Newcastle and Mike Ashley at war! Former Magpies owner ‘fails in bid to stop exclusive deal with JD Sports’ over next year’s jerseys – but Sports Direct boss ‘could still take club to court’
Former Newcastle owner Mike Ashley’s Sports Direct has failed to sell the club’s jerseys in its stores next season, according to a report.
The Magpies have entered into an exclusive deal with JD Sports whereby their jerseys will be sold only in their stores and the club’s official store.
Ashley managed Newcastle between 2007 and 2021 before selling it to the Saudi Public Investment Fund for £305 million.
He has received widespread criticism for his work as owner of the club, with the north-east side now thriving on the pitch after qualifying for the Champions League this season under new manager Eddie Howe.
Now, according to Sky Sports, the two sides are at war again, with the Competition Appeal Tribunal unanimously rejecting Sports Direct’s application for an immediate injunction to end the deal.
Mike Ashley’s Sports Direct has failed in its attempt to sell Newcastle jerseys in their stores next season
Sports Direct had claimed that an exclusive deal between JD Sports and Newcastle would harm competition
Ashley owned Newcastle between 2007 and 2021 and regularly received a lot of criticism from fans.
Sports Direct had claimed the deal would harm competition, with lawyers previously arguing the retailer, billing itself as the “home of football supplies”, should be able to sell cheaper jerseys to avoid supporters are not impacted.
The court would have deemed the factor “neutral” in its decision.
Ashely, who could regularly be seen donning a replica Newcastle jersey on match days during his time in charge of the club, has lodged a £1.533million claim with the Competition Appeal Tribunal in March, although his claim has now been quickly rejected.
The complaint said the club had “abused its dominant market position” by refusing to supply Sports Direct with the new Adidas kit for the 2024-25 season.
Details of the complaint allege that a decision to prefer rival JD Sports and also sell exclusively through manufacturers, the club shop and website constitutes a breach of competition law.
Sports Direct said their order, which would have been based on a similar shipment last year and would not have been inflated, would have been for 50,900 units of Newcastle products, most of which would have been the famous striped shirts black and white.
Ashley claimed Newcastle’s deal with the rival store could hit Geordie fans in the pocket as shirt prices would be higher.
The court said the retailer could take the club to court at a later date.
Produced by Castore for several years, the club ended its partnership before next season, signing a multi-year agreement with Adidas.
Fans often protested his ownership and celebrated the sale of the club after 14 years.
His company, the self-styled ‘home of football supplies’, had lodged a £1.533 million claim with the Competition Appeal Tribunal.
A consortium backed by Saudi Crown Prince Mohammed bin Salman now owns Newcastle
The three-person panel wrote of the judgment: “Suggesting that there was some obligation on Newcastle United FC and Adidas to ensure in their agreements (i.e. between the club and Adidas) that the “Sports Direct’s supply being maintained over time represents a significant hindrance.” on competition, and not on its strengthening,
The judgment adds: “We expect rapid (and, ideally, agreed) proposals from the parties, failing which the Court will, as soon as possible, make its own proposals. »
The trial represents the salvo in a series of collisions between the former and current owners of Newcastle.
The previous push concerned details of a loan to facilitate the takeover and removal of the Sports Direct branding around the club’s St James’ Park ground.
