To say that Rangers has not had an easy relationship with Sports Direct is perhaps an understatement.
The dispute between them continued on Monday with the High Court in London issuing a decision to the effect that Rangers was in breach of its contract with Sports Direct by agreeing a new kit deal with Elite/Hummel without giving Sports Direct the chance to match their terms.
The dispute, which arose against the backdrop of a fan boycott of Sports Direct’s sale of playing kit in 2014, had its most recent instalment in the High Court on Friday.
The decision in favour of Sports Direct is a good example of how a bitter dispute about each side’s intentions can ultimately be decided on a simple reading of the contract that was agreed between them.
READ MORE: Rangers face paying millions to Sports Direct in latest legal blow
In this case, Rangers’ views on the way the contract operated were not, according to the High Court, supported by the contractual terms.
The result is an injunction against Rangers, preventing it from seeing through its agreement with Elite/Hummel, with damages likely to follow.
Rangers’ objections to the injunction were not upheld.
The High Court held that there was no reason for the injunction not to be granted, that it didn’t damage revenue significantly, didn’t prevent fans from getting kit for the coming season and didn’t impair Rangers’ ability to function as a football club.
While Elite/Hummel’s supply of Rangers’ kit won’t be interrupted for the forthcoming season, the position is less clear thereafter.
Richard McMeeken is partner and solicitor advocate at Scottish independent law firm Morton Fraser.
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