Kieran Maguire issues Celtic claim as near-£10m Rangers legal action launched
Rangers being sued for £9.5million by Elite Sport should not come as a major surprise.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider as Elite Sport, the company behind Hummel, launch legal action against Rangers.
STV reported last week (23 November) that the company is seeking £9.5million from the Ibrox club as they allege a breach of contract.
It is claimed Rangers broke their agreement with Elite Sport and Hummel when they signed a £20million five-year kit deal with Castore in May 2020.
A judge has now granted Elite Sport access to the sales data for the Castore shirts so they can assess how much compensation they should receive.
“The £9.5million fee quoted in respect of Rangers and Elite Sport perhaps does seem high to some people,” Maguire told Football Insider correspondent Adam Williams.
“What has to be taken into account is that Rangers will be a jewel in the crown for many of the smaller kit manufacturers, given that they have such a large fan base both domestically and internationally.
“That fee is likely to consist of, effectively, an annual amount plus a commission.
“Merchandise is a significant earner and whilst Rangers account for merchandise in a different way to Celtic, Celtic have over £20million worth of merchandise sales per year and the margins are quite high.
“If the figure is covering a period of more than one year, which it may very well do so, then the £9.5million becomes a more realistic number.”
In other news, there has been a big update on Ryan Kent’s future amid a Rangers development on Monday (28 November).