Ashley + stock market = newcastle united

Given the current stock market conditions, and the millions being wiped off sports direct, does anyone feel if this continues, Ashley may look for a quick sale in the near future? Or will he exploit us even more as a cash cow?

 

The club and his other assets are entirely separate, and he doesnt make a profit from the club anyway.

I read today that he just lost 200 million of personal wealth though

 

All that money tied up in shares was never actually 'real'. It would only ever become real if he'd have sold (and someone bought it) at that precise moment in time. Well that's how I'd console myself if I lost £200m.

 

Not really.

Look at this graph:

Sports Direct over 12 months

Even though it's dropped of late the value is far higher than 12 months ago and if you look back 18 months ago; the price of a share now if even higher.

Sports Direct have made strong profits this year so Ashley doesn't have to sell us at all if he doesn't want to.

Also, there are financial rules and legislation in place that stops money being taken out of NUFC at Ashleys whim.

Finally, we are not a cash cow for Mike as he's invested £250 million into the club. We are in fact more of a cash burden to him.

 

your maths bugs me....

 

I think all the money for Sports Direct and Newcastle United will be totally seperate, i think that will just be money he has put in to other business and stocks, so his own money in reality. But when stocks rise again he will get his money back.

 

still wouldn't mind being a tenner behind him

 

Do you give financial advice by any chance? If so, in view of the current volatility in the markets do you think I should sell my holdings and take a hit or sit tight and try to ride out the current economic storm? Any help you could give would be greatly appreciated although not necessarily financially rewarded. Thanks.

 

Play the long game and sit it out....

 

I don't do financial advice chap but part of my remit is to evaluate changes in the economy and ensure that processes are in place to cope with the changing environment.

The next few weeks are going to be key to this 'crisis' though so be ready to react quickly.

Don't forget though that shares over the long term will generally recover.

 

He can't take money directly out of the club but am I right in saying he can hike his wage whenever he wants?

If this is true he might just be raising his own wage whenever the club make a (player) sale

 

Thanks for that lads - I think I'll ride this one out and there may be plenty of bargains to be had in the current carnage in the markets!

Really put my mind at rest and now I can give my full attention to the Arsenal game.

 

dont mind a dabble in the markets myself, picked up a stock the other day (its a penny share, arounp 3.5p)...where abromvichs son has a 40% stake...called zoltav resources

 

Technically he can't just hike his wage as he pleases because this is a board decision and the board of Directors are in place to ensure that the business/club does everything it can to remain a viable business option.

Let's be honest. If Mike had simply taken that £250 million and invested it or just sat it in a high interest account; he'd have made far more in profit than by 'paying' himself extra via NUFC.

 

Can't he pay himself in dividends or is a football club different to a PLC or Limited Company?

 

Anyway.

Strangeness has occurred.

Went via Companies House about 18 months ago and looked at all the businesses where Mike is listed as a Director. There used to be 60+.

Checked again just now.

1 only.

 

Less than two weeks ago i was reading on how he had made great profits, staff were set for bonuses, he bought clothing outlet Cruise..... Doesnt seem to be doing too bad so i dont see how thats gone from that to him having problems now.

 

But then you'd go through life knowing you were inferior to the pie-man...

 

Ashley may not be allowed to take money directly out of the club, but he has undoubtedly raised the profile of Sports Direct by his ownership of NUFC and has therefore profited in that sense.

He's no philanthropist. That's for sure.

 

If he'd spent £250 million purely on marketing for Sports Direct over the same time period I bet the profile of Sports Direct would be far higher.