Rangers settle multi-million pound kit deal dispute

Castore have a deal to produce and sell Rangers' kit until 2025

Rangers have settled a dispute with the administrators of a sportswear brand in a row over the Ibrox club’s kit.

Elite Sports Group Ltd were seeking £9.5m in compensation over an alleged breach of contract.

The firm, which went into administration last year, produced Hummel kits for the side but claimed Rangers agreeing a separate deal with Castore in March 2020 violated the terms of that arrangement.

An eight day case was expected to begin at the Court of Session in Edinburgh on Tuesday, but has now been settled for an undisclosed sum.

The case brought by Elite arose from a separate legal dispute involving Sports Direct and Rangers.

Lawyers for the company, then owned by the former Newcastle United owner Mike Ashley, went to the High Court in London to prevent the deal between Rangers and Elite from going ahead in October 2018.

The agreement was meant to allow Hummel, through Elite, to supply Rangers with kit and sell replicas to fans.

Judge Lionel Persey QC found the three-year contract with Danish manufacturer went ahead without Sports Direct being given the chance to match it.

It was ordered the club could not “wear any Official Rangers Technical Products designed by, supplied by, gifted by or manufactured by Elite or Hummel, or bearing the Hummel brand”.

Elite Sports Group Ltd produced Hummel kits for Rangers between 2018 and 2020

In March 2020, Rangers agreed a new deal with Castore, said to be worth £20m over the next five seasons.

The Manchester-based brand, which counts tennis star Andy Murray among its investors, was valued at being worth £750m in September 2022.

Lawyers for Elite won a bid to have sales figures on Castore products disclosed to them.

They told the Court of Session on an earlier occasion that this new deal caused Elite to sustain losses, which it needed to be compensated for.

However, before the case was due to begin, both sides met for further negotiations.

Lord Braid allowed for talks to continue until 13:30.

When they returned to court, they said there was no need for the case to go ahead.

Elite’s lawyer, David Thomson KC, told the court that a further hearing may have to take place next week although there was no guarantee that it would happen.

He added: “It is hoped that it won’t be required and if it is required it will be a formality.”

Lord Braid formally discharged the hearing.