Relief for King as new retail deal stops his reign taking Direct hits

This agreement is the most significant event since the regime change

SETTLEMENT with Mike Ashley comes as a huge personal relief to Rangers chairman Dave King.

Until agreement on a toxic situation was reached, Rangers could not move forward; King’s tenure was destined to be an unsatisfying business.

A new one-year deal could bring in a further £4-5million to the Ibrox coffers. After cross words, threats of jail and contempt-of-court stand-offs, jaw-jaw proved more beneficial than war-war.

There are further hurdles to come. A date in the Court of Session against the Takeover Panel. An anticipated rights issue. The task of staging a significant challenge to Celtic on the pitch.

But, for now, King is in no doubt. Settling the retail dispute is the most significant day for Rangers since the previous regime were ousted in March 2015. And for his tempestuous spell as chairman and largest shareholder.

‘This agreement is by far the most significant event since regime change from the club’s point of view going forward,’ said King.

‘I have seen comments, arguments put forward — even perhaps from within the club — that a deal should have been done with Sports Direct sooner. That it was a personality clash with Mike Ashley or whatever.

‘The truth, as (company secretary) James Blair will testify, is that a deal could have been done sooner. It could have been done two years ago on their terms.

‘It was only because we were pretty much non-negotiable, that we would not enter into any agreement, we would fight for five, six, seven years and continue to fight unless we got a deal that was right for the club. This deal is.’

Rangers were forced into a stand-off with Sports Direct by an onerous and hugely one-sided deal agreed by the previous board.

It brought just seven pence for every pound spent into the club, and Ashley had a clear self-interest in preserving it for as long as possible. When the situation became acrimonious, he had little reason to renegotiate.

A boycott of club products by Rangers fans made the difference in the end. So long as they refused to put money into the pocket of the retail giants, the deal served no real benefit for either side.

An earlier agreement would have allowed Rangers to launch a new kit and raise quick, easy money. As things stand, they have been forced to register last season’s kit for the Europa League qualifiers and will launch a new away kit likely to sell in huge numbers after agreement was reached yesterday.

‘For reasons that are not completely clear, the previous board alienated most of these retail rights in favour of Sports Direct without getting anything in return,’ added King.

‘So what we’ve now got is an agreement in place which should have happened three years ago.

‘What we have here is a good short-term arrangement until the end of next season. We will have to see where it goes and whether it continues beyond then. At least we are now in control of what happens thereafter.’

The saga has benefited no one. Rangers terminated the previous seven-year agreement, triggering a costly and lengthy court battle. Ashley even threatened to have King thrown in jail for contempt of court. Yet the Ibrox chairman says yesterday’s deal vindicates the decision to play hardball.

‘There was a bit of an impasse,’ said King. ‘Sports Direct asked themselves whether they felt Rangers were going to back down. The answer was “No”, so was it not better to seek some sort of negotiated outcome? It was a realisation from them that the initial strategy of trying to blow us away hadn’t worked.

‘I get Mike Ashley’s position. He is saying: “I came across a weak board in a weak position and I took advantage.” Let the buyer beware. That is right but, having said that, we are not going to allow it to continue. And there were various reasons we took for terminating the agreement because we couldn’t accept it.

‘We couldn’t accept the commercial terms of it, but the fact you don’t like the commercial terms of an agreement doesn’t give you a reason to go before a court.

‘We just felt there were sufficient other causes that we eventually terminated the agreement and then we were in a situation where we were at a stand-off, only to be resolved in the courts. And we knew that wasn’t good for us because we were giving Celtic that unnatural advantage because of the lack of our retail performance.

‘In my estimate, I’m not sure Mike Ashley and Sports Direct agree, it can’t have been good for them.

‘Because they believe that they are a smart retailer, which they are clearly. And other clubs should be using them. Rangers certainly wasn’t a good model for them to go to other clubs.’

King has spent much of his time recently shuttling back and forth between Johannesburg and London. His absence from Rangers games became a source of comment amongst fans and media, but he hopes that might change with yesterday’s agreement.

‘The resolution we have got has taken a huge amount of time,’ said King. ‘I would love to be in the position to go to games and get the enjoyable part of it. I have not been able to. I have been flying in to London for legal meetings. The time I have had to devote to this was significant.’

Pressure to get the deal done came from various quarters. Fans primarily, but also from his fellow shareholders, Douglas Park, George Letham and George Taylor. A situation where a small body of men loaned money to the club could not continue indefinitely.

The retail breakthrough, allied to Ashley’s decision to sell his shares, will allow key shareholders to convert their debt to equity — should they wish — through a rights issue.

For Rangers, a cloud has lifted. Already bolstered by the arrival of new players and a director of football in Mark Allen, the club can dare to plan again.

‘Relief is probably a good word,’ said King. ‘Even when I got on the plane last night I wasn’t sure about the deal.

‘We had come close a couple of times and then it drifted away again. I really was hoping we would get it across the line today.

‘This is incredibly important to the club going forward. Now we have our retail future in our own hands for the first time in years.’