Mike Ashley hands over reins at Sports Direct to his son-in-law, making the 31-year-old one of the youngest CEOs in the FTSE 250
- Ashley, 56, CEO of Fraser Group, will remain on the board as executive director
- His successor will be Michael Murray, who is engaged to Ashley’s daughter Anna
- The 31-year-old is set to take over in May next year
- A pay and bonus deal is being drawn up on basis that Murray will become CEO
Billionaire Mike Ashley has confirmed he is stepping down from Sports Direct and handing over the reins to his son-in-law.
Ashley, 56, chief executive of parent company Frasers Group, is going to remain on the board as an executive director.
His successor will be Michael Murray, who is engaged to be married to Ashley’s daughter Anna and who recently vowed to ‘rip up’ what Ashley had done in the 30 years since he founded the company.
Next generation: Michael Murray with fiancée Anna Ashley
The 31-year-old, who is set to take over in May next year, would be one of the youngest chief executives in the FTSE 250.
Fraser told investors that a pay and bonus deal is currently being drawn up on the basis that Murray will become chief executive.
Murray has drawn controversy for £15million in fees paid to his consultancy over the last four years for property services.
Shareholder advisory groups accused Ashley of running the company like a family ‘fiefdom’, but it said Murray’s cut of the ‘value created’ was justified.
Ashley has been one of the High Street’s most colourful characters since founding Sports Direct in 1982.
He has grown it into a £3.2bilion giant. He and his family hold a 64 per cent stake.
‘The group’s elevation strategy is transforming the business and receiving positive feedback from consumers and our brand partners, especially on projects such as the new Oxford Street Sports Direct which opened in June 2021,’ Fraser said today.
‘The board consider it appropriate that Michael leads us forward on this increasingly successful elevation journey.’
Mike Ashley, who founded Sports Direct in 1982, will remain on the board as executive director
Frasers also revealed on Thursday that its profits plunged for the past year after sales were hit by enforced high street closures during the pandemic.
The retail giant said pre-tax profits dived by 94.1 per cent to £8.5million for the year to April 25, compared with £143.5million in the previous year.
Ashley said: ‘The group is continuing to invest in its physical and digital elevation strategy and our omni-channel offering is growing in strength.
‘Our stores in the UK have reopened above expectations and our online channel continues to significantly outperform pre-Covid-19 periods.
‘Nonetheless, management remains of the view that there is a high risk of future Covid-19 pandemic restrictions, likely to be over this Winter and maybe beyond.’