Retail tycoon Mike Ashley has initiated legal proceedings against the football club he formerly owned, embroiled in a dispute with its current managerial hierarchy.
Ashley, who divested Newcastle United to a consortium led by Saudi Arabia for £305m in 2021, alleges that the club violated competition regulations by declining to furnish Sports Direct with merchandise, as reported by The Telegraph.
This course of action stems from a legal conflict between Ashley and Newcastle’s present manager, Amanda Staveley, who holds a 10% ownership stake in the club, alongside other stakeholders, including Saudi Arabia’s Public Investment Fund.
In a lawsuit filed recently, Sports Direct contends that Newcastle abused its market dominance by withholding the team’s 2024/25 kit from the retailer, instead opting to grant “exclusive rights” to competitor JD Sports.
This decision follows the club’s switch of kit suppliers from Castore to Adidas for the forthcoming season. As a consequence of this purported breach, Ashley is pursuing compensation from the club and an injunction to prevent Newcastle from excluding Sports Direct from the market.
Additionally, Ashley has instituted legal action against Staveley regarding a £10m loan he extended to her during the club’s acquisition process.
He alleges that Staveley defaulted on the loan agreement by publicly denigrating him subsequent to the sale, including expressing her eagerness to eradicate Sports Direct branding from Newcastle’s stadium.
Despite Staveley repaying the £10m loan along with £600,000 in interest in October, Ashley is pressing ahead with High Court proceedings against Newcastle United and its parent company.