Hopes for a new era at Rangers after Sports Direct tycoon sells up

MARTIN WILLIAMS

Mr Ashley sold up just two days after Rangers chairman Dave King announced a truce with the billionaire over the sales of its merchandise in a move he described as “the single most important thing since regime change”.

Mr King who took control of the club three years ago, said a new one-year commercial deal with Sports Direct involves at least a share of net profits through their stores, megastore and webstore.

It came after a series of rows which ended in the courts over the amount Rangers were making from the sales of merchandise – said to be just 4p in the pound – that led to a fans boycott of kit sales. It was described by Mr King as a “toxic and acrimonious” relationship.

The agreement ripped up the old sevenyear deal with Sports Direct to be replaced by a new one which lasts till the end of next season, taking the club to the end of its fiveyear shirt deal with Puma.

It is estimated it could net Rangers an additional £5million a year via a huge increase in shirt sales.

Rangers had said it meant the end of the Mr Ashley-controlled merchandising arm Rangers Retail, with the club now dealing directly with the sports retailer and that “by far the largest benefit of [the new deal] is going back into the club and in particular to the football squad”.

After the truce was announced Rangers fans flocked back to Sports Direct shops and club stores in their droves to snap up replica shirts, which had been reduced in priced to around £20 before the agreement was announced.

Drew Roberton, the general secretary of the Rangers Supporters Association, said he would not object to further involvement by Mr Ashley if the next year proves profitable for the club and Sports Direct.

“We hope now everyone moves forward in a positive manner,” he said. “If we are sharing the profits now, it might not necessarily be the end of an association with Sports Direct. We have to see how it goes. Maybe if Rangers are successful, Mike Ashley will see just now just how much money can be generated by the club.”

He said it was “unfortunate” that the money from the share purchase by shareholder group Club 1872, would benefit Mr Ashley, rather than the club.

Some hardcore fans who took part in the Sports Direct boycott have vowed they will still not set foot in the stores despite the truce.

One said: “People have been saying that we cannot beat Mike Ashley. He is a billionaire. We just did. This is the way it was always going to end.”

With Ashley out the picture, the last remaining obstacle to a rights issue to raise money is also effectively gone, and Mr King has indicated his interest in this.

It is believed the board could call an EGM to push through plans to raise £16m to pay off loans from King and shareholders Douglas Park, George Letham and George Taylor.

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