Mike Ashley's Financial Success?

Interesting article on how NUFC under Ashley has done in financial terms with nice graphs to make it simple. Perhaps overly simplistic and doesn't take account of what Ashley has indirectly got out of it, eg free advertising but thought it was interesting enough to share.

http://nufc-ashlies.blogspot.co.uk/2014/02/the-myth-of-mike-ashleys-financial.html

 

I never bought the myth that he 'saved' us financially from day one. I'm not a financial expert, but from what I understand, Ashley on taking over the club tried to aggressively re-negotiate the interest rate charge on the mortgage with HSBC. HSBC of course told him to do one and called the mortgage in and Ashley had to pay this off to protect his investment. This is the so-called loan hanging over the clubs head. From reading Up There: North East Football Boom and Bust, it suggests the mortgage would have been comfortably paid off by 2016. The overspending, whilst worrying was never going to see us doing a Leeds or Portsmouth [despite what a number of fans have been led to believe]. Shepherd delayed payment of transfer fees, that is undeniable. Again, from what I understand [and shoot me down if I am wrong, with a source to back it up], we would comfortably have met all future debts provided that we remained in the Premier League.

The argument seems to be then that Ashley has created this 'enormous' debt, that the club are still paying this off. He is no saviour. In return for his loan, he gets free advertising, thereby reducing our sponsor income. So rather than this genius businessman, we have a chancer in charge who is stifling any potential growth. Yes, we are the 19th richest club in terms of revenue, but the article seems to suggest that the Sky TV money is largely responsible; not Mike Ashley.

 

This is from last year though Trev, why has it taken you a year to bring this to our attention?

#senile

 

Things like matchday revenue and commercial revenue were hit pretty hard by the economic depression - lots of empty exec boxes and the club freezing or even reducing ticket prices, for example. There is some commercial income lost from the pitchside advertising given over to SD but I'm not sure that would bring in a huge amount to be honest. TV money has certainly made us as wealthy a club as we are, as it has for most Premier League clubs.

The £129m debt is genuine but it isn't being paid off. What will the club do with all the money it has stockpiled in the bank though? Probably save it up and pay a huge chunk of that loan off in one go. I don't believe the club would have paid the old mortgage off as we were overspending and running at a loss so the debt would have most likely increased.

I never had a problem with running the club sensibly and getting back on a sound financial footing. It is just since the last couple of years when we got ourselves into profit Ashley has not used it to take the club forward and that I have a problem with. It is very clear that success on the pitch and fulfilling the club's potential is not important to him.

 

Okay,it's true. I'm Ashley's right hand man. I've been trying to bury this information but, damn it, I have scruples and morals. I just couldn't hide this information any longer. True Mike said I was bitter because I didn't share in any bonus payments but that's not the reason I've posted this article. Anyway Mike said I was entitled to a share of the bonus money and he's gone back on his word. Yes, I said I would go up and be on the Rangers board but he knows Derek doesn't like me and wouldn't let me be Manager when McCoist left. So it wasn't my fault when I changed my mind.

I was supposed to be Head Coach when lapdog Pards left but no Mr "clever clogs" Ashley changed his mind and said Carvs could be even though he knows nothing about coaching. Has he looked at the Prediction League? No. I've managed to maintain mid table mediocrity all season but does Ashley give me any credit. No sirree. Apparently, my team has the capability of dominating that league for years to come.

So I'm not bitter nor am I a whistle blower, it's just I felt the need to put the Toon Army ahead of my own interests as I'm just that kind of guy.

 

I don't trust Trev.

 

Anyone interested in the figures should check out The Swiss Rambler, who has done two excellent analyses of the club's financial position pre and post Ashley.

For those who want to be spared ploughing through the figures, the club was leaking money like a sieve and was charged 15% on it's last loan prior to take over. It is now turning a profit, this year probably a largish one.

 

this gets me very annoyed ,newcastle united are not making a profit, mike ashley is making/getting it,the horrible greedy ****ing bastard is even taking 75% any profit rangers make commercialy he is an absolute lowlife i hope the **** gets so fat he explodes

 

To balance this I think we need to see the company's cash position year on year or at least the current assets. Also wasn't half the problem that when Ashley took over he didn't do due diligence and the club had off balance sheet debts i.e. not in the figures and Ashley had to take these on in the form of loans.

 

My cousin used to do the books for NUFC as an employee of Arthur Andersen and even he said we were close to the brink.
He's a Mackem too and pissed off it didn't happen.

 

I always find it strange people think Ashley is the devil incarnate but then go quite happily sucking on the cock of Freddie Sheppherd.

The aim of MA for NUFC was self sufficiency - once Ashley has been paid off I would like to think that is exactly where we are financially. Following our stint inthe Championship I much prefer to see unknowns or youngsters coming through than big name signings (obviously once in a blue moon it would be nice though)

 

Only Trev could get a couple of days out of year old news.

 

Thanks, that's very kind of you to say so.

I don't have a problem with Ashley making money out of the Club. He essentially saved the Club from doing a Leeds et al. I also don't have a problem with him skimming off some of the profits to repay his "loan". I also don't have a problem with not buying expensive players. Cheaper players can be a better buy than the expensive ones, e.g. Perez to Owen.

I do have a problem with him getting free advertising for another Company, Sports Direct. I do have a problem with his inadequate investment on players when the Club is making a profit. And I do have a problem with the perceived lack of ambition to get into Europe and succeed in the Cups.

There is no simple solution. Until someone comes along to pay Ashley the amount he wants for the Club he is stopping. Ashley appears to be of the mold where he loves making money. Why should someone of that or indeed any other ilk, i.e Ashley, sell a Club where he is going to be able to make £40-50M per year with minimal outlay and relatively minimal risk? Until someone can convince me I'm of the view he's stopping.

I then have to decide whether I continue supporting MY team under those circumstances or not. Well. the answer for me is that it is MY team, it may not be my Club but it is still MY team. I was here before Ashley and God willing I will be here after Ashley. I'm not going any where. I will continue to go to as many games as I can and will continue to support MY team. Some may accuse me of being part of the problem in going but given the current Sky monies Ashley will make a profit even if the ground is one quarter full. He doesn't care if the ground is full or not so long as he can continue to make money and he will until the Sky bubble bursts.

So everyone should hope that sooner rather than later that the Sky bubble bursts as that is going to be when Ashley will sell so as not to lose money.

 

the aim of ma for NUFC was self sufficiency ha ha ha ha ha ha ha ha ha ha ha ha ha