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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. mike in toronto on

    Celtic40

     

     

    Not sure if you are serious or not … but, I have been on here, if not the longest, certainly near the top of the list … I started reading CQN about a month or so after P67 started. Took me a while to get the nerve to post (plus I am a computer numpty … still worry that this thing will steal my soul) …

  2. Oh my…is someone else is leaving CQN. How will I sleep tonight????

     

     

    I remember the days we used to post our team selections prior to the game. You know, like our Champions League qualifier tomorrow!!

     

     

    Anyway, for what it’s worth, here’s my team to get us through the tie.

     

     

    ……………………Gordon…………………………….Lustig….Hendry…Ajer….Tierney…..

     

    ………………Brown..Ntcham……………..

     

    ……Forrest……McGregor…Sinclair….

     

    …………………….Oduard……………………

     

     

    Basically, same line up and formation that tore them apart from 30 mins onwards, apart from starting (why change the formula that had them on the ropes?)

     

     

    HH

  3. weebobbycollins on

    AULDHEID on 31ST JULY 2018 10:30 PM

     

    -We had better not exit CL tomorrow night.

     

    CQN could self combust.-

     

    …………………………………………..

     

    CQN self-combust? Oooff! I remember the days when after a bad result you couldn’t log on because the system’s central imaginator had melted due to the level of foaming anger and frustration, fingers violently stabbing the F5 key, trying vainly to refresh the page…

     

    They don’t make fingers like that anymore…

  4. Gooooood Evening CQN – ???????

     

     

    Lively blog tonight?

     

     

    D17 fundamentally disagree – wee Paddy has a far better end product than any other wide player in our squad – would love to see him back on a perm deal, and yes would play him in team before James Forrest ( the player not blogger ?) take a look at Celtic by numbers stats.

     

    Now

     

    I believe my season ticket works out at around £31 per game, so potentially on average Celtic will make bout £20 extra on 7000 tickets for a certain game * 2, gives Celtic upto £300k extra for 2 games from thier own fans

     

    I disagree with this action by Celtic, but on a business / budget setting perspective, was the extra value if the 6 year old club fans visiting built into our 2018/19. Budget setting ??

     

    I would think Celtic will also save on some police costs for 2 games ??

     

     

    Bring back wee Paddy ??

  5. weebobbycollins on

    I think Paddy will definitely come back possibly…but then again maybe he will…

     

    There’s a place for him…

  6. Just caught Raman on the STV news quizzing Brendan on our

     

    transfer policy.

     

    If even a fraction of the same scrutiny was applied to King ,at

     

    the gowf on the same program , last week, then I could take

     

    them seriously.

     

     

    Meanwhile.

     

    Is one a happy clapper on CQN, if Celtic makes you happy ?

     

    Caveat, applies that I’ve got an inbuilt mistrust of the suits .

     

    I just happen to trust our manager.

     

    2-1 to the good guys in the hoops tomorrow. HH

  7. weebobbycollins on

    Rangers £49…sold out. Hmmmm…..Aberdeen £35?… Hibs £30?… St Mirren £26?… Hmmm!

  8. GUISEPPE67 on 31ST JULY 2018 10:48 PM

     

    ———————————————————-

     

    These are old posts from other blogs so might not be up to date. You could try calling the numbers and asking. Sorry I can’t be of more help.

     

     

    INVERNESS – CALEY CLUB 28 GREIG ST, IV3 5PX (Tel: 01463 2325330 (Highland Hoops CSC)

     

    INVERNESS – GLENALBYN BAR 2 YOUNG ST, IV3 5BL (Tel: 01463 231637) (Inverness Lions CSC)

  9. MIKE IN TORONTO on 31ST JULY 2018 11:05 PM

     

     

    I was being serious. I’ve been lurking and posting for a long time too and the blog has been a right old bear pit in the past. I’ve had disagreements with some hall of fame CQNers that could be politely be described as discourteous.

     

     

    CQN is a far tamer place now than at times in the past

  10. WEEBOBBYCOLLINS on 31ST JULY 2018 11:09 PM

     

     

    Very true, you could see the mushroom cloud from space

  11. mike in toronto on

    Celtic40

     

     

    I know there were always disagreements on CQN, but I have noticed a change …

     

     

    Over the years, a few events have not brought out the best in the blog

     

     

    One poster’s famous sign off seem to make it ok for discourtesy to be the currency on CQN

     

     

    The independence debate .. blog has never recovered

     

     

    The lack of any change in governance … will be the end of CQN (actually, I would say it already has been)

  12. ANGELGABRIEL on 31ST JULY 2018 11:19 PM

     

    Just caught Raman on the STV news quizzing Brendan on our

     

     

     

     

     

    Did Rumour Bagwash mention anything about a bid from rhe huns for Laffatme for £130k on a payment plan?

     

    transfer policy.

  13. What is the Stars on

    Bunch of pussies on here these days.

     

    There was a time when disagreements on here led to challenges to fist fights.

     

     

    Where have all the real cqn hard men gone?

     

    To Halifax Town Quick News…thats where

  14. auldheid@10:30

     

     

    thinking the same. mate said to m e in the club yesterday, no problem with rosenborg.

     

     

    hope it doesnt bite us in the archie, its not over till its over.

     

     

    tet

     

    some have short memories last year rosenborg could have left celtic park 2-0 up.

     

     

    felt the same as you but not brave enough to post because i knew they would be like a pit bull on a t bone and they were.

  15. I’ve been dipping in and out of CQN today, hoping to see some analysis and insights on tactic, personnel and hopes for tomorrow night. I’ve drawn a blank so far.

     

    Too much navel gazing.

     

    Celtic fans have always been moaning minnies. I remember the likes of McNeil, Johnston and Chalmers getting short shrift from an impatient crowd because we hadn’t scored after 30 minutes.

     

    Even his holiness, Bobby Murdoch, would be condemned for a misplaced pass or a poorly controlled ball on a pitch resembling a potato patch.

     

    Oliver Twist had nothing on the Celtic faithful. 6 goals up and the chant would rise, usually from Jungle patrons,

     

    “We want seven.”

     

    Two double trebles and the conspiracy theorists and hand wringers are declaring that Brendan’s tone suggests he is in dispute with the board over new signings. His body language is analysed for the deep meaning of a blinking eye or the sardonic smile as he puts an MSM agent is their place.

     

    I remember a Harold suggesting “You’ve never had it so good.”

     

    I remember hearing of another one who said “Is that a flock of birds or arrows?.

     

    And the point of the rant? If there is one

     

    Enjoy what we have for you never know when it could be taken away.

  16. From the Evening Times- Brendan, in hs own words, on the transfer policy and how he is supported. I feel everyone can make up their own mind as to whether these are the meaningless words of a bland diplomat, or whether thay have hidden meanings, or whether thay re indeed his own words reflecting his own views:-

     

     

     

     

    ” BRENDAN Rodgers last night dismissed suggestions he is at loggerheads with the Celtic board over their long-standing transfer policy despite admitting their squad was currently weaker than last season.

     

     

     

    Rodgers prompted speculation that he was unhappy with the lack of transfer activity at Parkhead last week following the first leg of the Champions League second qualifying round against Rosenborg.

     

     

    He stated that he was unaware about the pursuit of Australian winger Daniel Arzani the day after he admitted that he was unsure if he would be able to strengthen before the window closes next month.

     

     

    However, the Northern Irishman, who has brought in Odsonne Edouard from Paris Saint-Germain for a club record £9 million fee this summer, insisted he was comfortable with the Celtic business model as his side prepared for the second leg here.

     

     

    The double treble-winning manager stated he would not make signings simply to placate fans and the media and stressed he was excited with the personnel he currently has at his disposal.

     

     

    “We have lots of players that are working very well, that are developing, but what we need is quality and that is important,” he said. “I don’t really want to bring in players that are just going to come in and, you know, just stockpile a group. We’ve got a core that really connect to how we work, but we have to bring in quality.

     

     

    “Now that’s then what goes over to the club, and then the club will look to then do their best, which I believe they are, their very best, to get the level of quality that we need in and that’s going to help us improve because that’s what’s important.

     

     

    “I think there’s always going to be a limit and I am fully aware of that. No matter what my feeling is I have to respect where the club is at. The club isn’t a Premier League club down south. They’re always going to have to be mindful of the types of salaries that they can pay because it is a totally different market.

     

     

    “But it is the job of the manager, the coach, to try and push to get the possible players we can in and help keep the club moving forward.”

     

     

    Rodgers added: “I don’t run the club. The club have had a very clear structure of how they work. Of course, these last couple of years have been great years for us. I have got no reason not to ever believe that club don’t want that either.

     

     

    “They have supported me extremely well since I have been up here. All the changes I wanted to make, all the things I wanted to do, I have had great support in that. I just think it is one where there is not a huge reforming that needs doing.

     

     

    “I can easy bring in 10 players. It looks nice and it might flash up on the telly. I am looking at efficiency, I am looking at the quality of the players. So, like I say, the recruitment team are looking very hard at profiles, the targets, and, like I say, we hope we can get some of them in.”

     

     

    Asked if he would be happy to go into the new season with the squad he has got, Rodgers said: “I have no choice. I love working with the players that we have. Like I say continuity in football sometimes gets forgotten about because people just want to recycle players.

     

     

    “But when you get to a state like our club is in, which is very healthy, very strong, lots of great value within the squad, with lots of growth left in them, that’s great. That’s our job, to improve that.

     

     

    “But you also need to strengthen. As we sit here now, we aren’t as strong a squad as what we were last year. We have lost players. I think everyone can see that, but the club know that as well, we call know that, we all push to try and get in the best quality that we can to make us better. That is always the key.”

     

     

    Meanwhile, Rodgers said he was optimistic that Dedryck Boyata, who won’t play against Rosenborg tonight, and James Forrest would both sign extensions to their current contracts.

  17. Oh and I think I know why Paul doesn’t mention Halifax Town A.F.C.

     

    They are dead.

     

    They are no longer in the top tiers of English football.

     

    To their credit they didn’t have a sectarian signing policy.

     

    Im sure they even signed players from outside Yorkshire.

  18. Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    29% probability Rosenborg win tomorrow. Hope if it turns ou and odd goal AND CELTIC SCORE

     

     

    Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    Flouncers aint worth the paper they’re written on. Welcome back!

     

     

    Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    When I grow up Dad can I be a fully fledged bigot and go to mass on Sunday?

     

     

    Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    Daddy is it true that if we pay for an Old Firm we are funding the huns?

     

    Move along son. Nothing to see here.

     

    You’re only making it worse for yourself.

  19. Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    Dad! Dad! whits the chances of us getting by AEK Athens if all doesnt go tits up tomorrow?

     

     

    Have you thought about 10iar son?

  20. Halifax Town! Halifax Town!

     

    Read all about it!

     

    Hear yeez! Hear yeez! Hear yeez!

     

     

    Dad! dad!

     

    How many Celtic supporters does it take tae change a light bulb?

     

     

    Just the Wan son just the wan!

     

     

    Huh? how come dad?

     

     

    All he has to do is hold it in place while the world revolves around him.

  21. Bashi- Bazouks

     

     

    Bashi Bazouk is a term which comes from the Turkish word Basibozuk, which means literally “damaged head” but is usually translated as “without leader”. That word served to designate some irregular troops of the ancient Ottoman army.

     

     

    or

     

    https://www.miniaturemarket.com/cvb280484-0615.html

     

     

    $8.99 at Walmart

  22. Gene

     

     

    Thanks for the Premier Sports 2 confirmation on showing tomorrow night’s game.

     

     

    Celtarella

     

     

    Thanks for your info regarding the Bashi Bazouks. Hadn’t realised they were irregulars.

  23. TOSB heading for bed.

     

     

    Just a thought is it worse to have, say, 10 negative posts or 300 subsequent posts complaining about ‘negativity’ on the blog and reinforcing the point.

     

     

    zzzzzzz

     

     

    Hail! Hail! The Celts are here!

  24. SFTB

     

     

    Re latest from BR on recruitment policy here is an observation.

     

     

    About 10 days ago BR was interviewed by Chic Young and on Twitter Ewan Cameron tweeted BR didn’t look/sound happy.

     

     

    It’s like a weed sprouting and I suggested right away that anyone would sound unhappy being interviewed by Chic Young.

     

     

    Too late with the weedkiller. Like dandelion seeds Cameron’s thought (ie the meaning he gave to what he saw/heard) became a word then words and the words became flesh so to speak as others either came up with a similar meaning (like Chris Sutton) or read Cameron’s expressed thought and before long what was a thought or idea became real for a while.

     

     

    So real that BR has to say that something that was never real wasn’t er real.

     

     

    That thought has caused some strife on CQN and elsewhere on social media and my point is we need to be careful in what we think then say, for that is where we create a reality that we then have to live in.

  25. Well the good news is that it will be a comfortable 19 Cloudy degrees at kick off.

     

    Low chance of precipitation.

     

    High chance of progression.

     

    Athens will be a different bucket of suds.

  26. Mahe the Madman on

    Sftb,,, you provoked me with your “swagger” over his latest ;)

     

     

    “ Rodgers prompted speculation that he was unhappy “

     

    So dont blame me for reacting,,he prompted it himself. Thats was one of the big topics,,whether he did or not. Is the author wrong or a mineshafter? You claimed he didnt and we imagined it.

     

     

    “ for a club record £9 million fee “ I wish we would cut the crap,,no way did we lay out 9. With maximum addons maybe. I also thought the club as a rule didnt mention how much. Undisclosed fee is the norm usually.

     

     

    “ we have to bring in quality.”

     

    “ the club will look to then do their best “

     

    “They have supported me extremely well “

     

    “ the recruitment team are looking very hard at profiles, the targets, and, like I say, we hope we can get some of them in.”

     

    All of this is much much more preferable than Im not sure. Did he just slip up or was he miffed?

     

     

    “I don’t run the club. The club have had a very clear structure of how they work. “

     

    I wish we knew more . I know more about other clubs than my own.

     

     

    “ But you also need to strengthen . We have lost players. “

     

    Well there you have it. He needs players. Straight from the horses mouth.

     

     

    “ Asked if he would be happy to go into the new season with the squad he has got, Rodgers said: “I have no choice. “

     

    Could have said yes and been a happyclapper. Notice he chose not to.

     

     

    “ Meanwhile, Rodgers said he was optimistic that Dedryck Boyata “

     

    It is probably best to let him know hes wanted and theres a home for him right here so fair play for throwing that out instead of just leaving it alone. I have no problem at all with that.

     

     

    “Im not sure” spawned this and seems to have been a poor choice of phrase,,surely you can see that now. Even if there was no hidden meaning the fact that a lot seen one and there are subsequent clean up articles suggests the phrase was the wrong one to use. It wasn’t savvy.

     

     

    Hail Hail

  27. Mahe,

     

     

    An awful lot of supposition and interpretation in your post.

     

    “No way we lay out 9”

     

    “ I also thought”

     

    “It’s probably best”

     

    “Suggests the phrase was wrong”

     

     

    You may well be correct in your assumptions, however I am going to watch the double treble winning Celtic play in their 4th CL qualifying tie tonight having scored 3 in each of the previous 3 ties.

     

     

    Eurochamps67