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There’s opportunity in the stock of Dick’s Sporting Goods (DKS), but it will take a major effort from the company’s management to turn its investment in JJB Sports (JJB) around.

Dick’s Sporting Goods made an investment in JJB Sports – the UK equivalent of The Sports Authority – committing up to £30M back in April of 2012. It appears that JJB, which is on the brink of going under, will go under a restructuring plan put together by the two largest debt holders: Invesco and DKS. Both companies will then have to buy all the debt JJB.

DKS: London Calling - JJBsportschart

The situation is a bit precarious considering that Europe is undergoing a consumer spending and debt crisis.  But there could be value in this deal in the sense that it will help Dick’s grow its overseas business. Of course the market got excited, rallying shares in London trading. But think about this: shares are essentially flat year-to-date (as of writing), pegging JJB Sports at a value of just under £22 million.