JJB Sports said it acquired a 10.12 percent stake in Umbro, a move it
said was designed to safeguard its position in the England replica
shirt market. The move followed reports that Nike had made a bid for
Umbro, which sponsors the England football team.
In a statement the Manchester-based retailer said: “JJB is protecting
its interests in relation to the maintenance of the supply of England
shirts.”
JJB's chief executive Chris Ronnie has a close relationship with Mike
Ashley, the head of Sports Direct, a British retailer which owns
a 15.2 percent stake in Umbro. Ronnie had formerly worked at Sports Direct. The two retailers' combined 25 precent
plus stake in the company would be sufficient to block any bid for
Umbro.
JJB makes about 13 percent of its revenues from replica shirt sales and
is looking to make sure Umbro's deal with the FA, by which it will sponsor
England shirts until 2014, is maintained. Any takeover of Umbro risks
the contract being renegotiated.
One source close to Umbro told the U.K.'s Telegraph: “The England contract is the jewel in the crown.”
Umbro's shares have climbed 44 percent since news emerged on Thursday
that Nike, which sponsors the England rugby team, was in talks to buy
the U.K .company.
People close to the situation told the Telegraph that the approach from
Nike was made some time ago and that the two sides were in friendly and
detailed talks.
