Sports Direct owner Mike Ashley has been criticised by a judge for using the court system to attempt to "intimidate" Rangers chairman Dave King.

Mr Justice Peter Smith gave his written ruling on Friday in response to allegations that Mr King had committed contempt of court in an alleged breach of an injunction.

The South African-based businessman had already been cleared of the allegations in December after Mr Ashley failed in his bid to persuade the judge that Mr King should be jailed over the issue.

Mr Ashley and his sportswear company had claimed the Rangers chairman was is in contempt because he gave a media interview revealing the existence of a meeting and discussions related to contracts between Sports Direct and Rangers.

In court, Mr Justice Smith remarked that the "whole proceedings from first to last were designed to intimidate rather than to seek proper sanctions for an alleged breach."

He added: "These kind of muscular tactics of using a threat of committal is something which the courts should deplore."

In his written judgment, Mr Justice Smith stated costs for the parties totalled "over £300,000".

He concluded Sports Direct "regards the committal application as merely another method of enforcing bargains".

Mr Justice Smith said: "I refer in this context to Mr King’s very reasonable letter on August 4, 2015 seeking a way forward. Mr Blair’s letter was equally pacific.

"The response of [Sports Direct] was to issue the present application which had the flaws in it which I have identified above and appears to me to be utterly disproportionate compared with what benefits would ensue."

The London legal battles are the latest development in a conflict which started when Mr King took over running Rangers and centres on the commercial arrangements between the club and Sports Direct and its subsidiaries.

A trial on the validity of a confidentiality clause in the commercial contract between the two firms is due to call in London on February 8.

The judgment sets out the history of the commercial relationship between Sports Direct and Rangers, stating that "in or around 2012", Sports Direct "was approached by The Rangers Football Club Ltd (“the Club”) which is now a wholly owned subsidiary of Rangers to explore potential commercial opportunities."

It states that a number of written agreements were subsequently entered into. A joint venture firm, Rangers Retail Limited, was created on July 31, 2012. An Intellectual Property Licence Agreement was then agreed, allowing Rangers Retail Limited "certain rights to exploit the club's brand."

On October 31, 2012, a sponsorship agreement was created between Sports Direct and Rangers "relating to certain sponsorship and marketing rights for the Sports Direct brand at the Rangers Football Stadium".

In the autumn of 2014, talks were held between the two parties "concerning the potential extension of finance by the SDI Group and the renegotiation of its agreements with the club".

A marketing agreement was subsequently created, containing a clause which states the contract will continue "until terminated by either party given to the other party no less than seven years notice in writing". Justice Smith noted "that is a very long period of notice in a commercial agreement."

A finance agreement was then reached in January 2015 which saw Sports Direct agree to provide an interest-free loan of up to £10m to the club.

£5m of that facility was drawn down by Rangers, and was subsequently repaid on December 24, 2015.

The written judgment also gives a full insight into the extent of the confidentiality clause entered into between Sports Direct and Rangers. It is reproduced in full below.

"1. Confidentiality

"1.1) In connection with the commercial arrangements entered into between SDI and its subsidiary undertakings, on the one hand (together, the SD Group), and Rangers International Football Club plc (Rangers Plc) and its subsidiary undertakings, on the other hand (together, the Rangers Group), and in consideration of the SD Group and/or its representatives continuing discussions with the Rangers Group in connection with its existing and future commercial arrangements, Rangers Plc and Alexander Easdale (the Undertakers) shall treat as private and confidential, on the terms of this letter, (i) the existence of any discussions between the SD Group (and its representatives) and the Rangers Group (ii) the contents of any such discussions and/or any agreements entered into in relation to any such discussions and/or arrangements entered into, and (iii) any information provided by or on behalf of any member of the SD Group to Rangers Group and/or Alexander Easdale (save to the extent that such existing arrangements are covered by existing confidentiality provisions, which shall continue in full force and effect, notwithstanding this letter).

"1.2) For the avoidance of doubt, Rangers Plc shall be responsible for the compliance by its directors, officers, employees and consultants with this letter.

"1.3) The restrictions on the Undertakers in this letter shall not apply to any information which the Undertakers are required to disclose by law or the rules of any legal, regulatory or governmental authority to which the Undertakers are subject, but only to the extent required by, for the purpose of, and strictly in accordance with, the relevant law or rules and provided that to the extent it is legally permitted to do so and practicable within the time available, the Undertakers gives SDI notice of such disclosure, and takes into account the reasonable requests of SDI in relation to the content of the disclosure."

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