Ashley Can Hardly Expect Much Profit On Newcastle

Freddy Shepherd has come out and said that Mike Ashley should be asking a more realistic price for Newcastle United Football Club.

Freddy Shepherd – Mike asking far too much for club

Freddy said today:

“Mike Ashley says he wants to go, the fans want him out, but with the value of companies tumbling by the hour the price must be attractive to lure serious investors. Some of the figures that have been bandied about are laughable.”

“Serious investors know what he paid for the club and what he has put in – so he must accept there are no fast bucks to be made in this market.”

“One of our biggest banks HBOS had to take a massive hit and most companies and institutions have suffered too. Newcastle United is no different.”

“Mr. Ashley has to do what is best for the club. He must not try to make a profit out of a disaster.”

We agree with Freddy that it’s a really difficult time to get a good profit on Newcastle, so he should be able to accept £250M for the club and still make a little on the deal.

After all it has hardly been a long term investment and the club is in complete disarray, the worst it’s been for years. He paid around £134M for the club and put around £110M to lower the debts so he’s in for about £245M.

Among the Dubai investment companies interested in Newcastle were Zabeel Investments, who on Friday made an offer for Charlton Athletic.

A Dubai source told the Sunday Mirror today:

“I think Ashley could have sold Newcastle last week for £250m in two hours – I know of one definite buyer who would have done it then – but because of the global financial crisis, this week is looking different.”

That’s an interesting statement, if true, because Mike doesn’t have the time to wait around for a good offer, and If he thinks his popularity will improve through time, he should probably think again.

In our poll, with over 1280 votes in, 71% still want Mike to leave, so it’s hard to see things changing around too much, even though we think Joe Kinnear could well do a good job as interim manager.

Don’t be too greedy Mike, and please sell our club – as quickly as possible.
Comments welcome.

24 comments so far

  • Daniel

    Oct 12, 2008 at 10:29 AM

    Comment #1

    More unnamed sources putting MA in a bad light. He’s already beginning to turn his popularity round, a month or so ago 20% of readers wouldn’t have said they wouldn’t mind him staying on. People keep trying to read too much into blank lines – it’s all paper talk exactly how much he’s put in the club, and how much he’s asking.

  • ryan peacock

    Oct 12, 2008 at 10:32 AM

    Comment #2

    yes freddy you where a great chairman werent you!
    in january we should sign!

    pavel progrebynak from zenit!
    yuri zhirkov from cska moscow!
    per cijan skeljbred from rosenborg!

  • malaysia magpie

    Oct 12, 2008 at 10:33 AM

    Comment #3

    what sheperd said is true..the asking price from ashley is not worth to any bidders out there…unless the bidders wants to save newcastle by anything they will do…if ashley put newcastle united around 210 to 250m will be a reasonable price for me

  • malaysia magpie

    Oct 12, 2008 at 10:36 AM

    Comment #4

    i agree with ryan peacock…progrebnyak,zhirkov n sklejbred will be a triple good sighning

  • Steve

    Oct 12, 2008 at 10:39 AM

    Comment #5

    Ashley is a very clever business man who has recently took a paper loss of approx £1 billion on the stock markets. He knows he wont get the full asking price but he will sell imminently as the price will continue to drop. I am convinced we will be bought by a middle east consortium and Ashley will be out before Christmas

  • Mike D Wise

    Oct 12, 2008 at 10:39 AM

    Comment #6

    0 down, three to go

  • neeraj

    Oct 12, 2008 at 10:47 AM

    Comment #7

    hope he is not interested

  • Big Si

    Oct 12, 2008 at 11:15 AM

    Comment #8

    Ryan Peacock are you mad ? Which player would currently sign for us in our current state ? the answer = no-one. Why would a player sign for us when they don’t know who the owners will be and who the manager will be let alone the coaching staff and the overall philosophy of the club and where it’s heading! No players will be signed until the ownership issue is resolved.

  • ryan peacock

    Oct 12, 2008 at 11:21 AM

    Comment #9

    Big Si ! i obviously meant when we get taken over thats who we should look at you idiot!

  • skin d

    Oct 12, 2008 at 11:26 AM

    Comment #10

    ashley has been crap at the toon from day one,mike sell the club now and f##k off please.
    let someone run newcastle united who wants it to be sucessful,not the tin pot operation you were proposing.

  • Big Si

    Oct 12, 2008 at 11:26 AM

    Comment #11

    Your the idiot mate.

  • skin d

    Oct 12, 2008 at 11:35 AM

    Comment #12

    to coin a southern phrase,mike ashley is a two bob w####r and a guttersnipe.

  • Daniel

    Oct 12, 2008 at 11:42 AM

    Comment #13

    The question is, how can MA afford these players? During the credit crunch after losing millions on the stockmarket, and losing millions by Newcastle fans boycotting his stores, and losing revenue from the lower attendances/merchandise.

  • skin d

    Oct 12, 2008 at 12:12 PM

    Comment #14

    daniel,even if none of this turmoil had happend,whether kk was still at his post,even if there was no credit crunch!!.
    the fact is mike ashley was,is never ever going to put his hand in his pocket to invest in newcastle,s playing side.

  • jules

    Oct 12, 2008 at 12:58 PM

    Comment #15

    Little unfair to say MA was never going to pay for players for the club. We got in some good players during the summer in Guthrie, Jonas and Collo, the rest I am waiting to see on. We also let some players go who were not up to scratch for us. We are a more stable club financially now.
    We have tried repeatedly in the past buying players with high worth and they have flopped.
    Spurs spent a fortune and where are they now ?
    I just get the impression when the club is sold we will be reading the same old statements on these websites in one years time.
    NUFC and its fans have to get the stability we desperately need and we need some patience with whichever regime comes in.
    My opinion on MA is undecided but I really dont believe he is as bad as everyone has made him out to be and possibly we should have given him more time.
    If it was a different

  • skin d

    Oct 12, 2008 at 1:59 PM

    Comment #16

    mike ashley has spent virtually nothing on transfers it is a fact.
    so the players we let go were not up to scratch,they were not f###ing replaced either,people like emre,faye,milner etc.
    some people are talking out of their a##e,for example who would you rather have in central defence,cacapa or faye?,on that point alone i rest my case.
    players who have come in=
    guthrie done okay,on for the future to replace nicky butt.
    collicini,has struggled so far,jury,s is still out.
    guttierrez,works hard ,defends well ,not much attacking threat so far,only scored 4 goals in 96 games.
    gonzales,chuckle chuckle.
    xisco,ha ha ha got to be joking!!!.
    imo we are no better off than two year ago,in fact we are worse off.


    Oct 12, 2008 at 2:09 PM

    Comment #17


  • Paul

    Oct 12, 2008 at 2:14 PM

    Comment #18

    Most of the fans at Manchester United wanted the Glazers to leave, and most Liverpool supporters want Hicks and Gillet to sell up too. Where are they now?

  • Phil,Gosforth

    Oct 12, 2008 at 3:27 PM

    Comment #19

    ManUtd and Liverpool’s owners spend money on transfers to make the team successful.
    That’s the difference.
    I never expected MA to spend £30m on 1 player but I expected him to spend SOME money on SOMEONE ffs.Not unreasonable if the blokes a billionaire club owner.£20m investment out of his own pocket each year? What bollox.
    He has done nothing to make us a better football team.Debt or no debt,we have to have a a decent team or his investment/crowds/merchandise /prize money will tumble.

  • Thump

    Oct 12, 2008 at 4:48 PM

    Comment #20

    Phil hit the nail right on the head.

  • chuck

    Oct 12, 2008 at 6:02 PM

    Comment #21

    Is it unreasonable to expect MA to make a profit, would any of those urging him to sell at any price, to satisfy their need to see him humiliated, would they sell their homes or investments at a loss ?
    Every Premier league club sold recently has rendered a decent profit for those selling, what makes NUFC any different.

  • skin d

    Oct 12, 2008 at 7:30 PM

    Comment #22

    CHUCK OFF!!!!!

  • AndyT

    Oct 13, 2008 at 11:57 AM

    Comment #23

    Typical Freddy Shepherd
    A few weeks ago he was banging on about how his fantastic management meant that Ashley got a bargain when he bought the club, because the stadium alone was worth over 400 million which is why the debt was justified at the levels it was at.
    Before anyone starts I am not defending Mike Ashley, I’m just pointing out a few things that need to be considered sensibly.

    1) In the current global financial context a premiership club with its own high capacity stadium and very low debt levels is very attractive. The mess is in the board room and on the pitch, not in the balance sheet, any takeover would replace the board room and expect as a result to sort out matters on the pitch. For Freddy to compare it to HBOS and the lowering of value shows what a financial numpty he really is.

    2) The reason that the asking price should go down in the current market to enable a sale is not to do with the value of the club and its assets (even if Newcastle were relegated this season, the club would still be worth in the region of 250 million, 300 Million as a premiership club is about the right valuation of the club), it is to do with the current ability for potential buyers to raise the cash. This should be screaming out to you that if Ashley needs to bring the price down to sell, that the buyers are even less able to pump cash into it than he is! Trust me I want him to sell, but I’d like something better in return – not worse!

  • Will

    Oct 13, 2008 at 3:57 PM

    Comment #24

    good on freddy. mike is just being greedy. Why doesn’t he just buy pukka pies and go back to his hermit cave.


You must log in to post a comment.