Misplaced Pages

Latest revision as of 11:18, 21 December 2024

Mike Ashley
Ashley in 2023
Born	Michael James Wallace Ashley (1964-09-09) 9 September 1964 (age 60) Walsall, Staffordshire, England
Occupation	Businessman
Years active	1980–present
Title	CEO of Sports Direct (1982–2018) Newcastle United owner (2007–21) CEO of Frasers Group (2018–2022)
Spouse	Linda Jerlmyr ​ ​(m. 1988; div. 2003)​
Children	3

Michael James Wallace Ashley (born 9 September 1964) is a British retail entrepreneur who is the founder and former chief executive of Frasers Group plc (formerly Sports Direct International). He owned the Newcastle United football club between 2007 and 2021.

According to The Sunday Times Rich List in 2023, Ashley is the 49th richest person in the UK with an estimated net worth of £3.84 billion. In August 2021, Ashley announced that he intended to step down as CEO of Frasers Group plc in May 2022, but would remain a director of the main Board.

Early life

Ashley was born in Walsall in the West Midlands in 1964 and grew up in Burnham. His father was a manager at a food distribution depot. Ashley was educated at Burnham Grammar School in Burnham, Buckinghamshire and left school at 16 to become a county-level squash player. After an injury, he worked as a county-level squash coach.

Entrepreneurship

In 1982, at age 18, he opened his first sport and ski shop in Maidenhead with a £10,000 (equivalent to £44,576 in 2023) loan from his family. The chain quickly expanded in and around London and in the late 1990s, Ashley rebranded the chain as Sports Soccer. He was a sole trader and was not required to file accounts at Companies House; Sports Soccer became a limited liability company in 1999. Ashley hired Merrill Lynch for an initial public offering in November 2006 and the group was initially valued at up to £2.5bn ahead of the flotation on the London Stock Exchange.

The first brand Ashley added to his portfolio was Donnay Sports, followed by Dunlop Slazenger in February 2003, which he purchased for £40 million. He acquired Karrimor in March 2003 and later purchased Kangol for £10 million. Ashley took a £9 million stake and signed a long-term deal with Umbro. In mid-2006, he took a 25% stake in Matalan and installed mezzanine floors in larger Matalan stores for Sports World outlets. He also had a 29.4% stake in Blacks Leisure Group, owner of Millets and Mambo, and in 2005 purchased 9% stake in JJB Sports and 19% stake in JD Sports. In 2006, it overtook JJB Sports as the UK's largest sportswear retailer. He also owns Lonsdale. In 2019, there were more than 400 Sports Direct, Lillywhites, and USC stores in the United Kingdom and employed more than 20,000 people across the UK, Ireland, Belgium and Slovenia.

Sports Direct acquired a 38.5% stake in retailer Game Digital and, in June 2019, Ashley placed a £52 million bid to buy The Times. In February 2020, he bought a 12.5% stake in Mulberry and, in August, his Fraser Group purchased assets from DW Sports Fitness in a deal worth up to £44 million. The group initially bought 46 leisure clubs and 31 retail outlets from DW Sports Fitness for £37 million to merge with its own business. In February 2023, it was announced that he was in advanced negotiations to buy The Mall Luton and Overgate Centre for a combined total of £100m.

In 2000, Ashley gave the Office of Fair Trading evidence of business meetings held by sports retailers to fix the price of football shirts. At a meeting held at Allsports' chairman David Hughes' home in Cheshire, Dave Whelan reportedly told Ashley: "There's a club in the north, son, and you're not part of it." On 26 July 2017, Ashley won a legal dispute against investment banker Jeffrey Blue, who alleged that during a "night of heavy drinking" at the Horse and Groom pub in London, Ashley agreed to pay Blue £15 million if Sport Direct's shares doubled to £8. The High Court ruled (in Blue v Ashley) that no-one would have thought that what Ashley said was serious. In March 2020, Ashley and Sports Direct were criticised after an announcement that they would stay open despite increased government restrictions associated with the COVID-19 pandemic. A few days later, they announced that they would be closing until given the green light to reopen by the government.

On 31 January 2010, an episode of BBC North East and Cumbria's Inside Out, titled "Mike Ashley Uncovered," journalist and host Chris Jackson travelled to Thailand to visit Lonsdale's factories. His experiences purchasing Newcastle United without knowing how much debt the club was in was also detailed. Neither Ashley nor his representatives showed interest in taking part in the film, declaring that the film was producing a majority of inaccuracies. They did, however, state that they would be reviewing the film closely. No further comments were made. In 2016, he was ordered by the Department for Business, Innovation and Skills to investigate working conditions at a Sports Direct warehouse in Shirebrook following allegations of misconduct. During the hearing, MPs compared Sports Direct to a "Victorian workhouse." In 2020, The Guardian reported that an undercover investigation revealed that working conditions had improved only incrementally.

On 20 December 2024, Mike Ashley faced rejection from Boohoo shareholders in his bid for a board seat, with 64% voting against his appointment during a meeting in Manchester. Despite Frasers Group holding a 27% stake as Boohoo's largest shareholder, the online retailer cited "irreconcilable conflicts of interest" in opposing the appointments.

Football

Newcastle United

On 23 May 2007, Ashley bought Sir John Hall's 41.6% stake in Newcastle United at one pound per share, for a total cost of £55,342,223 via his company St James Holdings Ltd. Under the terms of UK takeover law, purchases of more than 30% of a company require the buyer to offer to buy remaining shares at the same or greater price. On 31 May, it was reported that the Newcastle board were considering Ashley's offer and, on 7 June, chairman Freddy Shepherd agreed to sell his 28% share to Ashley. By 15 June 2007, Ashley owned a 77.06% stake in Newcastle United, on course to withdraw the club from the stock exchange, having surpassed the 75% threshold required. The following month, Ashley paid around £134 million to acquire the remaining 22.94%, making him sole owner of the club. He paid off large sums of debt inherited from the previous owner but was criticised for not doing due diligence when buying the club, as he subsequently revealed he had been unaware of issues such as the upfront payment of club finances, including the Northern Rock sponsorship and the presence of outstanding liabilities for long-past player transfers.

Ashley installed Chris Mort as chairman and gave him the responsibility to run the club. Meanwhile, Ashley watched games from the stands among other fans. Sunderland publicly refused to give Ashley permission to wear his team shirt in the Stadium of Light corporate box for the Tyne–Wear derby on 10 November. Instead of dressing up for the game, as is customary, Ashley watched the game from the stands with other Newcastle fans as usual. Ashley's popularity increased further with the return of Kevin Keegan as manager on 16 January 2008 to replace the unpopular Sam Allardyce. On 30 August 2008, Ashley was shown on live television drinking beer while with fans in the away stand during Newcastle's game against Arsenal in London, contravening Premier League licensing rules stating that alcohol may not be consumed in sight of the pitch. Ashley subsequently "received words of advice" from the police during the game. A Newcastle United statement said Ashley had been given the beer and told that it was non-alcoholic, despite the fact that Emirates Stadium does not sell non-alcoholic beer.

On 2 September 2008, Ashley learned that Keegan was allegedly sacked by managing director Derek Llambias after expressing disdain with Director of Football Dennis Wise's interference in team matters. Keegan's official resignation on 4 September led to prolonged protests from fans, who dubbed Ashley and Wise the "Cockney Mafia." The League Managers Association advised the club to develop a structure to satisfy Keegan's replacement and to avoid damage to the club's image. Ashley put the club up for sale on 14 September, one day after the first home game since Keegan's resignation, which Ashley did not attend. He acknowledged the fans' anger and stated that he had the utmost respect for Keegan, and no longer wanted to subsidise the club, as he believed it would no longer be safe for him or his family to attend matches. He appointed Joe Kinnear as temporary Director of Football, replacing Wise, as he began his search. After a trip to the Middle East, reportedly to solicit potential buyers, Ashley handed responsibility of the club's sale to a London law firm. The Newcastle United Supporters Club, an organisation meant to "properly" represent fans' views to future Board members, was established at this time, and there was an increase in interest of whether it was feasible to have a fan buyout of the club. On 28 December, Ashley announced that the club was no longer up for sale after no acceptable buyer was identified.

In January 2009, interim manager Joe Kinnear was offered a full-time position at the club, but suffered heart trouble in February and took leave from the club. On 1 April, Ashley appointed Alan Shearer to assume Kinnear's duties; Shearer, however, was unable to achieve more than five points from the eight games played under his charge. On 24 May, Newcastle United was relegated to the Championship; the following day, Ashley apologised to fans for mistakes made throughout the season and praised the staff, including Shearer and Kinnear, for their efforts. Ashley began searching for a buyer again in August and September 2009. Local businessman Barry Moat reportedly opened negotiations with the club but these fell through. On 2 October, a Premier League arbitration panel found the club guilty of "constructive dismissal" and Ashley was made to pay Keegan £2,000,000 compensation plus interest for his mistreatment during the time at the club. The club was off the market again by 27 October and Ashley put an additional £20m into the club. This move was criticised by fans, as he had stated the week prior that he regretted the purchase of the club and felt he never had the required stance and knowledge to own a football club. In this statement, the club also announced they would be attempting to sell the club's naming rights to the stadium in an effort to pay off debts. This move outraged fans, who argued that the club would lose heritage if the name was changed. A few days later, on 4 November, it was announced that Ashley's Sports Direct would sponsor the stadium, rebranding it the "sportsdirect.com @ St James' Park Stadium" until the end of the season.

Criticism from fans mounted on 6 November 2010, when manager Chris Hughton was sacked and subsequently replaced with Alan Pardew. Ashley assumed the role of managing director following the June 2013 resignation of Llambias; Lee Charnley was hired as his permanent replacement in 2014. On the final day of the 2014–15 season, Ashley gave his first televised interview to Sky Sports, eight years after buying the club. He stated that he would sell up, but only when the club had won a trophy, quickly reiterating that qualifying for the Champions League would also count. With Steve McClaren's appointment as head coach, Ashley stepped down from the Newcastle United board of directors. Within ten months, McClaren left and was replaced by Rafael Benítez, and Ashley gave another interview, where he reiterated his regret about buying the team but admitted that he was "wedded" to the club. He also felt that Benítez was the right man to keep the club in the Premier League. The club was relegated for a second time under Ashley's ownership at the end of the following season after local rivals Sunderland beat Everton 3–0.

During the final stages of buying the club for £300m from Ashley in April 2020, a consortium consisting of PCP Capital Partners, Reuben Brothers, and the Public Investment Fund of Saudi Arabia received notification from the Premier League that they were required to undertake the Owners' and Directors' Test to prevent corruption. The document detailed PCP's long-running legal case against Barclays in particular. Two months later, the consortium pulled out of the buying process, citing the prolonged delay from the Premier League to communicate a decision as the catalyst. Ashley was then engaged in various legal battles with the Premier League, after Newcastle United released a statement saying that "the club and its owners do not accept that Premier League chief executive Richard Masters and the Premier League have acted appropriately" in relation to their conducting of the Owners' and Directors' Test. On 7 October 2021, the consortium finalised the £300 million purchase of the club.

Other clubs

Ashley acquired a 8.92% stake in the Rangers International Football Club, the parent company of Scottish football club Rangers, in October 2014. The Scottish Football Association rejected Ashley's request to raise his shareholding to 29.9% due to the fact he already owned a large amount of Newcastle United shares, which was seen as a conflict of interest. In January 2015, Rangers fans protested against Mike Ashley's plans to secure a £10 million loan using the club's stadium as security, expressing major concern and distrust about his nature and the purpose of his intentions. On 23 June 2017, Ashley sold his entire Rangers shareholding to Club 1872 and Julian Wolhardt.

On 17 November 2022, Ashley bought the CBS arena, Coventry City's stadium. On 13 December 2022, it was reported that Ashley had issued an eviction notice to the club, which caused backlash from both the club and fans, as Coventry had previously signed a contract letting them stay in the stadium for an additional 10 years in 2021. As of 28 March 2023, negotiations were still in progress, though the club had signed a short-term contract in the meantime.

Personal life

Ashley is very private about his personal life. In 1988, he married Linda Jerlmyr, a Swedish-born economics graduate, and the couple have three children. Their son Ollie is a DJ and former owner of Radar Radio prior to its closure in 2018; their eldest daughter Anna is married to Michael Murray, who stepped in as CEO of Frasers following Ashley's resignation; and their younger daughter Matilda is owner of the Double Take cosmetics company, which she founded in 2015. Ashley and Jerlmyr divorced in 2003, culminating in one of the biggest settlements in British legal history, with Ashley reportedly handing over the family home, multiple properties, and assets with a total worth of £50m.

References

1. "Company Overview of SportsDirect.com Retail Ltd: People". Bloomberg. Retrieved 29 May 2019.
2. "Mike Ashley: Who is the founder of Sports Direct?". BBC News. 3 May 2016. Retrieved 29 January 2018.
3. Pierce, Andrew (11 January 2008). "Newcastle's unlikely lad Mike Ashley calls shots". Retrieved 29 January 2018.
4. Vandevelde, Mark (25 March 2016). "Mike Ashley, a shy and retiring retail insurgent". Financial Times. Retrieved 29 January 2018.
5. Goodley, Simon (17 January 2014). "Sports Direct's Mike Ashley: nasty or nice?". The Guardian. Retrieved 3 April 2023.
6. "Rich List 2019: profiles 53-100, featuring Mike Ashley and Bernie Ecclestone". The Times. 12 May 2019. ISSN 0140-0460. Retrieved 12 September 2019.
7. "Mike Ashley to step down as chief of Sports Direct owner Frasers Group". The Guardian. 5 August 2021. Retrieved 5 August 2021.
8. Blackledge, Richard; Saker-Clark, Henry (5 August 2021). "How Mike Ashley built Sports Direct empire in Maidenhead - plus his net worth, family, houses and controversies". Berkshire Live. Retrieved 3 April 2023.
9. ^ "Mike Ashley, The Elusive Billionaire". The Herald. Glasgow. 13 December 2014. Retrieved 7 September 2016.
10. Dunn, Will (15 August 2018). "How Mike Ashley became the new emperor of the high street". The New Statesman. Retrieved 29 August 2019.
11. ^ Maidment, Neil. "Mike Ashley, the maverick who changed face of UK sports retail". Reuters UK. Archived from the original on 18 January 2016. Retrieved 5 January 2016.
12. "Inflation Calculator". Bank of England. Archived from the original on 6 October 2014. Retrieved 5 January 2016.
13. Fletcher, Richard (9 April 2006). "Revealed: UK's first sports kit billionaire". The Times. Archived from the original on 10 March 2007.
14. "Retail round up - The Sunday papers". Imagine Recruitment. 4 December 2006. Archived from the original on 8 December 2006.
15. ^ Hall, James; Power, Helen (11 December 2006). "Sports tycoon eyes £2.5bn IPO". The Daily Telegraph. Archived from the original on 12 November 2007.
16. "Mike Ashley". The Times. 2003. Archived from the original on 10 March 2007.
17. ^ "MPDClick: Kangol sold to sports empire (UK)". MPDClick. Archived from the original on 27 December 2006.
18. Kollewe, Julia (8 August 2005). "Sports World tycoon mulls bid for Umbro". The Independent. Archived from the original on 11 January 2008.
19. "'Pimpernel' takes a £9m stake in Umbro". The Times. 17 July 2005. Archived from the original on 10 March 2007.
20. Fletcher, Richard (21 May 2006). "Billionaire sports tycoon plots move into Matalan". The Times. Archived from the original on 10 March 2007.
21. ^ Davey, Jenny (10 December 2006). "Ashley empire may be worth 25bn". The Times.
22. Foley, Stephen (20 October 2005). "Market Report: Sports World owner grabs stake in John David". The Independent. Archived from the original on 16 March 2007.
23. Seawright, Stephen (6 April 2006). "Sports World International sales climb 45pc and knock JJB off top spot". The Daily Telegraph. Archived from the original on 12 November 2007.
24. ^ Burden, Elizabeth (6 June 2019). "Mike Ashley bounces back with £52m bid for Game Digital". The Times. Retrieved 6 June 2019.
25. Jones, Callum (4 February 2020). "Mike Ashley bags another prize asset in Mulberry". The Times. Retrieved 3 April 2023.
26. Sweney, Mark (24 August 2020). "Mike Ashley's Frasers Group buys fitness chain DW Sports". The Guardian. Retrieved 25 August 2020.
27. "Mike Ashley buys long-time rival's sports business". BBC News. 24 August 2020. Retrieved 25 August 2020.
28. Chambers, Sam (4 February 2023). "Mike Ashley swoops for shopping centres". The Times. Retrieved 3 April 2023.
29. Shepherd, Damian (5 February 2023). "Billionaire Mike Ashley Eyes £100 Million Bet on UK Malls: Times". Bloomberg. Retrieved 3 April 2023.
30. Wood, Zoe (7 July 2009). "Tables turned as Mike Ashley bankrolls JJB chairman". The Guardian. Retrieved 3 April 2023.
31. Goodleyand, Simon (26 July 2017). "Mike Ashley wins high court battle over '£15m pub deal'". The Guardian. Retrieved 26 July 2017.
32. "Sports Direct U-turns on opening after backlash". BBC News. 24 March 2020. Retrieved 26 March 2020.
33. "Mike Ashley Uncovered: An Inside Out Special". BBC.
34. Ford, Coreena (31 January 2010). "Mike Ashley's sporting empire probed". Chronicle Live. Retrieved 3 April 2023.
35. "Mike Ashley answers questions on Sports Direct working conditions". UK Parliament. 3 June 2016. Retrieved 3 April 2023.
36. Rodionova, Zlata (22 July 2016). "The 7 most shocking testimonies from workers at Sports Direct". The Independent. Retrieved 3 April 2023.
37. Goodley, Simon (23 July 2020). "Have working conditions improved at the Sports Direct warehouse?". The Guardian. Retrieved 3 April 2023.
38. Taaffe-Maguire, Sarah (20 December 2024). "Billionaire Mike Ashley denied Boohoo board seat after boardroom battle". Sky News. Retrieved 21 December 2024.
39. "Billionaire Ashley launches Newcastle takeover". ESPN. 23 May 2007. Archived from the original on 25 May 2011. Retrieved 23 May 2007.
40. "Newcastle consider Ashley offer". BBC Sport. 31 May 2007. Retrieved 31 May 2007.
41. "Ashley to take over Newcastle Utd". BBC News. 7 June 2007. Retrieved 7 June 2007.
42. "Ashley boosts stake in Newcastle". BBC News. 15 June 2007. Retrieved 15 June 2007.
43. "Toon Were on the Brink – Mort". 26 September 2007.
44. "Keegan returns as Newcastle boss". BBC Sport. 16 January 2008. Retrieved 4 May 2010.
45. Doyle, Paul (16 January 2008). "Premier League side Newcastle re-appoint Kevin Keegan as their new manager". The Guardian. Retrieved 22 August 2019.
46. "Police warn Toon owner over beer". BBC News. 1 September 2008.
47. "Chief speaks out over Keegan row". Newcastle United Football Club.
48. "Keegan resigns as Newcastle boss". BBC News. 4 September 2008.
49. "Premier League – Magpies warned after Keegan exit". Yahoo! Eurosport UK. 5 September 2016. Archived from the original on 7 September 2008. Retrieved 26 March 2009.
50. "Ashley puts Newcastle up for sale". BBC Sport. 14 September 2008.
51. "Magpies name Kinnear interim boss". BBC Sport.
52. "Ashley calls off Newcastle sale". BBC Sport. 28 December 2008.
53. Dall, James (26 May 2009). "Ashley 'sorry for mistakes'". Sky Sports.
54. Stewart, Rob (2 October 2009). "Newcastle United ordered to pay Kevin Keegan £2 million in damages". The Daily Telegraph. Archived from the original on 5 October 2009.
55. "Ashley takes Newcastle off market". BBC Sport. 27 October 2009.
56. "Ashley reduces asking price". Sky Sports. 19 October 2009.
57. Williams, Ollie (28 October 2009). "Fans' fury at Newcastle chief". BBC Sport.
58. "Newcastle reveal new stadium name". BBC Sport. 4 November 2009.
59. "Boss Chris Hughton sacked by Newcastle United". BBC Sport. 6 December 2010. Retrieved 6 December 2010.
60. McNulty, Phil (6 December 2010). "Hughton sacking shames Newcastle". BBC Sport. Retrieved 6 December 2010.
61. "Chris Hughton not treated 'decently' by Mike Ashley – Lord Alan Sugar". BBC Sport. 7 December 2010. Retrieved 7 December 2010.
62. Taylor, Louise (19 June 2013). "Derek Llambias resigns as managing director of Newcastle United". The Guardian.
63. "Lee Charnley Appointed Managing Director". Newcastle United F.C. 5 March 2014.
64. Warburton, Dan (5 March 2014). "Who is Lee Charnley?: 'Shy and quiet' company stalwart who rose through the ranks". The Chronicle Live.
65. "Mike Ashley says he will not sell Newcastle United until he has won trophy". Sky Sports. 25 May 2015.
66. "Club Statement: New Board Of Directors". Newcastle United F.C. 10 June 2015.
67. Taylor, Louise (21 March 2016). "Mike Ashley 'regrets' buying Newcastle but remains 'wedded' to club". The Guardian. Retrieved 4 May 2016.
68. Taylor, Daniel (11 May 2016). "Sunderland safe after Lamine Koné double sinks crumbling Everton". The Guardian.
69. Magowan, Alistair; Roan, Dan; Scott, Laura (14 April 2020). "Newcastle United takeover deal worth £300m close". BBC Sport. Retrieved 14 August 2020.
70. "Newcastle takeover: Full statement from PIF, Amanda Staveley and Reuben Brothers as proposed bid fails". The Independent. 31 July 2020. Archived from the original on 4 October 2020. Retrieved 14 August 2020.
71. "Newcastle hire lawyers in dispute with Premier League over failed Saudi-led takeover". Sky Sports. 14 September 2020. Retrieved 21 September 2020.
72. "Newcastle take Premier League to competition tribunal over takeover collapse". BT Sport. 6 May 2021. Retrieved 8 August 2021.
73. "Club statement". Newcastle United. 9 September 2020. Retrieved 9 September 2020.
74. "Premier League statement". Premier League. 7 October 2021. Retrieved 7 October 2021.
75. Wilson, Richard (2 October 2014). "Newcastle owner Mike Ashley takes Rangers stake to almost 9%". BBC Sport.
76. Wilson, Richard (24 December 2014). "SFA rejects Mike Ashley's Rangers stake increase request". BBC Sport.
77. "Rangers: Fans protest against board at Ibrox Stadium". BBC Sport. 16 January 2015.
78. McLaughlin, Chris; Wilson, Richard (15 January 2015). "Rangers: Mike Ashley seeks security over Ibrox for £10m loan". BBC Sport.
79. Thomas, Lyall (23 June 2017). "Newcastle owner Mike Ashley sells entire Rangers shareholding". Sky Sports.
80. "Retail tycoon Mike Ashley buys CBS Arena for £17m". Coventry Live. 17 November 2022. Retrieved 3 April 2023.
81. Hewitt, Matty (13 December 2022). "Former Newcastle United owner Mike Ashley makes Coventry City stadium U-turn". Chronicle Live. Retrieved 3 April 2023.
82. Turner, Andy (28 March 2023). "Update on Coventry City talks over CBS Arena deal with Mike Ashley's Frasers Group". Coventry Live. Retrieved 3 April 2023.
83. ^ Finch, Julia; Cobain, Ian (4 November 2006). "'Britain's answer to Howard Hughes' poised to step out of shadows for sports store coup". The Guardian. Retrieved 3 April 2023.
84. Noor, Poppy (11 May 2018). "The Rise and Demise of Radar Radio". Vice. Retrieved 3 April 2023.
85. Butler, Sarah (2 May 2022). "'A more acceptable Mike Ashley': Sports Direct's owner gets a new boss". The Guardian. Retrieved 3 April 2023.
86. Kollewe, Julia (8 December 2016). "Sports Direct chairman criticises 'extreme campaign' as profits fall 57%". The Guardian. Retrieved 3 April 2023.

• 1964 births
• Living people
• English businesspeople in retailing
• English billionaires
• Newcastle United F.C. directors and chairmen
• People from Burnham, Buckinghamshire
• People educated at Burnham Grammar School
• People from Walsall