The secretive sportswear billionaire who owns Lillywhites and Sports World is understood to have built a 10% holding in rival retailer JJB. The revelation about Mike Ashley’s stake – which is held through a contract for difference (CFD) – is likely to spark speculation about whether he might launch a bid for JJB. But it will also reignite the debate about the disclosure of stakes held through derivatives such as CFDs.
If Ashley held the shares directly, he would have had to declare his holding once it topped 3%. However, because the shares are held by securities firm Man Financial – to cover his derivative position – he is under no obligation to declare his interest. City advisers to JJB have long suspected that the Man Financial stake was acquired to cover a derivative position held by Ashley – but they have been unable to force him to declare his interest. However, this weekend friends of Ashley confirmed that the secretive billionaire controlled a 10% stake through a CFD with Man Financial.
News of Ashley’s stake is bound to infuriate David Whelan, the chairman and founder of JJB. The two men are known to despise each other.In 2000, Ashley blew the whistle on the price fixing of replica football shirts by rivals – including Whelan – when he complained to the Office of Fair Trading. The OFT found JJB guilty and fined the retailer £6.3m. Shares in JJB closed this week at 180p. Whelan and his family still own a 41% stake in the business.