Sports Direct to hold vote on £11m payout to Ashley’s brother

MIKE ASHLEY has called a meeting of Sports Direct’s shareholders so they can vote on a proposed £11m payout for his brother.

The retailer commissioned a review of its dealings with John Ashley, its former IT director, after shareholders voiced concerns about an arrangement it had with his delivery company. But the review by its legal advisers RPC and accountants Smith & Williamson, found had he been paid in line with other executives, he would have received an additional £11m.

Sports Direct says he was denied the cash “because of concerns at the time about public relations”.

Mike Ashley, who controls the majority of Sports Direct’s shares, said he would abstain on the vote, and “fully expects” independent shareholders to block the proposal “due to the passage of time involved”. He added: “It’s important for me to say that if John had owed one pound to Sports Direct, I would have ensured any sum was repaid in full.

“I hope shareholders will therefore be reassured that everything is in order and that any concerns are laid to rest.”

The review followed the revelation that Sports Direct had been paying John Ashley’s company, Barlin Delivery, a share of its overseas website sales.

The general meeting will be held on Dec 13.