The symbiotic link between NUFC and Sports Direct

Just how important is NUFC to Ashley’s wider retail empire?

With his retail arm in annual ascendancy share wise and the fertile foreign retail markets there for the taking I’d say that he is looking to retain his interest in NUFC for at least the next decade.

Is the Sky money about to dry up? Doubtful.

With that in mind he really needs NUFC as a marketing channel especially with the more lucrative US market, in terms of football and also sports retail there for the taking.

Strap yourself in for the long haul here ladies and gentlemen.

 

I just don't get the stranglehold he keeps on advertising within SJP. Would it hurt him to open up a little and bring in some revenue for the club by making say 20% of the space he's using for SD adverts available to outside sponsors?

 

Of absolutely zero consequence. We already have £50m in the bank, he is worth £5bn, the TV deal is pouring more into the coffers every year, a bit of outside advertising is worthless. Besides which, we have Wonga on the shirt for chrissakes and a reputation that's on the floor, how much money is a few billboards going to make.

This is Sports Direct, sponsored by NUFC, not the other way around. The club gives him an audience of 1bn more or less daily. And the company who give him this advertising pays him for the privilege. It's so utterly fcked. I bet Mike Ashley waked up every morning and just laughs solidly for half an hour.

 

He doesnt want an outside sponsor as it would detract from the pervasive Sports Direct message he is trying to put out but he should be made to pay for the privilege of doing this and he should have to compete with other companies who want the space. We must have the laziest marketing department in the Premier League. This argument that it offsets not paying interest on his loan just blurs the line that should exist between NUFC/MASH Holdings and Sports Direct.

 

No argument what he SHOULD do. He SHOULD ensure Newcastle United are an exciting, progressive football club, but sadly for us his brand, his company, is the epitome of low-rent, value-for-money garbage.

I've argued this in the past - Liverpool FC's owner(s) are also the owners of a sports brand (appreciate SD is not quite a sports brand, but bear with me). They own Warrior and so unashamedly use Warrior to make Liverpool's kit, presumably at a discount. There are subsequent benefits to LFC advertising the Warrior brand, but the difference is Warrior also advertise the LFC brand. Plus they invest, heavily and continuously, on players, on promoting an attacking style of football and ambition to compete using funds that both Liverpool generate and that the owner CHOOSES TO INVEST.

I don't need to write what Ashley does with us/SD. Quite why he had to pick NUFC of all the fcking clubs is beyond me.

The worst thing about Ashley is employing sycophantic nobodies and expecting them to have the skills necessary. He's so utterly, utterly clueless when it comes to running a football club its' scary. When Dubai bought Man City, they IMMEDIATELY looked around and said "who's got a massive, impressive CV and understands what it takes to manage a high-level football club". I don't expect Ashley to pay for the best, but to promote the tea boy and Alan Carr's dad to run the entire fcking club is bamboozling to say the least. We have no fcking FD, no staff, not enough players. But what's Charnley going to do? Ring Ashley up and say "you do know I'm woefully under-qualified and incompetent, Mike..."? Is he fck. He's going to milk his job for all its' worth, spin stories to his boss about how good he and Alan's dad are, pi$$ about dilly-dallying in the real world of football and hope to fck he can muddle his way through to a mid-table finish. He knows his boss is so clueless he's not going to be sacked anytime soon and it's entirely plausible that relegation would see McClaren go before Charnley or Carr.

I only wish Pardew had more interest and backbone to tell it like it is. It seems utterly clear that he was completely hamstrung by the clubs' policy but even today doesn't have either the will or the cojones to tell the press or Mr. Ashley what's happening. It seems clear to me that Charnley is an utter buffoon. I may eat my words come August, but I'd bet considerable sums of money we'll still be short staffed and weak in the squad. I am not convined McClaren is going to suck it all up though, perhaps that might be the only good to come of this prospective nightmare.

 

When he does finally decide to sell, he will plan in advance.
The year before he will remove SD ads and sell all the space, this will improve revenue and thereby the bottom line significantly.
This will boost the projected value of the club which means he maximises profits.
The true value of the advertising is still an unknown quantity.
Estimates say that if he classes the free ads as an offset for no interest being charged on the loan then the value is £2-3m I think I read.
I'd say the real value now is nearer £15m.
As the global audience grows with the new TV deals that figure will only rise.
Companies are normally valued at 2-3 times annual sales/turnover on sale/acquisition so say in 3 years that figure is £25m a year x 3 and we suddenly have £75m added to the purchase price.
I expect him to sell up within 2 years of the game taking off big time in the US.

 

Pards will have a clause in his severance arrangement to prevent him or the club bad mouthing each other for a specified period of time.