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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’s Loans Are Not Interest Free – Here’s Why

12:13 am, Wednesday, February 26th, 2014 by Dr. Ed Harrison · 36 Comments

There was a Fans’ Forum meeting on Monday night, the third such meeting, and one of the important questions asked was about all the publicity of Sports Direct at St. James’ Park, which is not being paid for.

sports direct st james' park

SportsDirect.com advertising at St. James’ Park

For example, at the game on Sunday, as well as the Barclay’s Premier League being laid out on the pitch, so was a Sports Direct banner, and if you didn’t know better, you would have thought they were big sponsors of the club.

And it was telling in the US that the commentator for NBC Sports at the beginning of the game on Sunday, called St. James Park the Sports Direct Arena – probably because of all the Sports Direct advertising around.

This is what Fans’ Forum  member Steve Cole asked on Monday;

“What is the saving that Sports Direct makes on advertising around the stadium?”

In reply the club released the following answer;

“The club suggested that while it is always proactively looking to attract new commercial partners and to sell that advertising space, in the current climate it could not command a sum for that space anywhere close to the £129M invested into the club interest free by the owner.”

That’s a different answer than was given at the first Fans’ Forum, when it said the club were looking for sponsors, and Sports Direct were simply filling advertising space, until new advertisers were found.

It’s good that Mike Ashley has loaned the club £129M interest free, and that amounts to around £6.45M each year at 5% interest rate.

But the club should stop calling it interest free,  because for that loan, Sports Direct is getting world-wide advertising at every home game Newcastle play.

It’s time the Newcastle Board started to speak more accurately and more frankly,  about why we have all those Sports Direct advertising at the stadium.

It now seems it’s because of the interest-free loans Mike Ashley has given the club, and that’s the very first time we’ve heard that.

So that means in effect they are not interest free loans.

What do you think?

Comments welcome.

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Tags: Financial Fair Play · Financials · Newcastle News · Other News



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36 responses so far ↓

  • 1 John Tudor // Feb 26, 2014 at 12:16 AM

    just you no body talks to wums

  • 2 John Tudor // Feb 26, 2014 at 12:17 AM

    dont say that ed tds wont agree

  • 3 ToonDarnSarf // Feb 26, 2014 at 12:19 AM

    Mister Tuff

    Face to face, phone, text, video conference, email…I communicate pretty much the same way in all. I’m not a different person on here just because I can be. Although admittedly my words carry differently in person due to size, accent, body language etc.

  • 4 jesperfuglsang - captain of the lemon crew // Feb 26, 2014 at 12:19 AM

    Ibiza…is it Reading or there about your family lives?

    …I seem to recall your sister lives in the London area right ;)

  • 5 John Tudor // Feb 26, 2014 at 12:20 AM

    tds yer sacked

  • 6 Belfast // Feb 26, 2014 at 12:21 AM

    Haha Brillant

    Basically no interest in advertising anybody else apart from themselves.

  • 7 John Tudor // Feb 26, 2014 at 12:21 AM

    nope got that wrong ff sackless

  • 8 ToonDarnSarf // Feb 26, 2014 at 12:22 AM

    JT

    You’re just proving my point that you’re a bored and sad little man who gets kicks out of posting stupid one liners on a football blog. If you’re not going to read and respond to NUFC topics, why don’t you just go and do something more useful with your life?

  • 9 Belfast // Feb 26, 2014 at 12:23 AM

    Tudor time for your meds big lad.

    You’re fighting with yourself here

  • 10 Belfast // Feb 26, 2014 at 12:25 AM

    Or maybe not.

  • 11 jesperfuglsang - captain of the lemon crew // Feb 26, 2014 at 12:25 AM

    The quote says the £129M is an investment not a loan ;)

  • 12 John Tudor // Feb 26, 2014 at 12:26 AM

    TDS
    You’re just proving my point that you’re a bored and sad little man who gets kicks out of posting stupid one liners on a football blog. If you’re not going to read and respond to NUFC topics, why don’t you just go and do something more useful with your life?

  • 13 ToonDarnSarf // Feb 26, 2014 at 12:27 AM

    Belfast

    Oops. Shouldn’t have risen to the bait there…should have just gone to bed…too tempting…

  • 14 John Tudor // Feb 26, 2014 at 12:27 AM

    NOPE carry on TDS

  • 15 John Tudor // Feb 26, 2014 at 12:29 AM

    Oops. Shouldn’t have risen to the bait there…should have just gone to bed…too tempting…

  • 16 John Tudor // Feb 26, 2014 at 12:29 AM

    any more wum

  • 17 ToonDarnSarf // Feb 26, 2014 at 12:30 AM

    I think not. I’ll leave you to your solo rant. Some of us have lives to live in the morning…

  • 18 John Tudor // Feb 26, 2014 at 12:31 AM

    i posted more intelligent posts earlier till you came on and kicked off
    prepare yourself well

  • 19 manxpie // Feb 26, 2014 at 12:31 AM

    sorry but sports direct are not loaning the club 129 mill
    ashley is not sports direct
    ashley loaned the club
    sports direct and there shareholders and ashley is the source of the advertising!
    so surely they should be seperated from each other?

  • 20 John Tudor // Feb 26, 2014 at 12:32 AM

    Some of us have lives to live in the morning…is your rent due

  • 21 Belfast // Feb 26, 2014 at 12:32 AM

    I wonder how much it would cost sports direct to advertise their business at a football ground for over 5 years ?

    Certainly wouldn’t be cheap..

  • 22 John Tudor // Feb 26, 2014 at 12:33 AM

    not solo

  • 23 Roy // Feb 26, 2014 at 12:34 AM

    Hi

    As I no longer live in the Newcastle area I have a question
    that I hope someone can answer..

    Dose the club still have a club shop? also I have just bought my grandson the current 1st team shirt from the official website, does this money go to the club?

  • 24 Belfast // Feb 26, 2014 at 12:34 AM

    Goodnight.

    Tudor you’re in charge, bite who you want.

  • 25 John Tudor // Feb 26, 2014 at 12:36 AM

    TDS
    You’re just proving my point that you’re a bored and sad fat f..ker man who gets kicks out of posting derisory remarks on a football blog. If you’re not going to read and respond to NUFC topics, why don’t you just go and do something more useful with your life?like earn your rent not pimp your soul

  • 26 John Tudor // Feb 26, 2014 at 12:38 AM

    yes roy TDS CAN TELL YOU WHERE IT IS I CANNOT AS IM INCAPABLE AND I SHOUT ALOT sorry yes the club give it freely to ashley you should have bought a snidey one

  • 27 John Tudor // Feb 26, 2014 at 12:40 AM

    grrrrr did that answer it for you roy

  • 28 John Tudor // Feb 26, 2014 at 12:41 AM

    lights out

  • 29 Shot Bru // Feb 26, 2014 at 12:41 AM

    The English commentator during the Villa game televised here in Oz called it the sports direct arena too

  • 30 John Tudor // Feb 26, 2014 at 12:42 AM

    lights back on

  • 31 John Tudor // Feb 26, 2014 at 12:43 AM

    yes bru sad aint it

  • 32 John Tudor // Feb 26, 2014 at 12:44 AM

    lights off again

  • 33 Roy // Feb 26, 2014 at 12:48 AM

    John Tudor

    I take it that means all monies for shirts etc now go to S….. D….. (b….cks trust me to get it wrong)

  • 34 Mister Tuff // Feb 26, 2014 at 12:49 AM

    manx @19 – good spot – I’d missed the obvious point -it is Mr Tubbs (apparently) who has made the interest free loan to NUFC. (not SD)
    So why is SD getting free advertising at SJP.
    There was another answer about the loan which I spotted – it was suggested that it was beneficial to NUFC not to pay off the loan. However the exact reasons were not given – a line of questioning needs to be pursued about this aspect of the loan. This might indeed be true but with all the chicanery going on at the club it has to be pursued.
    Seems some of the questioning at the forum was very good.

  • 35 beefman13 // Feb 26, 2014 at 12:54 AM

    These are some of the reasons MA is distrusted so much, its underhand tactics and cloak and dagger stuff that gets all our backs up.

    He loaned the club as he says (his club?) 129 million, interest free? not for our benefit but for his, he had the means to do it, it saved him a small fortune, he was just protecting his purchase, the club make it sound like he did us a massive favour, due dilligence wasnt done Mike thats why you had to put your hand in your own pocket for your club which U own.

    Its a bloody cheek therefore saying oh well im giving you`s an interest free loan so i will treat myself to an estimated 10 million a year in free advertising for SD, totally bang out of order, you bought the club lad, you gave yourself an interest free loan dont make out that you are doing us a favor, you are just protecting yourself, because u can financially, its such a crappy stroke to pull, its always all about protecting your investment Mike, and you bloody well know it.

  • 36 nufc 11 // Feb 26, 2014 at 11:30 AM

    Nufc make a profit for the 3rd year in a row, We sell AC for 35million, and Cabaye for 20million, we play in the most lucative league in the world, we get better tv money than any other league and will only get more, we have one of the lowest wage bills in the league and get 52,000 fans at home plus corporate boxs and to top it off as the club say we last year signed the the most lucative sponsership deal in our history with Wonga. Yet we cant pay MA back any of his 129million owed to him now common that man is deluded if he thinks we will fall for that one, looks like with everything included it will cost 350/400million to get him out as he is still owed 129million knowing him he prob has that cash already siphonined that cash through some cunning scheme. Has the poor mouth up and looking to asset strip the club further.




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