Background

The defendant, A, was the founder of a large company, Sports Direct, and owned over 60% of its shares. The claimant, B, started working for Sports Direct in November 2012 as a consultant, and was paid under a management services agreement. On 24 January 2013, A and B met with others at a pub in London. They drank for much of the evening. In the course of talking, the question was asked of whether, and how, B should be rewarded with a bonus payment if the share price in Sports Direct shares rose above £8 per share. A figure of £15m was mentioned in the conversation as an appropriate level for a reward. In February 2014, Sports Direct's share price rose above £8. B contacted A, claiming that he was entitled to a bonus payment. In May, A transferred £1m to B, but did not give him the sum discussed as a bonus at the pub in November 2012. In December, B gave notice to A of termination of the management services agreement. In September 2015, he commenced proceedings.

Claim dismissed.