JJB Sports spent £3.7m in the past 18 months on goods and services from companies linked to its own directors.

The retailer yesterday disclosed what it has spent with companies connected to JJB Sports executive chairman Sir David Jones and former chief executive Chris Ronnie.

The Times newspaper reported that Source Lab, a wholesaler run by Ronnie’s brother, Cotton Traders, which is chaired by Jones and Retail Gateway, which is owned by Jones’ son, received at least £3.7m between them.

A JJB spokesman told The Times: “All these related party transactions are transparent and the level of them has been reduced substantially.”

Spending with Source Lab has fallen by nearly half since January when Ronnie was suspended. JJB no longer uses Retail Gateway.

Ronnie told the newspaper: “JJB has been using Source Lab for eight years, long before I joined the company.”

Details of JJB’s connections with the companies followed controversy earlier this year when it was revealed that Jones had accepted a £1.5m loan from Mike Ashley, Sports Direct’s founder, without declaring it to shareholders.

JJB and Sports Direct are both being investigated by the OFT and SFO over cartel concerns.

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