At the heart of any flotation, there is a deal struck between the company management and the investing public. Ordinary people put their money into the business and, in return, the executives promise to look out for the public’s interest.

This can be irksome. Executives who run listed companies may have to spend tedious hours selling the same story to one institutional investor after another. They will also have to provide details of their pay and perks to the general public.

Mike Ashley has tried to operate in the public markets without paying respect to the public’s money. When he floated his business in March, he said he wanted to raise money to fulfil his global ambitions. Instead, he has done little more than dash investor hopes. He has spent some of his £930 million personal proceeds of the float on trophy assets such as a stake in Newcastle United. He has fallen out with his chairman and a clutch of advisers. He has avoided the press and declined analysts’ requests for greater clarity on the operation of the business.

Sports Direct is worth less than half what it was five months ago. More than £1 billion of value has been destroyed, some of it washed away by a wet summer, more of it sunk by Mr Ashley’s failure to engage with the market.

To be fair, Mr Ashley is just beginning to show some recognition of the need to be more transparent with the markets. Yesterday, he continued to be brief, even brusque, with reporters and about as likely to be caught on camera as the Loch Ness Monster, but at least he answered some questions. Today, he starts a three-day tour of institutional investors. In September, he will invite analysts up to Sports Direct headquarters to help them to understand the business better.

Still, Sports Direct is a shady company. It does not provide like-for-like sales figures, as others do. It does not explain itself sufficiently to the markets. The root problem is Mr Ashley’s role in the business. He wants to run a publicly quoted company but behave like a private entrepreneur. He serves as executive deputy chairman, which means he keeps all the power but takes none of the responsibility for dealing with the market. The chairman and the chief executive are positioned to deal with the pesky investors. Sports Direct is now seeking its second chairman in a matter of months. There is only one man who should do the job and it is Mr Ashley himself.

Until he does, quirky entrepreneurs around Britain will continue to curse his name. Until he shows that he takes his responsibility to the investing public seriously, any private businessman looking to float his company will have to deal with the Ashley discount.

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