Sports Direct shares tanked in the FTSE 100’s trading open.
Shares plunged to as low as 641.40p before recovering slightly to around 661.69p. However, this is still 2.55p lower than at the close of the previous trading session.
Elusive billionaire Mike Ashley, who owns Sports Direct, recently lent Glasgow Rangers £10 million to stop the football club falling into bankruptcy.
However, Ashley’s loan came under close scrutiny as half of that amount was used to repay Ashley himself from a previous £3 million loan he doled out to the troubled football club.
“Sports Direct shares are bottom of the FTSE this morning on negative read-across from a brace of bad news regarding Glasgow Rangers,” said Mike van Dulken, Head of Research at Accendo Markets in an emailed statement.
“Firstly, auditor Deloite has raised questions over whether Ranger’s operating company can continue as a going concern, while, secondly, a venue has finally be found for its March 4 Extraordinary General Meeting). This is being called by South African former director Dave King who hopes to oust the board, with the new venue needed after the original London hotel pulled out on fears of being swamped by angry supporters.
“Could another Mike Ashley bet be at risk?”
Meanwhile, British politicians summoned Ashley to Westminster to answer questions over the loan.
“We need to bring some transparency into the affairs of Mike Ashley and into the affairs of Rangers,” said Central Ayrshire MP Brian Donohoe to the Mirror newspaper.