SEVCO Rangers chairman Dave King has been clobbered by a legal bill of over over £500,000.

A High Court judge says bosses at Ibrox and Sports Direct and Newcastle United owner Mike Ashley should “try to make peace” after being told a merchandise contract row had been settled.

Mr Justice Phillips had heard how the deal, which allows a company in the Sports Direct group to sell replica Sevco kits and other branded products, was expiring.

He had been informed Ibrox chiefs wanted to sign a new contract 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 today.

But lawyers representing both sides told him that out-of-court agreements had been made.

The judge said Rangers had accepted claims made by SDI bosses and both parties were negotiating another deal.

He told lawyers representing SDI: “You are going to get your new contract with Rangers. I would really have thought the time has come to try to make peace.”

The judge was told that more than £500,000 had been spent on lawyers, with SDI running up legal costs of £350,000 and the Ibrox outfit £185,000.

Mr Justice Phillips said Sevco 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 legal team representing the Ibrox club, complained the £350,000 spent by SDI was “way over the top”. Lawyers representing SDI disagreed.

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