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Sports Direct, JD, Hummel contracts all in flux

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At the High Court in London yesterday, Mr Justice Phillips was told by both counsels that Newco Rangers had accepted claims by Sports Direct that they were entitled to match and retain any retail contract offered by a competitive organisation.

A clause to this effect was inserted in the agreement signed a year ago, which also saw Newco pay Sports Direct £3m to terminate their existing agreement this summer, while buying Newco shares owned by Mike Ashley at a premium price of 27p per share.

Apart from ordering Newco to pay Sports Direct costs, the judge declined to act, telling both parties to get on with it.  Although Newco have conceded their earlier position was wrong, much work has still to be done to effect the terms of the contract and put any new deal in place.

The mechanisms to bring about a new deal between Newco and Sports Direct are difficult.  The deal Newco apparently made with JD Sports to pick up retail operations from now is clearly in jeopardy, which could cause additional problems for the Ibrox club.

Justice Phillips told Sports Direct counsel, “You are going to get your new contract with Rangers (sic.),” but this is far from certain.

Newco will have to look at whatever contract they have signed with JD Sports, a contract they will have to terminate before they can even open discussions with Mike Ashley’s representatives.  A sticking point in this respect is likely to be non-disclosure terms.  JD cannot allow their direct competitor sight of their offer.

It would be more appealing to pay Ashley off, again, and do business with JD Sports, than offer JD Sports compensation for terminating a contract they will expect to earn millions from.  The latter option would necessarily reveal JD’s offer structure, terms and contract nuances to their principle competitor.  A clear violation.

Ashley knows this.  He is likely to hold out for the disclosure the contract requires.  It will be an added bonus to an already sweet deal.

The first call will be to JD Sports, who will be asked if they will tear up a contract worth millions, and agree that their commercial offer details can be shared with Sports Direct.  JD are a FTSE 250 company in their own right, and a subsidiary of Pentland Group, which also owns Speedo, Mitre, Red or Dead and Kickers.  I cannot even imagine who would have the authority to tear up such a deal without appropriate compensation.  But, there again, I cannot imagine the compensation figure Ashley would demand to tear up his contract.

Then there is the Hummel contract to consider.  Kit sponsorship deals depend on kit being sold.  Financial returns are performance dependent.  This is another can of worms.  The first summer of this deal will be over with the Danish manufacturer significantly down on projections.

The short history of Newco has seen a litany of horrendous commercial decisions but none more onerous than the deal signed with Sports Direct last year, or this year’s cataclysmic oversight not to honour that deal.

They bought 9% of their own shareholding for an inflated price of 27p, paid £3m in cash to curtail the existing agreement, will now have to make good to either JD or Sports Direct, and pay £500k legal costs.

The problem, as you and I know, is not Mike Ashley.  The world knows what kind of character Ashley is, there can be no surprises on that front when it comes to this.  The problem is Newco is a shambles of an operation.  Vain-glorious statements are the only environment they compete in, and in that competition, they are the real world champions!

Why the ‘Rangers’-sympathetic journalists have not chased him out of town is inexplicable.  He is doing damage in plain sight but being allowed a free ride.  We will miss him when he goes.

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396 Comments

  1. weebobbycollins on

    Timbhoy2…sitting at home going, “Yes! I got them up and hammering at their keyboards…this posting stuff is exciting….ah waaant anither sweetie (a blob of butter rolled gracefully in a bowl of Tate and Lyle refined sugar).

  2. mike in toronto on

    Davidop

     

     

    That is St. George Parker … the patron saint of lawyers…

     

     

    Seriously, if I was that shady …. do you not think I would be involved in Scottish football? maybe on our Board or the SPFL?

     

     

    On that note … I haven’t seen a response to my question about Celtic’s announcement last week about the Sevco game …. I noted that some objected to the 49 pounds… but I didn’t see anyone object (sorry, if I missed it) to Celtic now referring to Sevco as Rangers (not even The Rangers) in official Celtic releases ….

     

     

    it seems Celtic are now accepting the same club nonsense (no surprise … in 2012, DD said they were relegated and we needed them back …. )

     

     

    they have strung us along for seven years ….

     

     

    and yet we continue to laugh at the zombies’ willful blindness ….

  3. Davidopoulos on

    mike in toronto

     

     

    Didn’t see that reference, however I can well believe it. It’s only a matter of time before that media prostitute Gerry McCulloch is referring to the “Old Firm” on Celtic TV.

  4. At least I get a few responses,but I will stick to what I have said,some on here won’t say a bad word regarding the Board,but we will see what transpires at the end of the season,

  5. weebobbycollins on

    David 17…”Just seen a communication in work for road closures in Glasgow up to 2200…..”

     

     

    I saw the first line and thought, ‘oh no! no another 182 years of road closures.”

     

    Phew!…

  6. Excellent synopsis of the hun derangement.

     

    Even Jabba will be unable to spin this to the gullibillies.

     

    Timbhoy2 needs to stop forgetting his daily medications.

  7. TIMBHOY 2

     

     

    Ever thought of emigrating?Theres a lovely place you could go,and it nearly even rhymes withTIMBHOY 2.

     

     

     

     

     

     

    Have you guessed it yet?

  8. mike in toronto on

    Davido

     

     

    the first sentence from Celtic’s statement, as posted on July 27 on Celtic’s website …

     

     

    “CELTIC Football Club has confirmed that it will issue approximately 800 tickets to visiting supporters for the fixture against Rangers at Celtic Park on September 2. This mirrors the decision announced recently by Rangers.”

     

     

    “this mirrors the decision … by Rangers” Says it all, really .

  9. So the rainjoors seem to have embroiled themselves into something akin to bigamy….where one bride being jilted would also face the prospect of having the price of her now-redundant wedding dress shared with her bitter rival.

     

     

    Not even Freud could explain this deluge of Schadenfreude.

     

     

    It’s like commercial jelly and ice cream.

     

     

    Let mr king be designated president of deidco for life.

     

     

    HH. TenaTimsCSC

  10. TIMBHOY 2,

     

    “We will see what transpires at the end of the season”

     

     

    What,theseason where Brendan quits,The Huns win the league,and PL and the rest of the Board retire with millions.

     

     

    If I were you,I would not wait to see what transpires,I would be down to Ladbrokes putting the Mortgage on it.

  11. !!Bada Bing!! on

    Are the Gullabillies asking about The Lying King’s statement of triumph, getting rid of Ashley last year?

  12. Some poor wee deluded souls on that Hun Media.

     

     

    “How many strips would we have to sell to cover £ 3.5 million wasted”

     

     

    “Thats easy,just work it out that we recieve £ 50 quid a strip.Its not hard”.

     

     

     

    You will notice he does not work it out himself.

     

    That is some deal.Do you think Ashley knows about it.

  13. His favourite word ‘bullying’

     

     

    RANGERS chairman Dave King has hailed the club’s landmark merchandising deal with Sports Direct as testimony to the board’s refusal to back down in the face of the bullying tactics of the retailer’s controversial owner Mike Ashley.

     

     

    Supporters of the Ibrox side were given the green light to purchase strips again yesterday after an agreement between the two previously warring parties which King said called “by far the most significant event” at the club “since regime change”.

     

     

    21/06/2017

  14. BOBBY MURDOCH'S CURLED-UP WINKLEPICKERS on

    TIMBHOY2 on 31ST JULY 2018 12:51 PM

     

     

    All this talk on here about Sevco King, Ashley, Stripes,just takes away of what is really going on at Celtic Park,ie new players coming in or not, personally myself I don’t think there will be any new players coming, certainly not in this Transfer Window,and sadly it will be the end of Brendan Rodgers,at Celtic,Peter Lawell has chanced his hand to many times , regarding letting the purse strings go,it’s came back and bite him before,and if and it’s a big if ,the Huns win next season’s league,then it will spell the end for Lawell and Co, will it worry him not a chance,he will pick up a huge payoff Check,fans cash,who over the years have ploughed millions into the club,and for what,so as the lawells of this world have a good life.

     

    *

     

    Pretty much agree with that. Apart from the bit about the huns winning the league.

     

     

    That’s where PL projects his power. It’s all fine and dandy,we’re on the road,etc. Absolutely marvellous,a finer Chief Executive we could never wish to have now that we have no competition

     

     

    Cat’s got his tongue recently,mind. Barely a word.

     

     

    Probably busy tying up new deals before the transfer window closes

  15. Indeed you will, A.

     

    How long is Lewis Morgan out for?

     

    I would like to have seen him get a bit of game time if things are going well on Saturday. James Forrest should, IMO, be Handled with Extreme Care this season. If Edouard, Mcgregor ,N`tcham and and Forrest remain injury free, I believe we will be handsomely entertained at Celtic Park on many occasions this season.

     

    Cheerio for now,

     

     

    JJ

  16. Shock,Horror,Jings,Crivens,and Help Ma Boab,someone at Celtic Park mentioned the word R–g–s.Theres yer proof.A knew it,A knew it,thir awe in it the gither.It hid tae come oot.

     

    Empty the Park,the stands.Infamy,Infamy,

     

    you all know the end of that line.

  17. BMCUW,

     

     

    So you think Brendan will quit?

     

    Theres gonna be some queue at that Bookies.Get Timbhoy to bring a wee flask of Coffee for your wait.

  18. !!Bada Bing!! on

    Q- ‘whit channel’s the Rainjers gemme oan mate?….’

     

     

    A- The History Channel

  19. !!Bada Bing!! on

    WIGAN football chiefs have blamed CHELSEA fans after their “friendly” against Rangers sparked a violent street brawl in Glasgow.

     

    Footie yobs were caught on film lobbing bottles, tables and boards outside Glasgow Central Station after the Ibrox clash on Sunday.

     

     

    I joked about this the other night…

  20. Turkeybhoy,Wee Bobby Collins,etc,seems BMWP,agrees with me up to a point,I’ve seen Managers come and especially when they do well at Celtic,then when they put targets of players that could help Celtic ,for some reason the Biscuit Tin is opened up,this is what’s Happening with Brendan,and I will put my mortgage on that he will.be off next season,win lose or draw.so you 3 better be prepared for the Valium when the shit hits ,or a trip to the Pycharist Couch,????

  21. weebobbycollins on

    Since the very first day we appeared on this earth we have been cheated left, right and down the middle…born into a market-place where we are all potential customers, a source of dosh-cash-dinero…https://www.youtube.com/watch?v=t5KU34DrrPI…and that is what makes our wee world whirl wonderfully…the banks, the food companies, the oil companies, the pharmaceutical companies, the supermarkets, the media, the Government, the SFA, the Rangers…and of course our very own Celtic…they are all diddling us, it is the system…they want to sell us something, things we need and things we don’t need…and very often we are deceived into buying something that fails to do ‘what it says on the tin’…that is the way it is and always will be. Profit, profitability, profiteroles. That is my opinion! Look at Res 12, the work and effort that has gone into that. Battering heads off brick walls to achieve what? Something that should be ours by right, justice and fairness…waiting for the revolution are we? Could be a long wait…wouldn’t it be funny if two came along at the same time?

     

    KevJ in the multi-coloured coat…I hope you are well sir!

  22. Dallas Dallas where the heck is Dallas on

    Today woud have been Sean Fallon’s 96th birthday , or 91st going by his altered birth certificate when he signed for us.

     

     

    Sean was one of the greatest Celts in our club’s history. When I say that, as Sean often said not one our best ever players but as him being one of those who epitomsed the ethos of our club.

  23. The Celtic Football and Athletic Company Ltd. 1888 / 1994 on

    Brendan was brought here and paid £45 k a week, not just to skelp Scottish pub teams without an erse to their troosers, but more importantly, to present the soulless PLC board with a fudge / squirrel which would enable them to swerve the identifying of Sevco / Rangers as two different clubs. Thing is, not only did the PLC swerve this executive decision, they sneakily passed the buck onto the googly eyed supporters, knowing full well that, the very thing that the the PLC feared most, a fan rebellion with thousands of empty seats, was killed instantly as no rebellion was going to take place in the face of Brendan Rodgers, why should it, after all, what harm had Brendan done to the fans?

     

    Well, Brendan was innocently used as a fudge(was he innocent, or was he a player? Hmmmm) and the PLC put the price of the Sevco / Rangers tickets at £49, the fans bought the tickets, at the same time rubber stamping the same club fudge / squirrel / lie, the fans have moved on with the soulless PLC board, and most importantly, Sevco / Rangers have got away without a glove landing on them.

     

    So, these are the best days of our lives.

     

    HH

  24. BOBBY MURDOCH’S CURLED-UP WINKLEPICKERS on 31ST JULY 2018 2:23 PM

     

     

    Cat’s got his tongue recently,mind. Barely a word.

     

     

     

    No need really.

  25. Reading on here it does feel like a very long time since we won two trebles in a row

  26. Monaghan1900 on

    HRVATSKI JIM on 31ST JULY 2018 12:54 PM

     

    Is dedicating a podium that you don’t own the cyber equivalent of dealing in reset goods?

     

    ————

     

    You are unlikely to be prosecuted for reset, Jim. Don’t, however, rule out being pursued in the civil courts for spuilzie.