Yahoo Finance Mike Ashley to pay future son-in-law £20.9m before he becomes Frasers chief
Mike Ashley’s future son-in-law will be paid £20m in consultancy fees before he takes over as chief executive of Frasers next month.
Michael Murray, 32, currently holds the role of “head of elevation” at the retailer, previously known as Sports Direct, and has been in charge of all property deals.
Frasers said that it was now “necessary” to settle the bill between Frasers and MM Prop, Mr Murray’s property consultancy, before his formal appointment as chief executive on May 1.
The final payment by the group to Mr Murray will be £20.9m, the company said in an update to investors.
Frasers added: "The board has now completed its assessment, with the assistance of independent third party experts."
Mr Murray was entitled to up to 25pc of any value created by the services he provided to the group.
The board said the agreement had “delivered significant financial and strategic value” for the company, and Frasers also received a discount as the deal came to an end.
Mr Murray added he was “very excited to be leading Frasers in its next chapter.”
He has been looking to modernise Sports Direct stores and expand its luxury offering through department store chain Flannels, which it also owns.
He is engaged to be married to Mr Ashley's daughter Anna and is set to receive a £100m bonus if the £15 share target is reached for a consecutive 30-day period at any point over the next four years. Mr Ashley will become chairman of the group.
Mr Ashley was previously executive deputy chairman of Sports Direct until 2016, when long-serving chief executive Dave Forsey resigned.
He founded the business as a single store in Maidenhead in 1982 and has grown it into a £3.4bn firm with almost 1,000 stores.
It has amassed a stable of brands through acquisitions, often buying them out of administration. It owns Evans Cycles, Game, Jack Wills, and House of Fraser, among others.
Another payment of £5.4m was made to MM Prop in 2019, according to Frasers’ most recent annual report.
