Sports Direct uses Mike Ashley's sibling for some overseas deliveries - report

22nd Aug 2016 14:41

(ShareCast News) - Sports Direct pays some takings from web customers outside the UK to a delivery brokerage owned by founder Mike Ashley's brother, according to a report.Financial Times added that the FTSE 250-quoted retailer did not disclose this in its published accounts.The newspaper noted this expanded the list of transactions between the sporting-goods retailer and personal connections of billionaire Ashley.Sports Direct operates local-language websites that serve some 33 other countries.Earlier this year, in January, it emerged Ashley had put his daughter's 26-year-old boyfriend at the helm of Sports Direct's property team via a consultancy contract.That contract could see the boyfriend get paid millions of pounds.Meantime, Financial Times reported that Cleethorpes-based Barlin Delivery was owned by John Ashley, older brother to Ashley. It received a share of the revenue from Sports Direct's website orders sent overseas.These orders accounted for about 6% of Sports Direct's £2.9bn revenue, the report said, adding Barlin made about £300,000 a year in profit from the arrangement.Financial Times reported that the sporting goods retailer's website explained Barlin's role was only to deliver goods, not sell them.Barlin owned no trucks and employed no drivers; it paid couriers such as DHL to collect parcels from a Sports Direct warehouse, the newspaper reported.Companies are generally required to give details of dealings they have with related parties.Sports Direct said its auditors, Grant Thornton, had found no disclosure was required in relation to Barlin.