RANGERS are expected to be landed with a legal bill of up to £500,000 over a fight with Mike Ashley's Sports Direct through the courts over the rights to sell merchandise.
The club were told by a High Court judge that it should pick up the vast majority of Sports Direct's £350,000 legal bills over the dispute as well as it's own £185,000 costs.
That's after the court was told that Rangers were now negotiating a new deal to sell club merchandise with Sports Direct following an out-of-court settlement.
The court heard that bosses at Rangers wanted to sign a new deal with a third party but Sports Direct International Retail Services executives objected and said they should have a chance to match any new offer.
Mr Justice Phillips said Rangers had accepted claims made by SDI bosses.
"You are going to get your new contract with Rangers," he told lawyers representing SDI, owned by Mr Ashley, who is also Newcastle United owner and a former Rangers shareholder.
"I would really have thought the time has come to try to make peace."
He added: "You have succeeded in matching and you are proceeding to a new contract."
Sports Direct's holding company went to the High Court in London where they obtained a temporary order which stopped the club selling the new strips made by Danish sportswear firm Hummel.
The injunction applied to the three new kits launched by the Glasgow club last week - one blue, one mainly white and one orange.
Sports Direct had claimed Rangers were in breach of a contract as they have not allowed the company to put in a bid to market and distribute the strips.
Mr Justice Phillips on Monday heard how the deal, which allows a company in the Sports Direct group to sell replica Rangers kits and other branded products, was expiring.
He had been told that bosses at Rangers wanted to sign a new deal with a third party but SDI Retail Services executives objected and said they should have a chance to match any new offer.
The judge had been due to analyse evidence about the meaning of a contract clause at a High Court trial in London on Monday.
But lawyers representing both sides told him that the out-of-court agreements had been made.
The judge was told that more than £500,000 had been spent on lawyers, with SDI running up legal costs of £350,000 and Rangers £185,000.
Mr Justice Phillips said Rangers' bosses should pick up the vast majority of SDI's legal bills as well paying their own fees, adding SDI was "entitled to the costs".
William McCormick QC, who led the Rangers' legal team, complained the £350,000 spent by SDI was "way over the top".
Lawyers representing SDI disagreed.
Bosses at Rangers were involved in a High Court dispute with Mr Ashley in 2017.
SDI bosses complained Rangers' directors had wrongly terminated a deal through which branded products were sold.
Rangers' directors disputed the claim and asked a judge to call a halt to the litigation.
The club's Hummel kit launch promo
Judge Richard Millett made a ruling in Mr Ashley's favour and decided the litigation could continue.
Mr McCormick told Judge Millett how fans had become angry after learning the club got about 7p of every £1 spent and had staged a merchandise boycott.
He said fans thought Mr Ashley pocketed too much of their money and said there was a widespread view that no "self-respecting" Rangers' supporter wore a replica shirt.
Mr Justice Phillips was told the boycott is over.
Two weeks ago Rangers chairman Dave King hit out at Mr Ashley as it emerged the club was engulfed in a new dispute over the sales of merchandise.
Mr King said: We still hear and receive complaints about Sports Direct’s performance as our retail partner despite the overall settlement agreement that we reached last year.
"Communication with them remains difficult and, having initially indicated their desire to deal amicably with the transition and handover, we are now back in court with the uncertainties that entails.
"The board will continue to do what is best for our club and supporters and seek to minimise any disruption."
At the end of June, last year, Rangers announced that Mr King's dispute with Mr Ashley was over while confirming a new one-year kit deal with Ashley's retail firm has been agreed.
It meant a seven-year merchandise agreement - which reportedly earned Rangers seven pence from every pound spent in club shops - was ripped up.
Mr King then hoped the deal would encourage supporters to end their kit sale boycott and provide a major financial boost as Rangers aim to challenge for the Scottish Premiership title.
"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," the club said.
"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.
"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."
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