JJB Sports plc has signed a ten-year licensing agreement
with Rangers Football Club. Under the terms of the licence, JJB will design, develop, source and retail all Rangers merchandise throughout its substantial network of 439 stores within the UK. This will make JJB the official retail partner of Rangers Football Club. In addition, JJB will perform the maintenance and order fulfilment of the Rangers online retail facility where Rangers product will continue to be sold.
JJB is paying an initial consideration of £18m with a guaranteed minimum annual
royalty of £3m in each year of the licence. Additional payments may also be
payable to the Club if certain turnover thresholds are achieved. The initial
payment of £18 million will be made on 6 June, 2006, the day that Rangers
launches its new home kit for season 2006/2007. JJB has a separate agreement
which enables it to use the Umbro brand on Rangers official merchandise.
Tom Knight, JJB Sports CEO said, “As a result of this agreement, JJB becomes the official retail partner to one
of Europes most prominent football clubs. We have similar agreements in place
with Everton and Wigan Athletic and such agreements provide exciting
opportunities for us and underline our position as the UK's leading sports
retailer”
