Ashley suing over Newcastle ‘refusal’ to let him sell kit
Mike Ashley is suing Newcastle United over claims they are refusing to supply Sports Direct with their kit.
The retail billionaire, who sold the club to a Saudi Arabia-led consortium for £305million in 2021, has accused them of breaching competition law by cutting Sports Direct out of the market.
It comes amid a legal row between Ashley and Newcastle coowner Amanda Staveley, who owns a 10 per cent stake in the club alongside other investors, including Saudi Arabia’s Public Investment Fund.
In a claim issued yesterday, Sports Direct alleged Newcastle had “abused its dominant position” by “refusing to supply” the retailer with the team’s 2024-25 kit.
Instead, Newcastle have allegedly handed “exclusive rights” for kit distribution to Sports Direct’s rival JD Sports. It comes after the club recently changed their kit manufacturer from Castore to Adidas for next season.
As a result of the alleged breach, Ashley is seeking damages from the club and an injunction that will prevent Newcastle from “excluding” Sports Direct from the market.
A source close to Sports Direct said: “If this behaviour is allowed to go unchallenged then it is ordinary people who will suffer, i.e. football fans. If they want to exclude Sports Direct then they are doing so because they want to increase the price and improve margins, all at the expense of their own fan base.”
Ashley, the Frasers Group billionaire, who owned Newcastle for 14 years, has sued Staveley separately over a £10 million loan that he provided to her during the club’s takeover process.
Ashley first alleged that Staveley defaulted on the agreement when she made negative public statements about him following the sale.
She was quoted in reports as saying she was “looking forward” to Sports Direct branding being removed from St James’ Park.
“It’s a slight frustration when I go into the stand and I try and take a picture which doesn’t have Sports Direct,” Staveley reportedly said.
Ashley has also alleged that Staveley was the ultimate source of a press report that claimed Sports Direct had not paid for advertising at Newcastle for two years, that the club’s cash reserves were depleted when PIF took control, and that he had sought to remain a minority shareholder but had been refused.
The report angered Ashley, who alleged Staveley made them “with a view to putting misleading and admonishing information” about his tenure at Newcastle into the public domain.
He is pursuing High Court action despite Staveley having repaid the £10million loan plus £600,000 interest in October.
Meanwhile, his latest claim is filed specifically against Newcastle United and their holding company.
The hearing is expected to take place on April 9.
Newcastle were contacted for comment.