The billionaire entrepreneur, who offloaded Newcastle United to a consortium led by Saudi Arabia for £305m in 2021, alleges that the club breached competition laws by declining to furnish Sports Direct with merchandise, as reported by The Telegraph.
This development arises amidst a legal clash between Mr. Ashley and the current Newcastle manager, Amanda Staveley, who holds a 10% stake in the club alongside other investors, including Saudi Arabia’s Public Investment Fund.
In a lawsuit initiated on Thursday, Sports Direct asserts that Newcastle has abused its dominant position by withholding the team’s 2024/25 kit from the retailer, instead opting to grant “exclusive rights” to competitor JD Sports.
This move comes subsequent to the club’s decision to switch its kit provider from Castore to Adidas for the upcoming season. Alleging this as a breach, Ashley is pursuing damages from the club and an injunction to prevent Newcastle from excluding Sports Direct from the market.
Separately, Ashley has filed a lawsuit against Staveley over a £10m loan he extended to her during the club’s takeover process.
He contends that Staveley defaulted on the loan agreement by making disparaging public remarks about him post-sale, including her anticipation of removing Sports Direct branding from Newcastle’s stadium.
Despite Staveley repaying the £10m loan plus £600,000 in interest in October, Mr. Ashley is pursuing High Court action against Newcastle United and its holding company.