Sports Direct International plc (LON:SPD) owner Mike Ashley has dismissed claims he reneged on a £15mln deal with a finance expert, saying their negotiations were merely “drink banter”.
Jeff Blue, a former banker and colleague, is suing Ashley at London’s High Court.
Blue claims that in 2013 Ashley had promised him £15mln if he could help double Sport’s Direct’s share price within three years.
The alleged agreement was made during a boozy meeting at the Horse and Groom pub near the retailer’s Oxford Street store, the high court heard yesterday.
Blue said he only received £1mln in May 2014.
Ashley said the £1mln he paid was a discretionary bonus rather than a downpayment on a deal.
Ashley, who also owns Newcastle United, said in a written statement: "I can't believe that [Mr Blue] is now trying to take me for £14mln off the back of some drink banter that he is seeking to engineer into something more."
Blue's claims an 'opportunistic try-on', according to Ashley's lawyers
Lawyers for Ashley accused Blue of "making up evidence" in the second day of the hearing.
David Cavender QC, who leads Ashley's legal team said the claim was an “opportunistic try-on”, adding that the sportswear tycoon could not recall details of conversations in the Horse & Groom, "particularly in the light of the amount of drinking".
"He does recall 'that there was a lot of banter and bravado'.
"He does not recall any discussion about whether Mr Blue would be paid a sum of money if the share price reached £8 a share."
Ashley vomited in fireplace at pub meeting, court hears
The court heard that Ashley regularly held senior management meetings during “lock-ins” at the Green Dragon pub in Alfreton near Sports Direct’s warehouse.
During one meeting, Ashely allegedly vomited into the fireplace at the pub after challenging a young Polish analyst to a drinking competition.
Blue said the rules of the drinking game, which involved dozens of pints followed by vodka chasers, were that whoever left the room first was to be declared the loser.
“After approximately 12 pints and chasers Pawel [Pawlowski] apologised profusely and had to excuse himself,” Blue stated in written evidence submitted to the court. “Mr Ashley then vomited into the fireplace located in the centre of the bar, to huge applause from his senior management team.”
Anecdote from Mike Ashley, Sports Direct meeting: Pints, vodka chasers, triumphantly vomiting into a fireplace. Statement from ex-colleague pic.twitter.com/acmP6DOS9K
— Patrick Gower (@PatrickGower) 3 July 2017