The legal dispute involving Mike Ashley and Sports Direct against Newcastle United, Adidas, and JD Sports has now reached a resolution. This case revolved around the former club owner’s efforts to ensure that his Sports Direct retail chain could continue selling official Newcastle United kits.
Ahead of the 2024/25 kit launch, it was revealed that purchases would be limited to Newcastle United, Adidas, and JD Sports.
Ashley and Sports Direct sought a court injunction by 17 May 2024, aiming to secure time for potential kit deliveries to Sports Direct before the expected launch on 7 June 2024.
However, on 17 May 2024, a three-judge panel at the Court of Appeal unanimously rejected the injunction request, meaning Sports Direct would not be stocking the new home kits when they were released on 7 June 2024.
Despite this ruling, a full court case was scheduled for February 2025, with Mike Ashley and Sports Direct pursuing legal action against Newcastle United’s current owners, along with Adidas and JD Sports.
Court documents filed in 2024 stated:
“The Claimant argues that its inability to sell the Club’s Replica Kit would result in financial losses, damage its reputation, and negatively impact consumers by limiting their retail choices and price competition.”
However, a ‘Tomlin Order’ has now been issued.
This order signifies that the involved parties have agreed to a settlement, halting all further legal proceedings. However, should any party fail to uphold the terms, the agreement can be legally enforced without initiating new litigation.
As a result, instead of proceeding with the case, Mike Ashley and Sports Direct have finalized a confidential settlement with Newcastle United, Adidas, and JD Sports. This agreement is legally binding and enforceable if breached by either side.
The Tomlin Order states:
Tomlin Order Ashley 1
Tomlin Order Ashley 2
The Mag report – 24 October 2024:
A date was set for Mike Ashley’s legal confrontation with Newcastle United’s owners, marking 40 months since the club’s takeover in October 2021.
During that time, thousands of Newcastle fans gathered outside St James’ Park to celebrate Ashley’s departure after a 14-year tenure marked by financial exploitation and disappointment for supporters.
It was unrealistic to expect Ashley to step away quietly, as he employed various tactics to disrupt the club’s rebuilding efforts under new ownership.
He was particularly angered when the new owners refused to let him retain a minority stake or continue his free advertising presence at St James’ Park.
Earlier this year, a fresh legal battle unfolded between Mike Ashley and Newcastle United’s owners, also involving Adidas and JD Sports.
By May 2024, Ashley and Sports Direct had lost a Court of Appeal bid against Newcastle’s current ownership (see below).
Ashley attempted to force Newcastle United to supply replica kits to Sports Direct, despite the club’s decision to restrict sales to its own shops, Adidas, and JD Sports.
Similar policies exist at clubs like Celtic, Leicester, and Leeds, where Ashley has not pursued legal action, suggesting his objections were specifically targeted at Newcastle’s new owners.
Ashley and Sports Direct had aimed for an injunction by 17 May 2024 to allow time for kit deliveries before the expected launch on 7 June.
However, on 17 May 2024, a three-judge panel at the Court of Appeal unanimously denied the request, preventing Sports Direct from selling the new home kits on release day.
Despite this ruling, a court case was still likely, as Mike Ashley and Sports Direct pushed forward with legal claims against Newcastle’s current ownership.
A hearing date was subsequently set for 2 February 2025, with Ashley facing Newcastle United, Adidas, and JD Sports in court.
Initially, the Competition Appeal Tribunal (CAT) ruled that Mike Ashley and Sports Direct had no valid expectation of continued kit supply.
Ashley’s legal team then pursued an injunction, which was rejected by the Court of Appeal.
Ahead of the 2 February 2025 hearing, newly released court documents stated:
“These proceedings concern a dispute between the Claimant and the Defendants over the Club’s decision to appoint Adidas UK as its Replica Kit manufacturer and grant exclusive marketing and sales rights to JD Sports, while ceasing supply to the Claimant.
“The Claimant filed a legal claim on 14 March 2024, alleging that the Club held a dominant position in the retail and wholesale market for Replica Kits in the UK and that its actions constituted an abuse of that position. Additionally, the Claimant argued that the Club’s agreements with Adidas UK and JD Sports breached Chapter I of the Competition Act 1998.
“The Claimant asserts that its inability to sell the Club’s Replica Kit would lead to financial losses, reputational damage, and restrict consumer choices and price competition.”
The court hearing was announced as Newcastle United prepared to open two new club stores by November—one at St James’ Park and another at the Metrocentre.
Mike Ashley had previously shut down all club stores except the one at St James’ Park to drive business toward Sports Direct.
Newcastle United Store
The Mag report – 17 May 2024:
Mike Ashley and Sports Direct have lost a Court of Appeal challenge against Newcastle United’s current ownership.
This marks the latest chapter in the former NUFC owner’s ongoing legal disputes with the club’s new proprietors.
Ashley attempted to compel Newcastle United to continue supplying his stores with replica kits, despite the club’s decision to limit sales to official outlets, Adidas, and JD Sports.
Ashley and Sports Direct sought an injunction by 17 May 2024 to facilitate kit deliveries before the launch on 7 June.
However, on 17 May 2024, a three-judge panel at the Court of Appeal unanimously dismissed the request, preventing Sports Direct from selling the 2024/25 home kit.
A full court case seemed inevitable, with Ashley and Sports Direct pursuing legal action against Newcastle United’s new ownership.
Mike Ashley Newcastle United
LBC report – 17 May 2024:
Sports Direct has failed in its Court of Appeal challenge over Newcastle United’s exclusive kit supply agreement with JD Sports.
The retailer, part of Mike Ashley’s Frasers Group, had sought a temporary court order to force Newcastle United to supply its stores with 2024/25 Premier League kits.
Last month, the Competition Appeal Tribunal (CAT) unanimously rejected the request, stating Sports Direct had “no reasonable or legitimate expectation” of continued kit supply from former manufacturer Castore.
The tribunal also ruled that requiring Newcastle United and Adidas to supply Sports Direct would hinder competition rather than promote it.
Sports Direct then brought its case to the Court of Appeal, arguing that the exclusivity deal was unlawful under competition law.
However, three judges dismissed the request.
Sir Geoffrey Vos, sitting with Sir Julian Flaux and Lady Justice Andrews, noted that while the tribunal erred in ruling there was no serious case to answer, its decision to deny the injunction was justified.
Sir Geoffrey stated: “The tribunal correctly determined that, while damages may not be an adequate remedy for either side, the balance of convenience favored refusing interim relief and prioritizing a swift trial.”
He continued: “The trial will be fiercely contested, but the harm to Newcastle United from an erroneous injunction would be far greater than the impact on Sports Direct from missing one or two seasons of kit sales.”
This keeps all key details while refining the language and structure for readability. Let me know if you need further adjustments!
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