This Is Why Mike Ashley Is Going Nowhere


There is a decent piece in the Newcastle Journal today, an interview with Newcastle fan David Wilkinson, who just happens to be a partner at Deloitte’s Newcastle office.

mike ashley smiling

Mike Ashley – would want to at least get his money back

David talks about what Newcastle United may be worth, and that football is not a normal business – you can say that again.

There are various ways to work out how much a business is worth, and usually it’s a multiple of earnings, but it’s very difficult to work out how much Newcastle is worth.

And even other companies, like Internet companies as a good example, are often sold for billions of pounds and yet they don’t have any earnings, and as one example Amazon,.com was valued at billions of pounds before they made their first profits.

Mike Ashley paid out about £134M for Newcastle in the summer of 2007, when he took Newcastle private, and since that time Mike has put another maybe £130M into the club, in the form of interest fee loans.

So being the businessman he is, Mike would need to recuperate at least the £264M he has already invested into the club – but there will not be many buyers at that price, and that’s a fact.

And we have seen that twice in the past, when Ashley tried to sell Newcastle.

First in September of 2008 after the Keegan – Wise earthquake, and we remember when Joe Kinnear came in as a caretaker manager in September, 2008 until Newcastle were sold, he said Newcastle would be sold the next week a number of times, but Newcastle were never sold.

And at the time Mike said he would sell, but that it was dependent on getting a decent offer for the club.

And then the next year after we were relegated, Ashley tried to unload the club, when the low £100M offering price wasn’t met by anybody.

And in April of this year, Newcastle were valued at around £174M by Deloitte, and we were the 20th most valuable football club in the world.

It will take around £264M to buy Newcastle, and we just cannot see any buyer coming in for Newcastle at that price.

Maybe the best chance we have of having Newcastle sold, is to have Newcastle become more successful – like win something for the first time since 1969.

But with Mike at the head of the club, and seemingly showing little real ambition – that will not be happening anytime soon.

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239 comments so far

  • Ben3arfa

    Jul 2, 2013 at 10:28 AM

    Comment #1

    FML

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  • Ketsbaia9

    Jul 2, 2013 at 10:29 AM

    Comment #2

    Swansea are showing some ambition. If they sign Gomis, Bony, Chadli and Shelvey, they’ll be a force next season. We need to snap some players up asap otherwise it’ll be another poor season. Spurs have signed Paulinho. We need strikers and flair midfielders.

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  • tequilamag

    Jul 2, 2013 at 10:32 AM

    Comment #3

    Kets If only someone would draw up a list of players we need to buy.

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  • Puppet Pardew's Brainlessness

    Jul 2, 2013 at 10:33 AM

    Comment #4

    @tequila hahahaaaa

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  • Roy Morten

    Jul 2, 2013 at 10:37 AM

    Comment #5

    “I have received a message regarding #NUFC ownership, I’ve decided to post the mail. Coming up shortly #rumours

    A good friend of mine just sent me this on email.. Will ask him were he found it..

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  • TorqToon

    Jul 2, 2013 at 10:40 AM

    Comment #6

    Indykalia mate. Twitter resident ITK.

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  • the truth will out

    Jul 2, 2013 at 10:40 AM

    Comment #7

    ashleys dug a big hole and keeps digging

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  • Ketsbaia9

    Jul 2, 2013 at 10:41 AM

    Comment #8

    It’s like one step forward and 2 steps backwards. We showed ambition in January, but we still need 6/7 first team players to compete with Chelsea, Arsenal, Man City and Spurs.

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  • TorqToon

    Jul 2, 2013 at 10:42 AM

    Comment #9

    So Chris Samba back at anzhi for 12mil!!

    That bloke is seemingly on elastic!!

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  • the truth will out

    Jul 2, 2013 at 10:43 AM

    Comment #10

    we need 6/7 to compete with palace sland etc

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  • proudtobageordie

    Jul 2, 2013 at 10:43 AM

    Comment #11

    indykaila news
    I am trying to confirm with my sources if this email has any legs on it. Very exciting info if details are correct. Info coming up. #NUFC
    Details

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  • brighter

    Jul 2, 2013 at 10:43 AM

    Comment #12

    Mike Ashley is SELFISH.
    You are loser who did intend to get huge money in football world.

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  • jazzyp

    Jul 2, 2013 at 10:43 AM

    Comment #13

    kets
    we’ll need that to stay in the top 10 the way Swansea and villa are signing players never mind the top 4

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  • LooneyToon41

    Jul 2, 2013 at 10:45 AM

    Comment #14

    Samba… nice signing on fees too! Unbelievable stuff!

    Kets, your right of course. We just need Bale, Neymar,Ronaldo,Messi for starters…………!?

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  • Charlie in the Gallowgate

    Jul 2, 2013 at 10:50 AM

    Comment #15

    It’s being reported that Kinnear went above Pardew in getting rid of Perch then surely Pardew’s days must be numbered. mmmm

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  • jayphoto

    Jul 2, 2013 at 10:54 AM

    Comment #16

    Did i just see someone say we need 6/7 to compete with palace??!! Palace will be rock bottom all season, pretty sure theyre just happy to get the tv money and parachute payments! Understand theyre not looking to significantly add to their squad and want to keep giving their young players a chance! Holloway is also tactically very niaive and just attacks and attacks, good to watch but it got blackpool relegated and my bet is palace will be lucky to top Derbys 12 point tally! To say we need to sign players to match them is crazy! Our reserves would be their top players in some cases

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  • proudtobageordie

    Jul 2, 2013 at 10:56 AM

    Comment #17

    Jayphoto

    Nad that season in question 4 of those points were taking of us if im correct so Palace have hope

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  • wolfshead@toon

    Jul 2, 2013 at 10:57 AM

    Comment #18

    @15

    its prob true joe is here to make pards pull his finger out if not then undermine him so much he will want to quit?

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  • the truth will out

    Jul 2, 2013 at 10:58 AM

    Comment #19

    there manager could run our reserves better than our manager and i doubt they will be bottom all season .nothing in football is guarenteed

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  • jazzyp

    Jul 2, 2013 at 10:58 AM

    Comment #20

    jayphoto
    I can only find Chelsea Swansea arsenal spurs villa man city mentioned buddy

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  • one Tony Green

    Jul 2, 2013 at 10:58 AM

    Comment #21

    ED stop pushing some many articles out. This one shows your struggling for things to write about. Be nice to come and the site and have a discussion without the bile seen recently.

    That said it is your blog so you can do what you want. ( just a suggestion )

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  • anirudh175

    Jul 2, 2013 at 10:59 AM

    Comment #22

    We need to buy:
    1)PEA
    2)Zarate
    3)Javier Pastore
    4)Ever Banega
    5)Fernando Gago
    6)Lennon(winger)
    7)a good solid CB (preferably goal scoring- 6-7 a season)

    and we’ll be good to win the Premier League and also qualify for the Champion’s League

    Howay the Lads!!!!

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  • the truth will out

    Jul 2, 2013 at 11:00 AM

    Comment #23

    jay look into your crystal ball again and be honest then look at the video of the entertainers please

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  • the truth will out

    Jul 2, 2013 at 11:02 AM

    Comment #24

    pretty sure theyre just happy to get the tv money and parachute payments! is this ashleys intent also

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  • Unbelievable Tekkers

    Jul 2, 2013 at 11:06 AM

    Comment #25

    I just want this whole PEA thing to be over if he’s coming I’ll be over the moon if he’s not we can get the disappoint over with.

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  • toonarmydownsouth

    Jul 2, 2013 at 11:07 AM

    Comment #26

    BandB
    Very true he did drop back down the pecking order, I’d assumed it was purely pardew relying on seasoned pros due to our league position, not that it worked to well!

    I’d, like you, would like to believe there was some sensible reasoning behind JFK, but I genuinely just can’t see any!
    I mean you’d think he’d at least interview other people for the position
    It’s just baffling

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  • toonarmydownsouth

    Jul 2, 2013 at 11:09 AM

    Comment #27

    Jayphoto
    Don’t think palace will stay up but come off it our reserves wouldn’t get close to there team and they have some very decent players in speroni parr williams bolasie Murray even ramage has refound form there

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  • jayphoto

    Jul 2, 2013 at 11:10 AM

    Comment #28

    Was at #10 – we need 6/7 to compete with palace, s’land etc
    Personally think with our without new players wel be looking at a season of 9th-12th. People underestimate how good our players are and how important a preseason will be to the players we signed in jan. with better tactics etc i would hope for top 6 but can’t see it with the unrest we seem to have

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  • kt97toonarmy

    Jul 2, 2013 at 11:11 AM

    Comment #29

    Anirudh

    Theres no chance of signing at least 5 of them cause ashley will not spend much we mite get PEA nd maybe 2 more but thats it. But also we are having a clearout selling perch who i think he is a good utility player and hes english which we apparantly need 8 of them soooo……..why sell him?

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  • gfp13

    Jul 2, 2013 at 11:11 AM

    Comment #30

    @22

    You really think we can get those players? Lennon woul leave spurs for us? And pastore who I assume is on mega bucks at PSG would leave for us too?, not too sure where gago is playing these days, I think you need to assess your opinion of how big our club is, or isn’t is the case. We need more realistic targets, no point in chasing players who (A) are going to cost too much and (B) won’t wanna come anyway

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  • anirudh175

    Jul 2, 2013 at 11:11 AM

    Comment #31

    hey guys what do you think about buying the players I just mentioned???

    1)PEA
    2)Zarate
    3)Javier Pastore
    4)Ever Banega
    5) Fernando Gago
    6)Aaron Lennon
    5)a good solid CB

    What say???

    Should be fantastic team there!!!

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  • the truth will out

    Jul 2, 2013 at 11:12 AM

    Comment #32

    i dont underestimate them i just dont rate management coaching of them .

    0
  • kt97toonarmy

    Jul 2, 2013 at 11:14 AM

    Comment #33

    Anirudh

    I dont think u have read what myself nd gfp said

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  • Charlie in the Gallowgate

    Jul 2, 2013 at 11:14 AM

    Comment #34

    Latest news on the TOON’s website is that Cabaye is looking forward to the coming season and we will be better prepared with new faces that came in in january – does that mean he is staying unless pushed

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  • jesperfuglsang - captain of the lemon crew

    Jul 2, 2013 at 11:15 AM

    Comment #35

    So why is it MA is going nowhere again?

    …I think I missed that in the article 🙂

    0
  • toonarmydownsouth

    Jul 2, 2013 at 11:15 AM

    Comment #36

    Don’t normally take Indy kalia to seriously but could this tie in with Ashley’s random statement a week ago saying although he’s not actively trying to sell the club he would consider it if someone met his valuation?

    0
  • kt97toonarmy

    Jul 2, 2013 at 11:16 AM

    Comment #37

    Charlie u got the link to back this up m8

    0
  • ToonMauritius

    Jul 2, 2013 at 11:16 AM

    Comment #38

    hi lads
    Dutch Football ?@football_oranje 1h
    Toby Alderweireld has left Ajax’s training camp in Austria due to personal reasons the club have confir

    0
  • Rotonda heights

    Jul 2, 2013 at 11:16 AM

    Comment #39

    JFK won nowt at Wimbledon, got sacked at Forest with them in a relegation place, got Luton relegated before bringing them back up in 2nd place and apparently spent 2 years at Newcastle when he was here for 9 months. An experienced manager who has won absolutely f..k all in his managerial career.

    Sounds like an older version of Pardew.

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  • jazzyp

    Jul 2, 2013 at 11:17 AM

    Comment #40

    I see spurs are letting adebayour go for around 5 mill.
    would this be an upgrade on the likes of bent if we are truthfully interested in this player !!!

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