Mike Ashley has asked Merrill Lynch to look into strategic options for his growing personal empire, Sports World International, including its sale to another investor or a possible flotation. Adding that he plans to make a decision on this in the New Year, Ashley reportedly indicated in a short conference call with some British financial journalists last Friday that such a move would allow him to raise more funds for Sports World’s expansion in Europe, turning it into the world’s most profitable sporting goods retailer.
The conference was organized by Ashley’s new public relations agency in the UK to introduce the 42-year-old British entrepreneur, who has been extremely secretive and publicity-shy until now, to the press. It accompanied the event with the release for the first time of a picture of this chubby man, who has been described by industry officials as extremely unpretentious, running a very tight ship in order to maximize returns on his multiple investments. Making an exception to our habits, as a present to our readers, we are running this picture of Mike Ashley next to the bespectacled and smiling chief executive of his retail operations, David Forsey, in this extra pre-Christmas issue of our publication (we had promised to deliver 40 issues for this year, up from 38 in 2005):
The former squash champion, who has quickly become the biggest sporting goods retailer in the UK, refused to discuss the value of his business, which is said to be worth between £1 billion (€1.5bn-$2bn) and £2.5 billion (€3.7bn-$4.9bn). Sports World last declared a net profit of £74.4 million (€110.9m-$146.1m) on 45 percent higher sales of £905 million (€1,350m-$1,780m) for the financial year ended Apr. 24, 2005. No other figures have been made available for the group’s most recent performance, but aside from the acquisition of several brands, the number of stores is said to have risen to 380 from less than 200 since then.
Besides his Lillywhites, Sports Soccer, Sports World, SportsDirect.com and Original Shoe Company stores in the UK, Ashley owns the former Disport in Belgium and has retail investments also in Ireland and Slovenia. He declined to comment whether he plans to make a bid for Blacks Leisure Group, in which he recently acquired a stake of just under 30 percent.
