There was news yesterday that Mike Ashley’s major retail business that he started back in the 1980s – Sports Direct – has again done very well in the last financial quarter, and the profits have surged because of excellent sales over Christmas.
Mike Ashley – still knows little about football
Sports Direct reported quarterly profits of £280.7M, and that was an increase of 14.6% over the previous year, and not surprisingly the shares rose over 5% after the excellent results were announced.
Sports Direct revenues for the quarter ended 26th January increased by 11.2% to £655.4M, and the company seems confident of reaching their full-year profits target.
This is what Chief Executive Dave Forsey had to say yesterday:
“Despite tougher comparisons during the period, Sports Retail continues to perform well,”
So there’s no doubt the company is doing very well and Mike Ashley has the retail giant on the right track of increasing revenues and increasing profits – there’s no doubt that Ashley is doing extremely well leading Sports Direct to substantial growth.
And then there’s Mike’s other business – Newcastle United Football Club – but we are not doing as well.
To be fair to the Newcastle owner, he has had a positive impact on the financials at Newcastle, and if you only looked at those, one could even argue the club was in fact successful.
But unfortunately in the world of football, success is not measured by the financials, but how the team performs on the field of play – and Newcastle have not been too good at that in the last two seasons.
If football was based on the financials, we dare say Newcastle would be one of the top four clubs in the Premier League.
But we are not and Newcastle will probably just finish above half way in the league – and therefore be in the top ten in the league – but nowhere near top four.
And it was revealing last October when Alan Pardew had this to say about the Newcastle owner:
“Mike is a strong character who has been a success in his whole business life, and is a genius in that world — but when you come to football the logic doesn’t quite fit,”
“He loves football but he sometimes can’t understand how it works, and it confuses and upsets him, and when he is upset he does things that aren’t brilliant for the football club.”
“That’s just Mike and he has funded the club, made sure we have no debt — other than to himself — and supported me.”
“But unless we get a billionaire from deepest Russia, we are probably not going to be able to compete with the likes of Man United, Man City and Chelsea, which is what our fans want.”
Those words from the manager tell you that his way of running the club will never make Newcastle into a top four side in England.
What Mike Ashley needs to understand is there is another side of football that determines success – and that’s accomplished by buying good players and keeping them.
And by doing that you get a good team that can challenge for trophies, and challenge for a top four position in the league table, and that;s based on how good the team is.
That seems to have completely gone over Mike’s head while he’s been at Newcastle, and the future doesn’t look great – at least not if you want Newcastle to be a top four team in England again.
It’s just not going to happen.
Sad but true. 🙁
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