Sports Direct: Only using ‘unused’ advertising space.Inspired by members of the NUFC board saying Sports Direct only takes up unused advertising space at SJP, as well as Newcastle United’s lousy commercial revenue figures, I decided to do a little number crunching and research.
Referring to figures from other clubs using Deloitte’s “Annual Review of Football Finance” and all the other sources I could find, as well as looking at other revenue streams for the club using the club’s last published accounts. I estimate that as per Newcastle United’s last published accounts (for the 2011-12 season), the club is only getting just over half the commercial revenue it should be.
According to my research, if Newcastle United were an average Premier League club with around 27% of the club’s revenue coming from commercial sources such as shirt sales and sponsorship, we should be getting around £25 million per season in total when we are actually only getting only a paltry £13.8 million. Having written that, with the third highest average attendances in the Premier League, some might say that these figures could be skewed somewhat as Newcastle United might be expected to get a higher percentage than normal from matchday revenue. However, they were exactly the same as the average for the whole Premier League, around £21.5 million of £93.3 million, or 23% of total turnover. (more…)
Mike Ashley: Laughing all the way to the bank again.With the news that Mike Ashley’s downmarket sports chain, Sports Direct, is about to be included in the reshuffled FTSE 100 Index of the top 100 UK companies, I took a peek at their latest figures, as I do from time to time.
As has been the norm with Sports Direct for quite some time now, the figures were obscene, with profits rising a whopping 23.2% to £260.1 million.
What caught my eye however was the current Sports Direct share price standing at well over £7 and rising three or four times just as I was reading it over the share ticker. This means that Ashley’s current 64% holding in Sports Direct International is now worth over £2.75 billion, and this is after Ashley cashed in some 4% of his shares for over £100 million back in February.
To put this in perspective in terms of Newcastle United and it’s importance in the scheme of things to Ashley, that is well over 10 times the value of what Ashley has invested in the club, around £262 million. This includes a debt of around £129 million to Ashley, most of which is repayable on demand with the rest secured on future broadcasting revenue. (more…)
The fans are revolting, but Will they be effective this time?Newcastle United fans are revolting!
However, writing as someone who used to be an protester and fundraiser myself in the past, not over Newcastle United but over causes such as civil liberties, racism and the like, from what I have read and seen of Newcastle United fans’ planned protests so far, the chances of success don’t seem to be that great at all. This isn’t because the protestors don’t have a case, more that the protagonists don’t seem to be protesters, quite simply, they don’t know how to do it properly. They’re more like brickies and plumbers who are blundering around in a field they don’t understand, a bit like Mike Ashley trying to run a large Premier League football club really!
Please don’t misunderstand, this is not to be unecessarily disparaging at all, it’s just an appeal to realism, a plea for the protestors to consult with people who know what they are doing this time before they go blundering in once again with their size 10s and misspelled bedsheets. In a David and Goliath struggle, you don’t just need all the help you can get, you need the right help to avoid falling at the first few hurdles. (more…)
Pardew: Knock-on effect of French success.In the second installment of his exclusive interview with Sports Direct News (the first is here), Newcastle United’s manager, Alan Pardew, revealed that French players are attracted to Newcastle United because both they and their agents have seen how successful other French players have become after joining the club.
With players such as Hatem Ben Arfa, Yohan Cabaye, Mathieu Debuchy, Mapou Yanga Mbiwa and more abandoning French Championship winning sides such as Marseilles, Lille and Montpellier for a chance to come 16th in the Premiership, Pardew described the “knock-on effect” this has on other French players who want a taste of the same success.
He explained:“Sometimes there is a knock-on effect when you get good quality in a certain place.
“It might be Germany but for us it’s France and there has been this knock-on effect.
“When French players do well here other French players then assume it will be an easier course for them to come in to the Premier League.(more…)
Pardew – Fist pumping his way back to the top ten?Speaking exclusively to Sports Direct News, Alan Pardew saluted Mike Ashley’s “bravery” in saving Newcastle United from the Championship, but also suggested that he may not be able to do it a second time should the club be relegated again.
He also revealed that without the handicap of European football in the coming season, though his first aim will be to avoid relegation, he will be ambitious and go for a top ten finish or possibly even higher. Though how he could aim higher than the top ten, he didn’t explain.
“I think realistically we should look to finish in the top ten and hopefully get ourselves in a position where we can attack higher than that” said the Silver Supremo, adding:
“When it gets to February we’ll have a clearer indication of where we’re going to be.”
Pardew then spoke of how it is relief from the pressures of European football, along with good players which has enabled him to aim so high after last season’s disappointing 16th: (more…)
