Mike Ashley loses appeal against Newcastle United owners in Sports Direct kit blow

Mike Ashley and Sports Direct have lost a Court of Appeal bid against the current Newcastle United owners.

Sports Direct, owned by Ashley's Fraser Group, took his former club to the Court of Appeal to secure an injunction that would prevent the club from selling next season's new Adidas shirts through rivals JD Sports. Ashley had asked for a temporary court order forcing his former club to supply Sports Direct with a replica kit for the upcoming season.

It comes after the Competition Appeal Tribunal (CAT) last month unanimously rejected the retailer's request, concluding that it had "no reasonable or legitimate expectation" of supply from current manufacturer Castore. To add, the suggestion Adidas and the club were obliged to continue provision would be "a significant fetter on competition".

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Sports Direct then brought a bid for an interim injunction to the Court of Appeal to argue Newcastle's deal is "an unlawful anti-competitive agreement". Three judges rejected the request on Friday, stating the right decision had been made in not granting the injunction.

Sir Geoffrey Vos, sitting with Sir Julian Flaux and Lady Justice Andrews, said: "The tribunal was right to think that, though damages would not be an adequate remedy for either side, the balance of convenience favoured refusing interim relief and ordering a speedy trial."

"The trial will no doubt be hard fought, but the damage to Newcastle United will be far more fundamental if the injunction is wrongly granted than the damage that will be done to Sports Direct if it misses one, or even two, seasons' supply."

Newcastle's upcoming Adidas kit promises to be one of the most sold in the country this summer as excitement builds on Tyneside. Sports Direct insist around 60 per cent of total shirt sales happen at the time of a kit launch, with the Magpies' new offering arriving on June 7.

A court case on the matter is almost certain to go ahead, with judge Vos admitting it will be 'hard fought' should it get to trial.