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Daily Record
Daily Record
Sport
Gavin Berry

Celtic title win avoided Rangers 'nuclear option' legal action as top flight clubs feared cinch contract tear up

Celtic’s Scottish Premiership title win avoided the prospect of cinch tearing up their SPFL sponsorship deal over their Rangers row in a move that could have seen top flight clubs take group legal action against the Ibrox club, according to a bombshell report.

The former champions have been at war with the league governing body over the contract, worth around £1.6 million a season split between the 42 SPFL clubs, which they claim is in breach of their existing deal with chairman Douglas Park’s rival car dealership.

Rangers have always maintained they expressed their concerns before the deal was signed and the matter has been taken to court.

However, according to a report in The Times there were real fears of the £8 million agreement being ripped up if the Light Blues had retained their title and refused to display branding, as they have done all season, during celebrations.

The fact the Hoops won the league eased those concerns with one unnamed club director saying talks between other clubs over ‘nuclear option class action’ were discussed if the deal was ripped up - with plans to sue Rangers for lost revenue.

But with a five-year deal in place then Celtic’s title win could only have delayed the prospect of issues arriving during the course of the contract.

(PA)

A Hampden source was quoted in the The Times saying: “I know there had been growing dissatisfaction from cinch about Rangers' lack of co-operation.

“Had they become champions again and continued to ignore the sponsors then that could have become a stress point.

"With Celtic clinching the title at Tannadice, though, cinch would have noticed the great publicity they received and they'll have benefited from at least as much publicity following the trophy presentation at Celtic Park on Saturday. That should show the sponsors the value there is to be had from the current contract."

And a top flight club director is quoted as saying: "It had reached the stage where, in the event of cinch tearing up the contract, some strong voices had discussed acting against Rangers.

”That was referred to as 'the nuclear option' — taking out a class action and effectively suing them for the money they would have received from the original deal, although it's unclear whether enough members would have the stomach for that.

"cinch have yet to make their second and third payments to the SPFL and the SPFL are due to pay us our round-up for the season in the next two or three weeks. If that cinch money isn't there it'll leave a major hole in their finances."

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