The Labour Government’s proposed plans for fans of English clubs to own 25% of their clubs is interesting, but hardly practical.
Mike Ashley – NUST have no chance as long as Mike owns Newcastle
And it doesn’t even seem to be possible, because why would owners want to sell 25% of their club to the fans?
The NUST (Newcastle United Supporters Trust) was formed in 2008 after Kevin Keegan had been fired (or left the club – whatever it really was) and they have had pledges (to buy the Newcastle club) of around £50M, we understand.
But that means in reality that they’ll get about half of that amount, by their own admission.
Once Newcastle are promoted they’ll be worth at least £200M, and that’s only one reason why we think owner Mike Ashley should give Chris Hughton a big bonus for saving him over £100M.
It could well be just an election ploy by the Labour party, but there’s no doubt at all that English clubs just cannot keep overspending and getting themselves into such financial debt, as we have witnessed at Portsmouth, as just one example.
Manchester United owe £716M right now, but that will not stop them spending big time in the transfer market this summer, with money they don’t have.
It’s just completely daft the way some of these clubs are being financilly managed, and we learned a couple of days ago that many PL clubs still have wages that are in excees of 70% of revenues – sheer madness.
If Hull are relegated this year they will also be in financial peril, and Iain Dowie has a big job to do through the end of this season.
Financial restraint is one reason we are pleased that Ashley has put some brakes on spending at the Newcastle club.
We like the plans in place to build the Youth Policy and to significantly fortify the scouting network, so the club can start making top players of the future, and buying players before they have fully developed their potential.
That will hopefully mean the club will not have to spend ridiculous amounts in the transfer market, like we’ve done in the past, for scant return.
It seems that Mike has had to put over £30M into the club’s coffers (interest free loan as we understand), so we can survive on a day to day basis, but it looks like it will all pay off big time with promotion a reality soon.
We have seen the NUST articles recently about how good it would be if the Labour idea gets support and indeed goes ahead , but as long as Mike Ashley is owner of the Newcastle club, the NUST has absolutely no chance in owning any part of the Newcastle club.
But maybe they are looking to the future and a new owner, but we’re not sure that will happen anytime soon.
Mike is unlikely to give the NUST any encouragement, given the way that organization has insulted the Newcastle owner and accused him of taking £7M a month out of the club, which was a huge mistatement and error made by the NUST.
Most of us didn’t particularly disagree with some of the insults hurled at Mike at the time, we have to admit, but that £7M a month had a lot of us puzzled, since the revenues this year at Newcastle are just £50M.
We were told to do the maths, and we did, and found the whole premise ridiculous and embarrassing for the NUST.
It’s not something that would make Mike want to spend the time of day with NUST either, which is why they can do nothing with Mike as the owner.
It proved some of them at NUST have no idea at all about how businesses are run financially, and certainly a portion of Newcastle fans have no place for the NUST at the club, according to some of the comments we have seen.
There are some areas that I don’t know too much about – but that doesn’t stop me writing about them. 😀
However in this area I do have some knowledge and credibility, since I built a $1B services business for IBM, before retiring back in 2004.
And from November through the end of January did some consulting in this area for a large global services company, which is the reason the blog closed down for a couple of months.
We are neutral to slightly positive on the NUST, but some of the things they have done and said in the past, like publishing their poll on Ashley that said 96% of Newcastle fans are against Ashley, does them no favors.
That’s 96% of those who took the poll of course, which was over 5,000, but you could also vote multiple times, and voters never saw what the current vote was. That’s an unusual poll to be sure.
It just loses them considerable credibility with common folks.
Maybe they will be able to do something in the future, but the NUST have a snowball’s chance in hell of doing anything at all, as long as Mike Ashley owns the club.