Mike Ashley cleared the way today for Nike to complete its £285 million takeover of Umbro by selling the bulk of Sports Direct’s blocking stake in the UK company.

In a statement this afternoon, Sports Direct revealed that it had sold two thirds of its 29.9 per cent shareholding in Umbro to the US sportswear giant for nearly £60 million and given an "irrevocable undertaking" to pass on the remainder.

The move comes only two days after Mr Ashley described the stake as a bargaining chip designed to ensure that Sports Direct’s terms with Umbro would not change for the worse under Nike’s ownership.

It is certain to spark yet more controversy, given that it came only hours after another surprise profit warning from Umbro, blamed on Sports Direct and other “key customers” refusing to buy up replica England football shirts.

Sports Direct is contractually obliged to take 65 per cent of all replica tops that Umbro makes for its Sports World and Lillywhites stores.

However, demand for the shirts on the high street has plummeted, given England’s failure to qualify for the finals of the Euro 2008 championship next summer.

Umbro said: “In relation to Sports Direct, Umbro continues to work closely with Sports Direct to find a mutually acceptable way forward regarding these matters.

“Umbro has already agreed certain changes to the contractual arrangements, involving increased support of retail sell-through of Umbro product.

“However, no final resolution has yet been achieved and these discussions are continuing.”

The company insisted that the Takeover Panel had ruled the discussions were completely separate to any negotiations over the Nike deal.

An Umbro spokesman conceded that the company could, in theory, take legal action against Sports Direct but thought that it was in both parties’ best interest to sit down and find a solution.

JJB Sports, which owns a 10 per cent interest in Umbro, was not immediately available for comment.

Mark Parker, the president and chief executive of Nike, said that the deal today gave the group a “strong platform” to proceed with the acquisition of Umbro.

He added: “We remain fully committed to our compelling offer for Umbro, which continues to have the support of both Umbro's board of directors and the Football Association.”

The Umbro deal will be a further boost to Nike's plans to dominate the world of football.

Mr Ashley joked this week that he believed Nike had swooped on the 83-year-old company because it was "sulking" over losing out to adidas to supply the French and German national football teams.

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