Former Newcastle owner Mike Ashley to sue club in £1.5million legal battle

Former Newcastle owner Mike Ashley will take the club to court for refusing to supply next season’s kits for sale at his Sports Direct chain.

A claim lodged at the Competition Appeal Tribunal has revealed that Ashley will sue his former side for ‘abusing its dominant position in the market’ by not supplying 50,900 units of Newcastle merchandise.

The order, made up mainly of shirts for the 2024/25 season, equates to £1.533million, but the complainant alleges Newcastle’s decision to instead sell the kit exclusively through JD Sports and their official stores is in breach of the Competitions Act.

Newcastle have until March 28 to reply to the claim, before a hearing on April 9. The claim also asks for damages to be paid.

The Magpies will change kit suppliers from Castore to Adidas next season and Sports Direct expected their current agreement to continue.

However, the claim alleges that under a new agreement, only Adidas, JD Sports and Newcastle themselves will be able to sell the 2024/25 strip.

The news continues Ashley’s tumultuous relationship with Newcaslte, the team he purchased in 2007 before selling it to Saudi Arabia’s Public Investment Fund in 2021.

Ashley was a hugely unpopular owner for the majority of his tenure, with fans protesting his reign, largely citing a lack of investment.

Yet despite relinquishing control of the club in October 2021 – to much celebration – Ashley’s relationship with the current regime remains tense.

They have previously clashed over a loan to facilitate the takeover, and also the removal of Sports Direct signage at St. James’ Park.

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