Rangers and JJB

[chilledbear 16]

RANGERS last night insisted they won't lose out even though JJB Sport has been hit with financial problems.

 

The Ibrox club signed a �£48million 10-year licensing agreement with the sportswear retailer three years ago.

 

Rangers received �£18m up front with �£3m in royalties guaranteed each year, but yesterday the sportswear retailer called in KPMG to its loss-making fashion chain, Qube and Original Shoe Company.

 

The appointment of KPMG emerged as JJB continues talks with bankers about securing a "standstill" on its debt.

 

But the company has until the end of this week to secure alternative finance under the two-month standstill agreement struck in December.

 

According to reports if JJB's banks are not satisfied by Saturday at the latest, the rest of the business will be forced to file for administration.

 

Rangers issued a statement saying: "We have been given assurances in recent weeks that satisfied Rangers FC in that the realignment of JJB's lifestyle division will not impact on the current trading arrangement with the club."

 

But while that doesn't address the possible consequences which could be caused by further financial strife for JJB it is understood that Rangers, who have already raked in �£27m from the deal, would take back outright ownership of the merchandising licence.

 

They would again be responsible for getting their strips and merchandise out to their public and although their own shops have gone they would find outlets pretty quickly.

 

Rangers believe they could very quickly make alternative arrangements to get their strips out to the fans.

 

A large number of supporters felt the club's right to market their brand shouldn't have been sold off in the first place.

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http://www.dailyrecord.co.uk/sport/2009/02/11/sponsor-jjb-s-financial-problems-won-t-affect-us-say-rangers-86908-21113998/