour to communicate further with its supporters and customers for Rangers Kit and other Rangers products as soon as it is in a position to do so."
Ashley owns 8.92 per cent of Rangers but could be forced to relax his control of the club's commercial activities following Newcastle's relegation to the Sky Bet Championship as the Football League operates stricter rules on dual ownership than the top flight.
