Judge orders Ashley to pay £120,000 legal bill
Judge rules Sports Direct chief to foot bill after dropping legal fight
BILLIONAIRE businessman Mike Ashley faces having to pay about £120,000 in costs after a judge ordered him to foot the legal bills of Rangers chairman Dave King – and the governing body of Scottish football.
Lord Bannatyne made the ruling after the Sports Direct supremo dropped a challenge against the Scottish Football Association’s decision to class Mr King as a “fit and proper person” before he became chairman of the club. Mr Ashley’s lawyers were told their client will have to pay the costs of both the SFA and the Rangers chairman.
But Lord Bannatyne rejected a submission Mr Ashley was pursuing a vendetta against Mr King and held that the judicial review proceedings had not been brought for an improper purpose.
He also dismissed a claim by Mr King for an “additional fee” over the failed case.
It is understood the SFA is owed more than £100,000 in legal costs, while Rangers will be due about £20,000.
Mr Ashley, a Rangers shareholder, dropped the legal action on the first day of proceedings in April, shortly after receiving information about Mr King’s finances, which formed a major part of the SFA’s deliberations.
Mr Ashley’s legal team argued he should not have needed to pay the football governing body’s costs.
The usual legal convention is that the side which loses a civil case is liable for costs.
But Mr Ashley’s advocate, Craig Sandison QC, argued that an exception to the convention should be made, reasoning that if the Sports Direct founder had been given the information at an earlier stage, he would not have gone to the Court of Session.
But Lord Bannatyne said: “The argument put forward by Mr Sandison that the circumstances herein justified an exception to the normal rule was in my opinion misconceived.”
The latest decision comes just weeks after fellow Court of Session judge Lord Brodie ruled the SFA was correct to fine Mr Ashley for breaking ownership rules.
Mr Ashley, who owns an 8.92 per cent stake in Rangers, was fined £1,000 for his involvement with the newly promoted Scottish side and Newcastle United.
The judicial review against Mr King was brought by Mr Ashley’s Mash Holdings Limited. It argued the SFA should not have allowed Mr King to participate in the day-to-day running of Rangers because of his tax convictions in South Africa.
In 2013, Mr King agreed to pay £45 million after pleading guilty to breaching 41 criminal counts of South Africa’s Income Tax Act surrounding non-payment.
During the hearing last month, the SFA’s advocate, Roddy Dunlop, QC argued Mr Ashley’s alleged conduct and his decision to drop the proceedings should result in him paying all costs.
Mr Dunlop also urged Lord Bannatyne to consider the remarks made by Mr Justice Peter Smith in the High Court in London.
Then the High Court judge said Mr Ashley was abusing the legal system to “intimidate” Mr King and pursue a vendetta against his rival.
It surrounded Sports Direct claims that Rangers breached the terms of a confidentiality agreement between the retailer and the football club, which is also the subject of a court gagging order.