RANGERS have announced a truce with Mike Ashley over the sales of its merchandise.

The have announced a new one-year commercial deal with Mr Ashley's Sports Direct, which involves a share of net profits through their stores and the majority of net profits from retail operations at the megastore and webstore.

The club the agreement is "on terms substantially different from the terminated agreements".

Rangers chairman Dave King said that it is "the end of the dispute with Sports Direct" with litigation from both side terminated and each party paying their own costs.

"Supporters now have certainty that any money they spend on Rangers products will be hugely beneficial for the club," Rangers said on their website.

"The new deal will deliver real value for [Rangers] and Sports Direct. Supporters now have certainty that any money they spend on Rangers products will be hugely beneficial for the club."

The Herald:

It comes after a series of rows over the amount Rangers were making from the sales of merchandise - said to be just 4p in the pound - that led to a fans boycott of kit sales.

The deal lasts till the end of next season, taking the club to the end of its five year shirt deal with Puma, which has ended in controversy.  The club say they can then renegotiate "with Sports Direct or anyone else".

Last year Rangers appeared to have removed Puma and Sports Direct logos from their list of Rangers partnerships in the wake of the row over the trading of the club's merchandise.

Rangers in May, last year said it had withdrawn the exclusive licensing rights given to the Mike Ashley-controlled merchandising arm Rangers Retail to use the club's trademarks and it was believed that meant kit which contains the protected logos could not be sold.

Rangers now say they will now deal directly with the sports retailer, replacing the previous arrangement which was a joint venture between the club,Rangers Retail Limited (RRL) and Sports Direct.

"The negotiations between the parties have been protracted and have not been smooth," Rangers said in a statement.

The Herald:

"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.

"The new arrangements represent a fresh start for the Rangers Megastore, the re-launch of the Rangers Webstore and the sale of Rangers kit and products throughout SD's stores.

"[Rangers] 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. [Rangers] will also obtain a priority dividend on the winding up of RRL.

"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.

"Rangers has traditionally been one of the best performing brands in British football and the club believes the new arrangements can restore it to that position, providing funds to invest in the team and facilities at Ibrox and Auchenhowie.

Rangers has previously threatened to ditch the controversial Puma strip released without their consent and replace it with a new kit midway through the season, although this has not happened.

The Herald:

When the five year kit deal was announced in February, 2013, Rangers said it made the sportswear giant "the official supplier and licensee of replica merchandise for the club" in a deal that complimented Rangers Retail, which was set up under a previous Ibrox management.

Mr King in reading from what he said was a joint statement with Sports Direct said that the club and Mr Ashley's firm thanked Puma for it's "assistance and patience" as official kit supplier to the club.

He said the club also thanked Sports Direct for "willingness" to restructure the retail agreements.

Mr King said: "The football club recognises that Sports Direct entered into legal agreements with a prior board at a time in the club’s history when the future was very uncertain. Sports Direct's willingness to restructure the relationship reflects confidence in the way the club is now being managed."

Rangers Retail was unveiled in 2012 as a joint venture between Rangers FC and Mike Ashley's Sports Direct by then chief executive Charles Green.

Its aim was to enable Rangers "to once again control its retail operation and give supporters the chance to buy direct from the club and in doing so, continue to invest in its future".

But the Ibrox board voiced its displeasure about its return from the deal with Rangers Retail which held an exclusive licence to exploit the club's name and trademarks.

The club had already triggered a seven-year notice period to terminate the contract.

Sports Direct have been approached for comment.