Owe brother... another spat!
Sports Direct boss v shareholders again
BILLIONAIRE Mike Ashley has had another bust-up with Sports Direct shareholders – this time over £11million he says his brother is owed.
An internal probe found that John Ashley, who was the firm’s IT boss until 2015, was entitled to the money. It said he was denied the cash, including a £5m bonus dating back to 2007, because it would have looked bad at the time for “public relations” reasons.
The investigation by an outside law firm was prompted by investor concern about John Ashley’s ongoing dealings with Sports Direct through another company.
Sports Direct responded to the findings by recommending that John Ashley now gets the money. It is holding a special meeting on December 13 to seek shareholder approval. But Mike Ashley, who owns 60% of Sports Direct but won’t be voting, said: “I fully expect that independent shareholders will vote against this proposal due to the passage of time involved, although in my opinion, technically the money is owed and therefore should be paid.”
Ashley, who is in talks to sell Newcastle United, has had a fractious relationship with other investors and the City. Yesterday’s twist triggered a fresh backlash. Ashley Hamilton Claxton, from Royal London Asset Management, said: “The company has provided no evidence or detail explaining why the £11m is owed.
“Investors need to see a plausible reason as to why John Ashley is owed money, not how much he is owed.”