DAVE KING has revealed negotiations into a new kit supplier for Rangers will begin tomorrow.
Current suppliers Puma had until today to notify the club on whether or not they would like to continue their agreement beyond the end of this season, with King confirming there had been contact from the manufacturer.
Now, the club will have to decide if they wish to remain with Puma or go with another supplier, although that deal is unconnected with the club’s overall retail setup, with negotiations on that unable to proceed as yet.
King explained: “The arrangements we have with Sports Direct means we can’t go to the market yet and within a certain timeframe. What we are doing at the moment, is putting together the appropriate plans as to what the offering is we want to take to the market at that point in time.
“So just now it is pretty much preparation, whereas the situation with the kit is a little different. Puma are obliged to give us more information – today, in fact – as to whether they want to extend that, and they have already done that.
“So, from tomorrow, we will be actively entering negotiations on a kit provider whether that be Puma or someone else.”
King also expanded on other revenue streams open to the club, saying: “We haven’t taken full advantage as it hasn’t been open to us, and they are still not currently open. But if you look at going forward, the Sports Direct deal was so narrow and so restrictive, that the revenue streams were very restrictive.
“What we are doing now is looking at other areas, and there are commercial opportunities that we haven’t exploited which we are looking at just now, and we think can be very significant going forward. A lot of that is around social media and different products other than the replica kits.
“We are finding the trend globally, not just in football but in basketball, baseball etc. that there is a decline generally in the sale of replica kits, so it’s not a market we can continue to rely on for our growth.”
King also addressed the potential passing of Resolutions 10 and 11, saying: “Resolution 11 is not significant in terms of Resolution 10 still allows us to raise the money. The advantage of Resolution 11 is that clearly, we still have a lot of shareholders who are not supporting the club, and, in terms of new fundraising capability, I’d much rather we were financing with people who are supporting us as opposed to not supporting us.
“At least Resolution 11 allows us to target investors that we want and we believe will continue to support the running of losses for a couple of years. One of the things you have got, which makes the club difficult, are certain investors who want to make a profit.
“We are arguing that making a profit doesn’t make sense for the club – we have got to invest in the squad, and as I said earlier, just give us that two or three years to get back into Europe, and only then can we look at becoming more self-sufficient.”