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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Mike Ashley Has Newcastle In Excellent Financial Shape

10:59 am, Saturday, March 2nd, 2013 by Dr. Ed Harrison · 10 Comments

We had issued an article on Wednesday saying that we didn’t think any of the £100M Newcastle owner Mike Ashley had received from selling 25M of his Sports Direct shares for 400 pence a share last week, would ever see its way into Newcastle’s coffers.

Mike  Ashley 999

Mike Ashley – cashed in £ 100M of Sports Direct shares this week


It was probably a move by the Newcastle owner of cashing in the shares while they were high, following Sports Direct’s excellent financial figures they announced last week easily beating the estimates, and it’s also probably an attempt to diversify his investments away from having all his eggs in one basket – Sports Direct.

During the many interviews Alan Pardew had this week, he was asked about the £100M and whether he thought he’d see any of it – and this is what he said:

“No, I don’t think any of that will be coming my way.” “The windfall is earned from the success of his companies and what we have to do is earn our own success here on and off the pitch.”

Mike Ashley and Derek LLambias have vowed to plough any profits Newcastle get straight back into the club – and since we should be starting to make some profits when the figures for the last financial year through the end of last June are announced, Newcastle should continue to be in very good shape financially.

And you also have to remember that one reason clubs were willing to sell good players to Newcastle in January, half way through the season, was because we now pay our transfers up front in full and in cool cash – and we don’t pay for our players over a number of years via installments, as most top clubs do – as we used to do under Freddy Shepherd.

That helps keep the financial books in very good order, and we don’t owe millions of pounds on players who have been failures and already left the club – as was the case when Mike Ashley took over Newcastle in the summer of 2007.

Whether you love or hate Mike Ashley that makes very good business sense.

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Tags: Financials · Newcastle News · Other News




10 responses so far ↓

  • 1 Graeme // Mar 2, 2013 at 11:14 AM

    A very good article on Mike Ashley from a very highly respected city figure.

    http://tyneandwear.sky.com/news/article/58050/mike-ashley-youre-lucky-to-have-him-city-chiefs-verdict

  • 2 Spuggy // Mar 2, 2013 at 11:17 AM

    Since when have we preferred rational debate or the opinion of respected figures?

  • 3 stephen1971 // Mar 2, 2013 at 11:18 AM

    he,s not a self made billionaire for poor dealings,

  • 4 Big Pappa Cissé // Mar 2, 2013 at 11:19 AM

    I’ve got no problem having Ashley here provided he has learnt fron his mistakes and will be a bit more leniant with transfer funds. It is no coincidense that we have one of the best NUFC sides I have ever seen with him in charge. Sure he is not perfect and you can expect things like a stadium name change to slap you in the face every so often and we (the fans) have more direct contact from the Illuminati than big Mike himself.

    To sum up. Not perfect but it could be a hell of a lot worse. Maybe its a case of better the Devil you know

  • 5 Graeme // Mar 2, 2013 at 11:25 AM

    Spuggy, I know mate, but you never know what can happen on here. Enlightenment can be a wondrous thing lol

  • 6 dembademba // Mar 2, 2013 at 11:27 AM

    Ashley knows what he’s doing, end of. he’s committed to putting profits back into the club – unlike arsenal. yet the fact we are in such a strong financial position is due to his shrewd way of running the club – he f-ed up at the start but he learnt his lesson and we should be grateful for the way he is running things now. he is definitely a responsible owner.

    just another point about going after transfers this summer, i think only the very top level of players – who are clearly out of our reach – would not consider us, whereas very very good players would seriously consider us – partly due to the finances of the club, and partly because debuchy, sissoko, yanga, gouffran all joined us plus we have cabaye n ben arfa – top players!

    im naturally pessimistic when it comes to transfer targets ‘who really wants to come n play for us’ but actually i think a lot of good players would want to come to us. we’re in a strong position, thats mainly down to ashley.

    but also if graham carr had never of put the work in on big bad benny boy we would definitely not have cabaye and everyone else that followed…

    2 or 1 nil to us today, cisse to score first, get ya money down !

  • 7 ITUNDERASHELL // Mar 2, 2013 at 12:13 PM

    Next season we should be seriously challenging the top 4
    . This is due to the determination, effort, business plan and a very good team of astute operators running our club.
    We probably need 2 or 3 purples and then concentrate on the (forgotten the colour for the newt level) development players.
    We are very close to having a top club and l thank Ashley for his impressive performance, the man certainly learns very quickly from his mistakes.

  • 8 Cool Hand Luke // Mar 2, 2013 at 12:20 PM

    People have to remember that a football club is not a normal business and cannot be run as one, which i think opened Mikes eyes a little bit when he first took on the club. I have no problem with Mike at all, he has made mistakes yes, but hes learning from them.

  • 9 LocalZero // Mar 2, 2013 at 2:02 PM

    Seems to me that MA got chastened by the “cockney mafia out” brigade and spat the dummy wanting to sell the club. Pretty petulant (as borne out by the fact it was obviously a terrible time to sell and he couldn’t) of him but I actually quite like that he showed he’s an emotional guy. He’s always been an unconventional businessman but even the fact he bought a football club shows he’s not all about money, and that he’s got emotions and is a romantic (I’m still talking about football!).
    His PR is rubbish at times (and Llambias comes across as a bit of a bell*nd) but he’s been right more than wrong recently. I’d MUCH rather have him than some Abramovich or the Man City or Blackburn crew. I get satisfaction from us building a club for the long term as well as just from short term results.
    I think Ashley would appreciate some gratitude when he does the right things (just like training a dog!). Maybe a chant of “there’s only one fat controller” would be a good place to start, or is that still too early? I think we’ll be very sorry if he goes.

  • 10 veto // Mar 2, 2013 at 3:19 PM

    always gave him the benefit of the doubt, despite some silly mistakes, its not like we all dont make them .
    the keegangate saga was an embarrasment to my club and city tho the way the media helped stir everyone up into a frenzy against him was humiliating as a toon fan , i hope he’s forgiven us for that as there was some awful silly things said




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