Rangers’ dispute with Sports Direct ends – with a new one-year deal

Dave King declared Rangers’ long-running dispute with Mike Ashley over after announcing he was going into business with the Sports Direct chief.

Rangers chairman King has signed a new 12-month retail agreement – which replaces the club’s controversial seven-year agreement with the retail giant – to bring to an end two years of acrimony.

And it will cheer boss Pedro Caixinha as he looks to close the gap on Brendan Rodgers’ rampant Celtic, after King said the new contract will provide a significant boost to the club’s coffers. It is understood Rangers could be around £5 million better off because of the new deal.

King found himself in conflict with billionaire sports retailer Ashley after he forced out the old board which was backed by the Englishman.

But he now believes the Light Blues can return to “normalised” commercial dealings after confirming he had signed off on a surprise new partnership with the Newcastle owner.

The pair’s legal teams have faced off across the courtroom on numerous occasions since King grabbed power at Ibrox back in March 2015.

Now, though, the pair are partners after King successfully persuaded Ashley to rip up their existing agreement and replace it with a fresh one-year pact.

That old deal – which sparked a kit sale boycott by fans – earned the club just 7p from every pound spent in club shops.

But King now hopes the Ibrox faithful will once again flock to buy shirts after insisting the new partnership will see “by far the largest part of the profits coming to the club, substantially so”.

It will also save Rangers hundreds of thousands of pounds in legal bills after both sides agreed to walk away from their costly court showdowns.

The nine-month negotiation process, led by club secretary James Blair, was finalised a little more than an hour before King called a press conference yesterday to announce the deal.

“It is the end of the dispute with Sports Direct,” King said. “It’s the single most important thing that has happened to the club since regime change.

“All litigation has been terminated with each party paying its own costs. So essentially we walk away with a complete new arrangement.

King confirmed Rangers will wear last season’s Puma home kit again, although there are hopes new change strips can be rushed out.

Rangers will also regain full ownership of the club’s logos and badges after they were controversially handed to Rangers Retail Ltd.

Dave King: signed a 12-month deal with Sports Direct.