Sports Direct founder said to be sued over 15 million pound share offer

The founder of UK sportswear retailer Sports Direct, Mike Ashley, is reportedly being sued over an offer made with an investment banker in 2013, according to news reports. Former Merrill Lynch banker Jeff Blue, is said to have made the deal with billionaire Ashley over drinks in a London pub which would see Ashley pay the banker 15 million pounds if he could get the company off the City's 'blacklist' and double the share price of Sports Direct within three years.

The billionaire reportedly agreed to pay Blue if he managed increase the company's share price from 4 pounds to 8 pounds, a move which see Ashley's vast fortune increase once more as he own more than half of Sports Direct. Ashley is said to have initially offered the banker 10 million pounds, but agreed to raise his incentive to 15 million pounds after Blue stressed a share price of 8 pounds was a "high target."

According to court documents seen by the Times, three bankers from investment bank Espirito Santo were also said to have been present, with suggesting that a fee of 20 million pounds would be appropriate. Sports Direct shares went on to close at 808.5 p on February 25, 2014 after several institutional investors purchased shares, which should have prompted the payment.

However, court documents state that Ashley claims he had consumed a "a considerable amount of alcohol" that night and any conversation made was just "banter." As Ashley denies knowledge of any deal being made, Blue is said to be suing him for 14 million pounds, 1 million less as the Sports Direct founder paid him 1 million pounds in May 2014. Although, this sum is said to have been a reward to Blue for helping Ashley get investors as the banker was head of mergers and acquisitions at Sports Direct, but left his position in February 2015.