Kieran Maguire: Rangers could be forced into 'sizable payout' amid £10m update - 'bad news'
Rangers could still be forced into a “sizable” payout by Elite Sports despite the fact that the company has gone into administration.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the likelihood of the Glasgow giants being taken to civil court by the sports merchandise company.
Elite Sports allege that Rangers broke the terms of a contract related to the sale of replica kits when the club was partnered with Hummel, the Danish firm who are themselves partnered with Elite Sports.
They are seeking £9.5million in lost sales but matters have been complicated by the fact they have recently gone into administration.
Ken Patullo, the managing director of insolvency practitioner Begbies Traynor told the Scottish Daily Express on Thursday (1 December) that Rangers could still be sued despite Elite Sports’ issues.
Maguire analysed the case and suggested that Rangers must now wait to see which way Elite Sports administration team’s thumb points.
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“A lot of research will be done from the insolvency perspective in terms of how they perceive the risk here,” he told Football Insider’s Adam Williams.
“It will cost a lot of money to put together a case against Rangers and it could take a long time. The administrators first of all have to secure funding for Elite Sports for the course of the administration. That will be their initial focus.
“If they feel there could be a sizable financial settlement and the legal advice is they have a significant chance of winning that, they have got three options.
“A) Proceed with the case B) say they aren’t prepared to take on the cost because they don’t have the cash flow and C) try and arrange a settlement with Rangers out of court.
“Two of these would be bad news for Rangers but we will have to wait and see because nobody knows the details.“