Interim injunction granted preventing football club from contracting with an alternative merchandise provider

Adam Ferris

In SDI Retail Services Ltd v King and others [2018], the applicant, a provider of replica football kit and other branded merchandise to Rangers football club, successfully applied for an interim injunction preventing Rangers from entering into another agreement with a third party provider.

On the applicant’s case, by entering such an agreement Rangers would have been in breach of a contractual provision obliging Rangers to give the applicant the opportunity to match some or all of the third party’s offer.

The court did not have much difficulty in finding that there was a serious issue to be tried in this case. In considering whether or not damages would be an adequate remedy, Bryan J held that in this case it was the value of the applicant’s potential profits going forwards that was of most relevance, whilst the profitability of the contract to date was of secondary importance. He concluded that there would be grave potential difficulties in quantifying the damages said to have been suffered by the applicant and accordingly, applying American Cyanamid principles, the interim injunction was granted.

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