Mike Ashley’s Sports Direct Profits Up 10 Times


Sports and leisure fashion chain Sports Direct, which is owned by Newcastle owner Mike Ashley, has reported a strong set of financials for the year just ended.

Mike Ashley – Sports Direct owner – huge increase in profits

The reported profit before tax has risen by more than 1000% – not too bad at all – and that’s a 10 times rise in profits.

The company’s re-branded their shop fronts to Sportsdirect.com, which is said to have driven huge web traffic business.

Revenues were up by around 11% after the company provided depth and breadth in their product line, at low and very competitive prices.

The company is 71% owned by Newcastle United FC owner Mike Ashley, and is Britain’s biggest sports goods retailer.

Pretax profit was £102.1M in the financial year to April 25th, and met analysts’ forecasts.

Sports Direct said revenue increased by 6.2% to £1.45B, while gross margin fell 20 basis points to 40.6% – well that’s what you get when you offer the lowest prices.

The key in this business strategy is moving a lot of product – and that seems to have been what Sports Direct were able to do over the last year.

Wonder if Mike has a few million available for new Newcastle players?

Comments welcome.

Written from London, England.



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57 comments so far

  • Mac

    Jul 22, 2010 at 8:55 AM

    Comment #1

    Can’t see it, but get ready for all the Ashley haters on here today..

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  • mylestoon

    Jul 22, 2010 at 9:09 AM

    Comment #2

    Clever business strategy, the mans head is screwed on. Was never a big fan of Ashley but if he can get us a few hungry players in, like Hooper, Gosling, Andrew Driver, etc then a job is well done. He saved us from administration by pumping his money in the club. Granted he did help push us into the situation we were in, but he suffered as well. So well played to the man and well played for running the club properly.

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  • bro56

    Jul 22, 2010 at 9:09 AM

    Comment #3

    good news for Mike, lets hope he hands a few pennies to CH… apparently Titus is available…..

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  • bro56

    Jul 22, 2010 at 9:10 AM

    Comment #4

    mylestoon.. well said!, he seems to be turning things around at Newcastle.. fingers crossed..

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  • JSYproject

    Jul 22, 2010 at 9:10 AM

    Comment #5

    ayeeee its gonna be rife of it mac, what these narrow minded fools dont seem to understand is hes trying to make the club self suficient. so we dont need to rely on someone elses money for players, so we dont have to pile loan after loan onto the club.. and so that when fifas regulations about club finances come in to play we will be ready for it and wont face any sanctions.

    but guarenteed to hear it all today, ericles, sirjasontoon, etc.. this is your topic gents hahaa

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  • Stardust

    Jul 22, 2010 at 9:11 AM

    Comment #6

    Ashley started running us more efficiently when he lost 1 billion of his wealth in the crash.

    Quite natural and to be expected really, the fans ingored this, rioted on KK leaving and eroded any good will or sense of wanting some fun that Ashley ever held.

    Now as his wealth rebounds they will look to him and say “money money money” he has every right to stick two fingers up at them and say the club needs to feed itself now – 300mn is enough.

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  • mylestoon

    Jul 22, 2010 at 9:17 AM

    Comment #7

    You make mistakes, you learn from them, you move on. I can remember when people were saying that Ashey is trying to run the club into the ground???? what a good investment, he will go down with the sinking ship. I’m sorry but any man thats had a billion in his account must have brains on them. Ashleys had his honeymoon crashed down to earth and now hes running the club better for it. A lot of respect from me for sticking around and trying to show his respect for the fans and do whats best for the club. I’m over it, so the “haters” should be to.

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  • Stardust

    Jul 22, 2010 at 9:20 AM

    Comment #8

    Good post Myles, I was never against him – not easy to do anything with NUFC fans post the FFS regime.

    I think relegation last year could have been the best thing to have happened to us, a realignment of expectations, we are now an honest club looking for financial value and core values in the players. Hughton is owed a debt of gratitude that we can not repay. The man has brought something back to the club money cant buy – dignity.

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  • sirjasontoon

    Jul 22, 2010 at 9:28 AM

    Comment #9

    Well done Mike.
    You the Man.

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  • JSYproject

    Jul 22, 2010 at 9:29 AM

    Comment #10

    I think relegation last year could have been the best thing to have happened to us, a realignment of expectations, we are now an honest club looking for financial value and core values in the players. Hughton is owed a debt of gratitude that we can not repay. The man has brought something back to the club money cant buy – dignity.

    love it!

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  • JSYproject

    Jul 22, 2010 at 9:30 AM

    Comment #11

    sirjasontoon // Jul 22, 2010 at 9:28 AM

    Well done Mike.
    You the Man.

    hahahahahaha love that even more hahahaha

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  • mylestoon

    Jul 22, 2010 at 9:30 AM

    Comment #12

    Stardust- good point about hughton, no one wanted to play for kinnear, players wanted to play for shearer, but by the time he took over, the players had nothing left to give. Were in a better position now than 2 years ago. We have a group of players that want to play for the shirt and Hughton, not the big wallets. Its fair to say that a lot of the players with the massive wages only stick around for the money, but after last year I think the squad we have proved they want to work together, even if it means grinding a 1-0 victory or a draw.

    Hughton has a big task this year and he did have the best squad in the championship with this current team. But he also gave the team life we didn’t even see in the premiership with signings like routledge, who has demon pace, a bit of skill and is hungry. Unlike players like geremi that were on the back burner for near enough 3 years.

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  • Mr Books

    Jul 22, 2010 at 10:35 AM

    Comment #13

    One of the things you really need to have in finance is appropriate perspective.
    Before you start whooping about 1000% increase in profit think – how is that possible?
    Anyone remember the headlines a year ago – 90% decrease in profit?

    So todays real teaser – what is 1000% of 90% of x?

    A little helper
    SD profit before tax for the last 3 years
    2008 118.9 Million
    2009 10.7 Million
    2010 119.5 Million

    So the 2 year growth is 0.5%, not quite so impressive.

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  • Davies

    Jul 22, 2010 at 10:37 AM

    Comment #14

    Glad to see that the whole anti-Ashley thing is starting to die out, though there will always be people who cannot see past their own seething rage at a man who just wouldn’t run the club HE owns the way THEY want him to.

    I think in Ashley and Hughton we have something that we haven’t had in a long time. Level headed expectation and stability. I wait for Ericles to tell me just how blind, stupid and naive I’m being. Clearly, his opinion is better and more important than mine.

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  • Mr Books

    Jul 22, 2010 at 10:37 AM

    Comment #15

    Sorry that should be 1000% of 90% off x

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  • Davies

    Jul 22, 2010 at 10:41 AM

    Comment #16

    On an unrelated note, has anyone seen that we’ve been linked with Hatem Ben Arfa?

    Perhaps an outlet for MA’s extra few quid?

    Probably no truth in it, but it’d be nice.

    http://www.imscouting.com/global-news-article/German-side-challenge-Newcastle-United-for-Hatem-Ben-Arfa/8932/

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  • coxonfamily

    Jul 22, 2010 at 10:44 AM

    Comment #17

    I’ve got to say im always reluctantly trying to accept that mike ashley is our owner, just for the sake of the team but of course his profits their are up, but newcastle’s official shop profits will be down, he shows his true intentions when he puts newcastle shirts at sportsdirect £35 but then at the official shop £45… thats what we get for being loyal fans. Like I said, he shows his true intentions but most people choose to forgive and forget which is their choice, but he’s burned too many bridges for me.

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  • hitman

    Jul 22, 2010 at 10:50 AM

    Comment #18

    couldnt give a toss how much his tatty shops make.

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  • G

    Jul 22, 2010 at 10:55 AM

    Comment #19

    I don’t think it’s a case of forgive and forget coxonfamily, I think it’s more a case of ‘better the devil you know’. I do not like MA, however, I have accepted that the model of the club he is building, is a long term beneficial model, therfore good for the club. MA’s mistakes in the past are the past, whilst not forgiving, we certainly hope he has learned.

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  • Timmers

    Jul 22, 2010 at 10:58 AM

    Comment #20

    http://www.skysports.com/story/0,19528,12876_6273963,00.html
    Interesting and in some parts re-assuring lol

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  • Milzzy Rascal

    Jul 22, 2010 at 11:10 AM

    Comment #21

    Gozza finally confirmed as a Newcastle player!

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  • coxonfamily

    Jul 22, 2010 at 11:11 AM

    Comment #22

    G, but what I can’t understand is why people havent realised that he hasnt learned from the past, he is undercutting the club for the sake of his precious sports direct. It doesnt seem long-term beneficial to me that sports direct is getting more profits, the day i hear newcastle united are getting more profits then i might be happier.

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  • Mr Books

    Jul 22, 2010 at 11:15 AM

    Comment #23

    coxonfamily – that’s business I’m afraid.
    Sports direct can spread the operating costs of the business over tens of millions of items. The club shop over a couple of hundred thousand.

    If you want an incentive to spend the extra tenner though, try to keep these in mind.

    If you buy from SD, the money will go into MA’s pocket and you will be relient on his generosity to see it supporting the club.
    If you buy from the club, the money goes into the clubs bank account, will contribute towards the wages of the front line staff working for the club and to get into MA’s pocket will reduce the debt to him and make the club more attractive to a potentially different owner.

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  • slazberger

    Jul 22, 2010 at 11:22 AM

    Comment #24

    the success of sports direct should be irrelivant to nufc, apart from MA being in a good mood.

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  • Shearer

    Jul 22, 2010 at 11:24 AM

    Comment #25
  • lewman

    Jul 22, 2010 at 11:38 AM

    Comment #26

    have you seen the mascot packages for the psv game. £350 with all money going to the bobby robson foundation.

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  • Stevo

    Jul 22, 2010 at 11:49 AM

    Comment #27

    Hey Ed, I’m not sure if you’re aware but the ad’s down the bottom are getting a bit dodgy. Just had a porn ad?! Not good for the bairns that probably get on here!

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  • Stevo

    Jul 22, 2010 at 11:51 AM

    Comment #28

    Great news about Gosling. I’m uber chuffed with the transfer policy the club have at the moment!

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  • Mr Books

    Jul 22, 2010 at 12:01 PM

    Comment #29

    Stevo – It is good news about Gosling, only issue being that he wont be fit until November/December.

    BTW mate – the ads that google shows are related to the search history for the user on the computer you are logged into. 🙂 We know what else you’ve been doing on the internet now LOL

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  • G-Man

    Jul 22, 2010 at 12:05 PM

    Comment #30

    Sky News : C Hughton on Hatem-Ben-aArfa “I read about Ben Arfa. He is a cracking player and it’s nice to see us linked with him, but there has been absolutely no contact there whatsoever.” Nice to see that he at least know’s what a good player is, was starting to wonder myself. Don’t get me wrong, Perch so-so, Gosling very good, but steel & energy are not enough for the premiership, we need some flair players like Arfa……

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  • JSYproject

    Jul 22, 2010 at 12:05 PM

    Comment #31

    lewman that looks awesome, makes me wish i had kids… or was shorter

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  • Stevo

    Jul 22, 2010 at 12:09 PM

    Comment #32

    Mr Books – yeah that’s true but just glad we’ve captured a great up and coming youth player!

    Re: The porn ad. LOL! Not sure what you’re saying is correct. At home yeah sure but this is a work computer and that’s a big NO NO!

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  • Sav

    Jul 22, 2010 at 12:09 PM

    Comment #33

    We are where we are and the club is being run accordingly.
    The reality that where we are is a relelgated team who has managed to scramble out of the Championship with a lessened squad to the one which went down and are now scratting about looking for bargains, cast-offs and loans from better-run clubs is down to Ashley.

    Its not cause for a love-in.

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  • dave 1961

    Jul 22, 2010 at 12:16 PM

    Comment #34

    if it was not for Ashley we might be where Portsmouth are today so we have to take the positives out of what we have, & I still think he will deliver a trophy as he’s a winner and never going to accept anything less whatever it costs him, he has stated he will invest 20-30 million a year, he’s the only owner that has done this, the last lot milked the club dry, we need to forget the past and look to the future with the new rules on debt we could be one of a few clubs that don’t have any, then we are better placed to move forward.

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  • coxonfamily

    Jul 22, 2010 at 12:23 PM

    Comment #35

    it is also cause of mike ashley we might still end up where portsmouth are today if he takes all his profits with him when he leaves 😉

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  • MacToon

    Jul 22, 2010 at 12:36 PM

    Comment #36

    what these narrow minded fools DO know is he’s a lying twat!

    £20-30m investment? where?

    Great news on Gosling, finally official.

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  • G

    Jul 22, 2010 at 12:46 PM

    Comment #37

    Stevo, in order to get rid of the dodgy ad’s try downloading Firefox as a browser, and go to the ad-ons page and install a feature called Ad-Block. Problem solved.

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  • Angryman the Angry fan

    Jul 22, 2010 at 12:50 PM

    Comment #38

    Dave 1961?? Where did he see he will invest 20 -30 Million a year??

    At the end of the day, Mr Mike Cashley has Mis Managed NUFC….no matter how you tart it up!! The Keegan debacle, the relegation, the selection of Managment and staff…..The buck stops woth the fat rich man!! Anyone who says it doesnt really do want their heads seeing too.
    At the end of the day the bloke talks a good talk and we can all say the financial plan for the club is blah blah blah…so we break even blah blah blah…..
    IT IS YOUR JOB Mr CASHLEY to ensure that the club at least breaks even, that the staff you appoint makes this happen and turns the club into a Footballing (as well as business) success. Its okay having a 5 year PLAN…where does it leave the 5 year PLAN if the lack of investment in quality players for the team causes another relegation from the premier league?
    As in the past if you dont appoint the right people, you have FAILED
    If you dont invest to give us a decent team you have FAILED which leads to the simple fact that if we get relegated YOU HAVE FAILED!!

    So the CASHLEY BRIGADE with the rose tinted glasses. The bloke has done nothing since he took over but get us relegated with his poor decision making at our club…..YES we have been promoted under his ownership, but we have also been relegated under his ownership and until MAY 2011…….the bloke at the top has proven Nowt but 90% failure v 10% Success!!!!!!!!!

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  • Angryman the Angry fan

    Jul 22, 2010 at 12:54 PM

    Comment #39

    BTW I will be the first to eat a hyouge slice of Humble pie if his Management skills take us back to where we belong!! at the top end of the league within his five year vsionary arsenal type period.

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  • coxonfamily

    Jul 22, 2010 at 12:57 PM

    Comment #40

    along the lines of this 5 year plan, didnt he say we had a 5 year plan when he took over? how did the original one end up?

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