BREAKING NEWS: Former Newcastle owner Mike Ashley sues club amid Sports Direct saga
Former owner of Newcastle United, Mike Ashley, has taken legal action against the club regarding the termination of a merchandise agreement with his company, Sports Direct. This move comes after Newcastle opted to partner with JD Sports instead of Ashley’s company, granting JD Sports the rights to sell replica shirts for the club starting from the next season, when Newcastle will switch from Castore to Adidas kits.
This dispute is not unexpected given the history of strained relations during Ashley’s 14-year tenure at Newcastle United, which ended in 2021 followed by the club’s acquisition by Saudi Arabia’s PIF.
Ashley’s legal claim, valued at over £1.5 million, alleges that Newcastle United’s decision to exclude Sports Direct from selling the new Adidas kit for the 2024-25 season constitutes an “abuse” of the club’s dominant market position.
Ashley, who has been notably supportive of Newcastle United even after selling the club, argues that this decision could disadvantage financially vulnerable fans by potentially increasing the price of shirts, something he claims he wouldn’t do.
Newcastle United has until March 28 to formally respond to the allegations, which they have not yet done as of the original report. After NUFC responds, Ashley’s Sports Direct will have the chance to reply before the matter possibly goes to a hearing.