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Mike Ashley has many business interests (including Sports Direct) and they have made him a very wealthy man. When he bought Newcastle United in June 2007 and said “Newcastle attracted me because everyone in England knows that it has the best fans in football… don’t get me wrong. I did not buy Newcastle to make money. I bought Newcastle because I love football.”….it must have sounded like manna from heaven to the Newcastle support as they may have thought more along the lines of ‘Champions League’ rather than ‘Championship’.

 

http://www.therst.co.uk/coming-soon-ashley-and-the-vanishing-revenue/

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For the avoidance of doubt, I go by the username of buster on FF and wrote the article.

 

Anyone have any thoughts on it ?

 

I liked it, forwarded it to a few pals who don;t do forums. They did too.

 

Oh, and in case anyone cares (I can't imagine they will, but just in case) I am Henderson63, there.

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Looking at turnover doesn't always tell the full story. We made more money from the JJB deal but turnover decreased because we only showed the profit made as the sales no longer went through our books. the fact that turnover fell didn;t affect our bottom line.

 

That's not to say that the points that you are making aren't valid, but we need to be careful as turnover doesn't always reveal the full story.

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Looking at turnover doesn't always tell the full story. We made more money from the JJB deal but turnover decreased because we only showed the profit made as the sales no longer went through our books. the fact that turnover fell didn;t affect our bottom line.

 

That's not to say that the points that you are making aren't valid, but we need to be careful as turnover doesn't always reveal the full story.

 

Agree with your main point BD, but I think it's pretty widely accepted that Ashley gets access to massive advertising opportunities at a fraction of the normal rate card cost (and mostly free) from NUFC.

 

That in itself isn't necessarily a problem, but if NUFC is being starved of investment elsewhere / or is being run to always turn a profit, with one of the main income streams being syphoned off by the owner, then they are always going to struggle to compete in the EPL.

 

If Ashley thinks that model would work in Scotland, he must also put a much higher value on the ad space than the Club have ever got remotely close to generating before, even in the CLeague years. Otherwise the investment required to get us into the later stages of Euro competitions would far outweigh any Scottish Club's income from commercial activities.

 

The bottom line is that if we want rid of Tweedle Dum and Tweedle Dee, GreenCo, the hedge funds and Interpol fugitives in the short term, Ashley might have to be part of the answer - whether we (or Dave King) like it or not.

 

If ever there was a case for fans holding an genuinely influential shareholding in the Club, that particular dichotomy is it.

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Looking at turnover doesn't always tell the full story. We made more money from the JJB deal but turnover decreased because we only showed the profit made as the sales no longer went through our books. the fact that turnover fell didn;t affect our bottom line.

 

That's not to say that the points that you are making aren't valid, but we need to be careful as turnover doesn't always reveal the full story.

 

Thanks for the response , Bluedell.

 

Whilst appreciating what you say, I think there are sufficent signs regards what has happened at NUFC and how SD have structured and established contracts with Rangers to show that MA meant what he said at the SD AGM, when he replied to the question "I wonder if he (MA) could explain the benefits to Sports Direct in its relationship with Newcastle United and Rangers.”

 

........“Other than to say than it’s been beneficial to Sports Direct and therefore its shareholders, I don’t think it’s appropriate to comment.”

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Regards the quote from the Sports Direct AGM (Sept 2014)

I'll put up the full transcript between journalists and members of the SD board (including Ashely), regarding Newcastle and Rangers.

 

 

Q: "I’d like to address a question to Mr Ashley, please. I wonder if he could explain the benefits to Sports Direct in its relationship with Newcastle United and Rangers."

 

Pause of 27 seconds

 

A: “Other than to say than it's been beneficial to Sports Direct and therefore its shareholders, I don't think it’s appropriate to comment.”

 

Q: "Newcastle have said publicly, for example, that Sports Direct don’t pay for any stadium advertising or perimeter advertising at St James' Park - and there’s obviously a lot of it - and I wonder what the benefit is to you and whether you could give a rough estimate of what it’s worth in financial terms please."

 

A: “I think I summed it all up in my previous statement. Those relationships are very beneficial to Sports Direct and its shareholders. And I think that nothing else needs to be said."

 

Q “With due respect, can I then reverse the question? What is the benefit to the relationship they have with Sports Direct for Newcastle United, in which you are the owner, and Rangers, in which you have a shareholding? What is the benefit to those institutions?"

 

Keith Hallawell intervenes:

 

“This is really… That isn’t for the Annual General Meeting of this company. The first question was, in relation to what benefit the company gain from that. I think in relation to what Manchester United, sorry Newcastle United, and Rangers gain, you’d have to ask them. There’s no-one from the board of those companies here. It’s not to do with this company."

 

Q: "Well, there is one member on the board (Ashley)."

 

Another director: “Yes, but this is a Sports Direct annual general meeting."

 

Q: “I know. I’m aware of that. I was just correcting that error. Can I direct a question to Mr Ashley? Sports Direct now process and profit from the shirt sales and merchandising through Newcastle United, the website and the club shop. Can you explain how much this trade is worth? Is it a significant part of the business to Sports Direct and do you, Newcastle, share in that profit?

 

Ashley: “I’ll only answer the same answer as I gave before."

 

Q. "Okay. A follow-up question. A Rangers director stated last week that Mr Ashley had bought the naming rights to Ibrox two years ago for £1. First question, is this true? Second question, St James’ Park was once named Sports Direct Arena and the suggestion is the same could happen to Ibrox. Could he comment on that?

 

A: “I’ll only answer the same answer that I answered before.”

 

Q: “Okay, thank you."

 

http://www.mirror.co.uk/sport/football/news/after-five-years-silence-newcastle-4197405

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Thanks for the response , Bluedell.

 

Whilst appreciating what you say, I think there are sufficent signs regards what has happened at NUFC and how SD have structured and established contracts with Rangers to show that MA meant what he said at the SD AGM, when he replied to the question "I wonder if he (MA) could explain the benefits to Sports Direct in its relationship with Newcastle United and Rangers.”

 

........“Other than to say than it’s been beneficial to Sports Direct and therefore its shareholders, I don’t think it’s appropriate to comment.”

 

that single statement should alarm every rangers supporter and send a shiver down their spines. we will effectively become a subsidiary company to sports direct. he wont give a flying fuck about rangers.

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