Big-money deal lifts Ibrox blues
Rangers have received the ideal tonic to their Champions League exit by striking a deal with JJB Sports worth a minimum of £48m (€70m).
The 10-year licence agreement will net the club an initial payment of £18m (€26.2m) on June 7, the day they launch their new Umbro first-team kit for season 2006/2007, before earning them a minimum annual payment of £3m (€4.4m) for each year of the deal.
The licence will allow JJB to retail all Rangers-branded sports and leisurewear and ancillary branded products in their 439 stores in the UK.
On top of the guaranteed £3m (€4.4m) each year, Rangers can also expect additional payments when certain levels of product-related turnover are achieved by JJB.
Ibrox chairman David Murray had promised an announcement regarding significant financial investment when their Champions League campaign came to an end, after disgruntled fans protested at the lack of new players in the January transfer window.
Murray told the club’s official website, www.rangers.co.uk: “This innovative licence agreement will allow for the reduction of the club’s debt and enable further investment to be made in the team and the club’s facilities going forward.”
