Explained: Why ex-Newcastle owner Mike Ashley is suing Magpies for £1.5m
WHAT HAPPENED?
It has been reported by talkSPORT that Ashley will officially take the club to court because of a claim lodged at the Competition Appeal Tribunal. The complaint has been made due to the club refusing to supply next season’s kits for sale at his Sports Direct chain. Ashley’s alleges that his former side has abused its ‘dominant position in the market’ by not supplying 50,900 units of Newcastle shirts, with the order equating up to £1.53 million ($1.93m).
THE EXPLANATION
The Magpies are set to change their kit suppliers from Castore to adidas next season, and Sports Direct expected their present relationship to continue. However, under the new agreement, only adidas, JD Sports, and Newcastle themselves would be able to sell the 2024/25 kit.
DID YOU KNOW?
Ashley’s relationship with Newcastle fans has always been tempestuous, with the SportsDirect CEO having purchased the Magpies in 2007 before selling it to Saudi Arabia’s Public Investment Fund in 2021. For the most part of his tenure at the club, most supporters despised him, primarily because of what they saw as a lack of commitment, especially financially.
WHAT NEXT FOR NEWCASTLE?
The Magpies have until March 28 to reply to the claim set forth by Ashley, before a hearing that is scheduled for April 9. The claim asks for the club to fulfil their prior agreement with Sports Direct and also asks for damages to be paid to the company.
