Mike Ashley suffers humiliating third relegation - Newcastle United supporters have last laugh
Mike Ashley has suffered another humiliating relegation - with his retail giant Frasers Group demoted from the FTSE 100.
A stock market index comprising the UK’s top 100 publicly traded companies, Frasers Group was founded by Ashley in 1982 and employs over 30,000 people. It is predominantly known for the Sports Direct brand - which propelled the former Newcastle United owner to billionaire status - but also owns several leading retailers like GAME, Flannels, Jack Wills, USC, Everlast, Slazenger and Lonsdale.
They have been a staple of the FTSE 100 since 2022 but the share price has plummeted in recent months. At the time of writing, Fraser Group has lost 16 per cent of its value in the past month.
A feud with Boohoo, in which Frasers own a sizable stake, over the company’s leadership has contributed to the fall. Ashley also sought legal action against JD Sports, Adidas and Newcastle over their exclusive kit deal, a case he lost.
The ex-Toon owner, an unpopular figure on Tyneside throughout his 14-year reign, owns 70 per cent of Frasers’ shares. He has taken a back seat from the company in recent years, with his son-in-law, Michael Murray, replacing him as CEO in 2022.
This change came less than a year after Ashley netted £300million from selling Newcastle to a Saudi-backed consortium. An irony for supporters is how the Sports Direct tycoon is still suffering relegations, while the club march forward under new leadership.
The Magpies were twice demoted to the Championship under Ashley’s guidance but took less than two years to reach a cup final and secure Champions League football following his exit. Newcastle fans can sleep well knowing his latest defeat has nothing to do with the fortunes of their football team.