Rangers sued for £9.5MILLION by Hummel as judge orders club to disclose kit sale figures
RANGERS football club are being sued by a former kit supplier for more than £9.5million in lost sales.
The figure is detailed in paperwork lodged by briefs representing Elite Sports Ltd, the company behind Hummel sportswear.
Lawyers representing the Danish company started proceedings yesterday at the Court of Session in Edinburgh to have sales figures released to them.
It’s understood the loss is connected with sales at stores on Argyle Street in Glasgow, a store in Belfast and online.
The court was told how Rangers entered into the contract in September 2018 and a decision by a court in London just six weeks later resulted in the Glasgow club “not performing” in the agreement.
During the hearing, David Thomson KC, who was representing the sportswear firm, told Lord Braid that his client is still unaware of “exact sales figures” but the judge has now passed an order forcing the Ibrox side to disclose sales figures.
He said: “In September 2018 the parties entered into a contract for Elite Sports to supply Hummel kits and replica kits and had worldwide rights to distribute Rangers related products.
“The decision in London by Mr Justice Teare in October 2018 resulted in the business not performing its obligations as part of the contract.
“It is clear to me that Rangers entered into this contract and have failed to perform.
“We are seeking loss of profit suffered by the pursuer for season 2018/19, 20/21 and up to and including September 2023.
“At this stage the exact sales figures of shirts sold are still unknown and all we have is an estimate.”
In October 2018 it was ruled Rangers breached the terms of an agreement made with a company in the Sports Direct group.
In that judgment Mr Justice Teare concluded the Ibrox club made a new agreement with Elite Sports Ltd, believed to be worth £10million, without giving Sports Direct a chance to match that firm’s offer.
Despite this ruling the Gers started a new contract with their current kit supplier, Castore, in October 2020.
Court papers show Hummel is seeking £9,517,249 from the Glasgow club.
Gavin McColl KC who represented Rangers said: “The contract with Castore is different and they have a greater scope of rights than the pursuer in this case.
“There are fundamental differences between these companies.
“Firstly Castore is a sportswear manufacturer whereas the pursuer operates shops on behalf of companies so they are not comparable businesses.
“It would be like me starting an artisan Gin company and demanding to see the accounts of Gordon’s Gin.
“My submission is that this action should be refused.”
Judge Lord Braid said: “I accept Mr Thomson’s submission that it is relevant to look at what the market was and the sales figures for Castore.”
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