Sports Direct’s £80m gain

MIKe Ashley’s retailer sports Direct is to rake in nearly £80m from a Us deal by its rival JD sports.

sports Direct has built up a stake of 8m shares or 19.3pc in American firm Finish Line, according to documents.

JD sports is buying the Us retail chain for £405.4m or 981p per share – meaning sports Direct is in line for up to £78.5m from its holding.

Ashley’s business has faced repeated criticism for buying stakes in its rivals, because City investors believe it creates a conflict of interest. The billionaire, who owns Newcastle United Football Club, was hit by a 2015 scandal over claims of ‘workhouse’ conditions at its factory in shirebrook, Derbyshire.

shares have since slumped more than 40pc and he has suffered massive investor revolts over sports Direct chairman Keith Hellawell, who is not seen as sufficiently independent and able to control Ashley.

The tycoon’s drinking habits are legendary in the City. Last year it was claimed in a courtroom battle that he holds meetings with management in the pub, and even vomited into a fireplace at one business gathering after drinking a dozen pints and vodka chasers.

The Finish Line deal is being used by JD to expand in the Us, where Finish Line has more than 550 stores.

JD sports chief executive Peter Cowgill called the deal transformative when it was unveiled last month.

shares in JD fell 0.4pc, or 1.5p, to 391p yesterday, while sports Direct was down 0.7pc, or 3p, to 402.8p, at the close.