Sports Direct, the retailer owned by Newcastle United owner Mike Ashley, will go to court to fight for its 28.5 per cent stake in outdoor goods company Blacks Leisure, continuing an ongoing dispute with administrators Ernst & Young.

Ashley announced yesterday that Newcastle United, the English Premier League soccer club he owns, is off the market, and plans to sell the naming rights to the club's famous St James' Park stadium. However, the furore over that is just one of the situations currently on the businessman's plate.

'The row has been rumbling since KSF – the UK arm of failed Icelandic bank Kaupthing – collapsed last October, taking Sports Direct's holdings of 28.5 per cent of the voting rights in Blacks and 11.9 per cent of JD Sports with it,' reports The Independent newspaper, adding: 'Because the purchases were financed and held by KSF, Ernst & Young maintains that they belong to it, as administrator, and the company said yesterday it is seeking a court ruling on ownership of the shares.'

• Ashley puts Newcastle United stadium naming rights up for sale

"Sports Direct is in the process of taking an action against Kaupthing Singer & Friedlander and its administrators, Ernst & Young," said a statement from Sports Direct. "Those parties are aware of our determination to protect and vindicate our legal rights and the situation remains ongoing."

'Sports Direct, which is 71 per cent owned by Mr Ashley, has already written off £53m in relation to the holdings, taking its profits for the year to April down to just £11m, from £119m the year before,' notes The Independent.