Innocent?Mike Ashley could find himself doing a spell of porridge if the investigations by the Serious Fraud Office turn up anything untoward.
Acting on a tip-off from JJB Sports, the Office of Fair Trading and the Serious Fraud Office raided Ashley’s Sports Direct offices following allegations of fraud and price-fixing.
JJB’s own offices were raided too but they’ve allegedly been offered immunity from prosecution in return for their cooperation. JJB reported Sports Direct to the OFT in January a few days after it suspended Chris Ronnie, its CEO and a former friend and employee of Mike Ashley.
It all sounds a bit tit-for-tat because in 2000 and 2001 it was Ashley pointing the finger at JJB Sports, landing the company a £6.7m fine for its price-fixing activities, for which I assume they were less than grateful. However, since then price-fixing has been declared a criminal activity and is punishable by up to 5 years in the clink and an unlimited fine so, if guilty, Ashley is likely to face a much harsher penalty than a mere £6.7m fine. (more…)
40,000 crowds help MoatThe 40,000 crowds we’ve been getting at home games could help Barry Moat’s attempts to take over Newcastle United Football Club.
According to a recent article in The Journal, Moat’s original business plan was based on the Toon attracting 25,000 for home games. I have no idea how The Journal knows that but if we assume it’s true for a minute then the 15,000 additional fans we’ve been attracting could provide leverage for Moat in his negotiations with Barclays about the overdraft.
To be honest, I still wonder what the actual cost of the club will be to Moat or any other potential buyer. We know Ashley’s asking £100m and it has been suggested that the club has drawn £20m on it’s £40m overdraft facility but it’s still not clear to me what happens about the £100m Ashley loaned to the club to clear the debts. (more…)
A promotion race would do us the world of goodWhile fans are divided on their thoughts away from the pitch, it would be hard to argue that you’re not happy with the results on it. The football is hardly of the ‘total’ variety but in a results game, we’re grinding out the points where it counts and really, for now, that’s what matters most. Because it gives us something to get a bit carried away about and something to focus on. Not least it restores a bit of pride.
The last time we were relegated to this division, I was really just starting to watch regularly and for those old enough to reminisce prior to the ’90s, the parrallels between then and now will not be lost on you. The 88/89 season saw lose us our top flight status while discord was rife on the terracing and a Newcastle board struggled incompetently to run our beloved football club.
However, a summer and some inspired Jim Smith signings later, the sun was out, Mick Quinn and Mark McGhee led the division a merry dance and before you know it we’re sitting in a healthy league position behind the top two and the future was looking slightly rosier. (more…)
Rob Lee - back in the dayOn what is an extremely slow news day so far, I managed to find an article in City AM about Rob Lee’s new role as an investment guru for sportsmen and other high net-worth individuals.
Lee does make a few comments about the current Toon situation though and when asked if Ashley was just throwing up a smokescreen by keeping Shearer hanging on for the manager’s job, he says:
“Yes, yes. If you put Alan Shearer in charge he is going to want to improve the club, and he is going to want money. I think the cheaper way is what [Ashley] is doing. By not appointing Alan he hasn’t got to spend any more money.”
I think many people have suspected as much anyway. Just after relegation Ashley described the appointment of Shearer as ‘the best decision he ever made’ but that was when he was planning to hold onto the club and rebuild it. Of course, now that he’s decided to sell it he won’t want to spend any more money on it than he has to.
I don’t necessarily mean that latter statement as a criticism. It stands to reason that if you’re selling something you’ll only spend what’s necessary to secure the sale and long-term investment is pointless. Although if you’re struggling to sell you might have to reconsider matters. (more…)
Thumbs-up for MoatThe Telegraph is claiming that talks between the club and Barry Moat are scheduled and that a deal could be agreed imminently. The key word in that sentence is ‘could‘ though, so let’s wait and see how it actually turns out.
The Telegraph’s claims do seem at odds with Keith Harris’s last statement on matters, which seemed to indicate that no deal was ‘imminent’ and that things would just bubble along until Chrismas or beyond.
Ashley did of course extend the deadline to give Moat more time to put the deal together and it seems to me that this deal is the only one with any chance at all of succeeding. But those chances seemed remote at best as Moat was reported to be struggling to meet Ashley’s £100m price and sort out the overdraft with Barclays.
However, let’s not forget that all this talk of Moat’s financial inadequacy has arisen from press speculation with very few quotes from anyone who might actually be in the know. Having said that, the current article in The Telegraph is the same in that respect. (more…)
