Mike Ashley is set to derail the Dave King revolution by getting back his £5m loan.
Two days after the South African based businessman sneered about repaying the loan Ashley has fired back warning ‘Sports Direct is not a bank’.
Since his March takeover at Ibrox Mr King, once described as a glib and shameless liar by a South African judge, has constantly talked about renegotiating the club’s merchandise deal which helped Charles Green finance the three year old club.
Ashley has a 9.8% holding in the club and twice provided the finance to maintain last season’s Championship challenge while others issued statements from afar.
While not repaying loans may be fair game in South Africa Mr King would be well advised not to bring those practices to the United Kingdom with the massive sports-ware giant Sports Direct not the type of company to mess around with.
Ashley has called a General Meeting on Friday to repay the £5m loan and get answers on why the company failed to find a nominated adviser to maintain their listing on the Alternative Investment Market.
The Newcastle United owner rarely deals directly with the media but according to today’s Daily Mirror Ashley will be issuing a statement today laying down the law.
In light of the Mirror Group’s phone hacking issues it can be fairly certain that the story has been obtained by legal means.
According to the London-based tabloid: “The statement, seen by the Mirror, adds: “It should not be forgotten that, at the end of the day, Sports Direct is not a bank.”
If Mr King refuses to pay up Ashley has a number of options open as well as having security over the club’s main assets including the iconic Broxy Bear.
Speaking about the £5m loan on Monday Mr King said: “I don’t see the Ashley loan being a loan in isolation. In fact, I don’t see it as a loan, quite frankly.
“It is one of those situations we will certainly discuss with Sports Direct. But I don’t think the club should be repaying the loan. If we have to, we will. But I’d much rather see funds going into the club, rather than repaying that loan.”
If Mr King wants to pick and choose which loans he wishes to repay he may find the small pool of potential investors in the club reduced even further.