Bosses at Rangers Football Club are preparing for a pre-season High Court battle with Sports Direct and Newcastle United owner Mike Ashley over a merchandise deal.

The deal, which allows a company in the Sports Direct group to sell replica Rangers kit and other branded products, is expiring. Bosses at Rangers want to sign a new deal with a third party.

SDI Retail Services bosses object and say they should have a chance to match any new offer.

A judge on Wednesday said he would analyse evidence about the meaning of a contract clause at a High Court trial in London in late July.

Mr Justice Phillips said bosses at Rangers should not sign any new deal until he had ruled on the contract row.

The judge heard arguments about the dispute, from lawyers representing both sides, at a preliminary hearing in London on Tuesday.