Newcastle and Mike Ashley at war! Former Magpies owner ‘fails in bid to stop exclusive JD Sports deal’ surrounding next year’s shirts – but the Sports Direct boss ‘could yet take the club to court’
Former Newcastle owner Mike Ashley’s Sports Direct has failed to sell the club’s shirts in their stores next season, according to a report.
The Magpies have signed an exclusive deal with JD Sports, which will see their jerseys only sold in their stores and the club’s official store.
Ashley was in charge of Newcastle between 2007 and 2021 before selling it to the Saudi Arabian Public Investment Fund for £305m.
He has been widely criticized for his work as owner of the club, with the North East side now flourishing on the pitch and having qualified for the Champions League this season under new manager Eddie Howe.
Now according to Air sportsthe two sides are once again at war, with the Competition Appeals Tribunal unanimously rejecting Sports Direct’s request for an immediate injunction to halt the deal.
Mike Ashley’s Sports Direct have failed to sell Newcastle shirts in their stores next season
Sports Direct had claimed that an exclusive agreement between JD Sports and Newcastle would harm competition
Ashley owned Newcastle between 2007 and 2021 and was regularly criticized by fans
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Sports Direct had claimed that competition would be harmed by the deal, with lawyers previously arguing that the retailer, which calls itself the ‘home of football supplies’, should be able to sell cheaper shirts to avoid affecting fans.
The tribunal would have assessed the factor as ‘neutral’ when it came to their decision.
Ashely, who regularly wore a replica Newcastle shirt during his time as manager of the club, filed a claim for £1.533 million with the Competition Appeal Tribunal in March, although his claim has now been quickly dismissed.
The claim stated that the club ‘abused its dominant position in the market’ by refusing to supply the new Adidas kit for the 2024-2025 season to Sports Direct.
Details in the claim alleged that a decision to favor rival JD Sports and also sell exclusively through the manufacturers, club store and website is a breach of the Competition Act.
Sports Direct said their order, which is said to be based on a similar shipment from last year and not inflated, would have been for 50,900 units of Newcastle merchandise, most of which would have been the famous black and white striped shirts.
Ashley claimed the deal between Newcastle and rival store could hit Geordie fans in the pocket as shirt prices would be higher.
The tribunal said the retailer could take the club to court over the matter at a later date.
After being produced by Castore for several years, the club has ended their partnership for next season and signed a multi-year deal with Adidas.
Fans often protested against his ownership and celebrated when he sold the club after fourteen years
His company, which it called the ‘home of football equipment’, had filed a claim for £1.533 million at 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: ‘The suggestion that there was an obligation on Newcastle United FC and Adidas to ensure in their arrangements (i.e. between the club and Adidas) that the supply to Sports Direct in persists over time represents a significant barrier to competition, not improvement,
The judgment added: ‘We expect prompt (and ideally agreed) proposals from the parties, failing which the Tribunal will make its own proposals at short notice.’
The lawsuit represents the salvo in a series of clashes between Newcastle’s former and current owners.
Previous flare-ups centered on the details of a loan to facilitate the takeover, and the removal of the Sports Direct branding around the club’s St James’ Park ground.