Wednesday, 26 July 2017

Mike Ashley Wins

You probably followed recent reports of the evidence in the claim against Mike Ashley. The trial judge handed down his judgment today in the High Court. This final paragraph admirably encapsulates his findings. 

"In the course of a jocular conversation with three investment bankers in a pub on the evening of 24 January 2013, Mr Ashley said that he would pay Mr Blue £15 million if Mr Blue could get the price of Sports Direct shares (then trading at around £4 per share) to £8. Mr Blue expressed his agreement to that proposal and everyone laughed. Thirteen months later the Sports Direct share price did reach £8. But no reasonable person present in the Horse & Groom on 24 January 2013 would have thought that the offer to pay Mr Blue £15 million was serious and was intended to create a contract, and no one who was actually present in the Horse & Groom that evening – including Mr Blue – did in fact think so at the time. They all thought it was a joke. The fact that Mr Blue has since convinced himself that the offer was a serious one, and that a legally binding agreement was made, shows only that the human capacity for wishful thinking knows few bounds." 

The case was Jeffrey Ross Blue v Michael James Ashley [2017] EWHC 1928 (Comm).