This Is The Way Ashley Can Make Big Money Off Newcastle


It’s very difficult to make money when you own a football club.

One way to try to do that is by building up the profits every year, which is something Mike Ashley tried – and he put the financials at Newcastle in a very good state, but if the team doesn’t do well on the field of play it doesn’t mean too much.

Mike Ashley Sky Sports West Ham Match May 2015

Mike Ashley – vows to invest in Newcastle

It’s something Mike Ashley will have learned over the last eight years – assuming he didn’t already know that back in 2007.

When clubs go public – it’s also very difficult to make money off their stock,  simply because sports clubs are not good  investments, and history has proven that.

Investing money in Newcastle United is a bad idea – at least financially.

Mike Ashley seems to have learned that being top of the financial league table in England means (absolutely) nothing, and the only thing that matters in football is how the team performs on the pitch.

And if Mike Ashley could build a top team at Newcastle and start to finish in the top four of the Premier League, and start winning things, then the club would be worth a lot more than he paid for Newcastle eight years ago.

Ashley paid about £133M for Newcastle in the summer of 2007, and he has put about £135M into the club since that time – so if Mike were to sell Newcastle, he would need to sell for about £270M to get his money back.

So there’s  a big financial benefit  why Ashley should want to build a top team and have Newcastle win a local cup in England – which we haven’t achieved for 50 years.

Being in the Champions League also adds a significant amount to the club’s value, not to mention the £32M minimum the club will rake in by reaching and playing in the group stages of the Champions League.

When Mike Ashley arrived at the club, he talked about building the global brand of Newcastle United, but he hasn’t been successful in doing that – and in fact if anything our brand has been devalued over the last eight years.

But it’s interesting that Mike Ashley came out in May and said he wanted Newcastle to win something before he would consider selling the club.

He also promised that Newcastle would start to make their own luck.

The summer was very encouraging with four good players brought in and over £52M spent.

It will take time to build up the quality of the squad – but if Mike Ashley continues to invest in the club, and Steve McClaren and his coaching team can make Newcastle into a very good side – then who knows what we can achieve and what we can win in say the next three years.

And then Mike Ashley can sell the club and make a big profit on what he bought the club for back in 2007.

But he must make Newcastle United into a top team in England again, and then it’s a win-win strategy for both club and for Mike Ashley.

Sounds good to us.

Comments welcome.



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120 comments so far

  • toon kk

    Sep 12, 2015 at 3:53 PM

    Comment #1

    What a quality hungry side Pards has with Palace, its all down to pace, we’re light years behind them.

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  • Tsunki

    Sep 12, 2015 at 3:53 PM

    Comment #2

    Ruddy Out!

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  • Tsunki

    Sep 12, 2015 at 3:54 PM

    Comment #3

    I agree with Belfast I always got along with Ruddy, not fussed about Cieran 😉

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  • Belfast

    Sep 12, 2015 at 3:56 PM

    Comment #4

    Charlie Austin scored today Ed.

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  • Ruddy Marveaux-lous

    Sep 12, 2015 at 3:56 PM

    Comment #5

    Yo from previous thread

    Woefully short at centre half still, with Colo still in the side and Saylor and Willo poor players. Mbemba could be decent but it’s early days. CM is still a problem position as I’m not sold on Anita, I can count on one hand the number of games Sissoko performs well in a season and Colback is bang average with work ethic. In attacking positions Thauvin could be a very good player, Wijnaldum looks a good addition too, but we’re missing any pace in our attack, Up front we’ve got a few options which is good but all in all I think our squad is seriously lacking when Obertan is making the bench…

    Just my thoughts.

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  • Ruddy Marveaux-lous

    Sep 12, 2015 at 3:57 PM

    Comment #6

    Skunki

    Yeah that Ciaran bloke was a right knob head. I’m glad he’s gone. All we need now is fake Ruddy back and it’ll be like the good old days :p

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  • Jib

    Sep 12, 2015 at 4:00 PM

    Comment #7

    The premise of that argument is totally wrong.

    This morning Ian posted an article from the Times chief Sports Writer which talked about the money that sloshes around the EPL changing the demographics of footy and undermining the need for a big fan base.
    If you take the arguments one step further , all clubs must , on a simple accounting basis , be worth about 10 years net profits.

    Which means AFC Bournemouth must be worth about £450 million.

    Watford will make about double what the winner of this years Champions League will make.

    The landscape has shifted dramatically.
    I don’t know if Mike Ashley has amazing business prescience or is a jammy bugger but he couldn’t have bought the Toon at a better time.

    Fat Freddy must be furious.

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  • Pokat

    Sep 12, 2015 at 4:05 PM

    Comment #8

    Yeah Skunki you can’t even spell Ciaran properly he was an alright bloke!

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  • SPRINGY

    Sep 12, 2015 at 4:06 PM

    Comment #9

    any decent palace game links

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  • Belfast

    Sep 12, 2015 at 4:06 PM

    Comment #10

    Ed did you not hear me?

    Charlie Austin scored today. Nudge nudge wink wink.

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  • Belfast

    Sep 12, 2015 at 4:07 PM

    Comment #11

    You always where the popular one Pokat

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  • WWSBRD

    Sep 12, 2015 at 4:09 PM

    Comment #12

    Ruddy
    CB we have 6 atm mate club look at numbers not quality so that’s more that what the club want already hence no FB cover what do ever

    CM again we are stocked with numbers and wasn’t the worst off in the starting 11 so club can afford to ignore it. The top 8 thing is a future target not for this season. It is a building process mate and I’ve no doubt it’ll be slow

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  • Tsunki

    Sep 12, 2015 at 4:09 PM

    Comment #13

    Cram it Polekat you got me in enough trouble. Ed get that Austin article out pronto!

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  • Belfast

    Sep 12, 2015 at 4:11 PM

    Comment #14

    I would hazard a guess the next article will be *January target scores again*

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  • toon kk

    Sep 12, 2015 at 4:13 PM

    Comment #15

    We have to stay in the premier league for Mash to try and do anything with the club, paying Millions on a lone striker who is really not ready for the prem is ok but will he be enough? Im not so sure. Another gamble. A proven goal scorer would have made more sense.

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  • Tsunki

    Sep 12, 2015 at 4:14 PM

    Comment #16

    I must have traversed a parallel universe I can’t remember agreeing to everything Ruddy said in a post before. Or have I changed that much ha ha

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  • Ron Knee

    Sep 12, 2015 at 4:14 PM

    Comment #17
  • WWSBRD

    Sep 12, 2015 at 4:15 PM

    Comment #18

    On topic
    This assumes Ashley isn’t already getting exactly what he wants from his ownership. We can only hope someone offers him a pot of gold and he finally leaves the North for good soon

    The parties that will be had in Newcastle on that day, bright sunshine in the hearts of all toon fans on that day

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  • Mister Tuff

    Sep 12, 2015 at 4:16 PM

    Comment #19

    Mr Tubbs……………………………..OOT
    Penfold………………………………..OOT
    Yodellers of bwave new world……OOT
    Jib Jibberish……………………………OOT
    Jibs’ Uncle Peanut……………………OOT
    Heros from across the sea………….OOT

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  • SPRINGY

    Sep 12, 2015 at 4:24 PM

    Comment #20

    cheers ron knee
    bored so may as well watch that!lol

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  • tonynufc

    Sep 12, 2015 at 4:26 PM

    Comment #21

    Right lads. Can anyone Shine some light on what I have is worth. I have a signed ball of the whole Newcastle team from 85/86.may b 84/85. Bought at charity for £50 28 years ago. Any ideas or takers

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  • Tsunki

    Sep 12, 2015 at 4:33 PM

    Comment #22

    Can’t agree in any way with the article. Mike took a punt on a cheap purchase of a marketable brand which uniquely served his promotional purposes for SD. I’m sure his analysts foresaw to some extent the globalisation of the game as satellite TV extended it’s iron grip around the entertainment and information globe. There’s never been a better time to own a football club PROVIDING that you don’t allow yourself to forget that the sporting institution is what holds up it’s value as an entertainment proposition. Mike did release his grip on that and last season was a jab in the buttocks with a pointed stick. Unfortunately I am still of the opinion he has spent only enough to keep the old man propped up, and the promises of ‘winning something’ are little more than appeasement. But that’s my cynical slant. I may, hopefully be wonderfully proved wrong.

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  • jesperfuglsang - capt'n awesome of the lemon crew

    Sep 12, 2015 at 4:34 PM

    Comment #23

    Ruddy…been great thank you 🙂

    …another offspring and busy ad hell!

    Have you finished law school?

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  • Tsunki

    Sep 12, 2015 at 4:36 PM

    Comment #24

    Jesper I think he’s a Criminal lawyer. Bound to be.

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  • Tsunki

    Sep 12, 2015 at 4:38 PM

    Comment #25

    Tony nufc – so you say you only have one ball?

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  • WWSBRD

    Sep 12, 2015 at 4:40 PM

    Comment #26

    I bid £2.50

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  • Jib

    Sep 12, 2015 at 4:42 PM

    Comment #27

    tonynufc

    It depends on the sigs

    You should have

    McCreery
    Roeder
    Clarke
    Wharton
    Heard
    Carney
    Reilly
    Anderson

    If you also have Beardsley Waddle MacDonald better

    If it should have Gascoigne as well very good.

    If its in a display case 3 or 4 hundred

    Just the ball max £200

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  • tonynufc

    Sep 12, 2015 at 4:47 PM

    Comment #28

    Just one ball. Mitre England ball. But faded but expected over 28 years but definitely gazza on there. Some hard to .ale out cos they are autographs. And they can look nothing like the names

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  • WWSBRD

    Sep 12, 2015 at 4:49 PM

    Comment #29

    Gazzas on it? Hmm put my bid up to £3.50

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  • tonynufc

    Sep 12, 2015 at 4:51 PM

    Comment #30

    Piss of wwsbrd

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  • Ruddy Marveaux-lous

    Sep 12, 2015 at 4:56 PM

    Comment #31

    Yo

    Not a chance we’ll ever get to 8th + a cup unless we start spending a lot more in order to catch up and keep pace with the other sides competing for top 8. Either that, or we drastically improve what is coming out of our academy to supplement the first team.

    We’ve not produced a single player (save Dummett, and Saylor) who are legitimate first teamers so numbers mean nowt. I don’t consider the likes of Mbabu, Satka et al because they’re nowhere near the first team, same for midfielders. My concern is about the quality of our first team squad and it’s just not there to be at the level we want to be and I don’t foresee it ever being at the level where we’ll be challenging top 8 – not under Ashley anyway.

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  • WWSBRD

    Sep 12, 2015 at 4:57 PM

    Comment #32

    4.50 but that better include postage

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  • tonynufc

    Sep 12, 2015 at 4:58 PM

    Comment #33

    Seriously. What do yous think the value is

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  • Ruddy Marveaux-lous

    Sep 12, 2015 at 4:59 PM

    Comment #34

    I should rephrase – they are near the first team, but they’re not where they need to be in terms of quality to be actual first team players.

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  • Belfast

    Sep 12, 2015 at 4:59 PM

    Comment #35

    Is this ball flat?

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  • WWSBRD

    Sep 12, 2015 at 5:01 PM

    Comment #36

    Ruddy
    Haha cup run? Am yet to be convinced that’s anything other than guff yet mate. Heard it all before. I expect the real target is stay in the PL and increase our players value

    We’ve got Aaron’s and Sammy (who is alright, worthy squad player in my eyes better than Goofy and fills the HG quota) both sort of out of the academy

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  • tonynufc

    Sep 12, 2015 at 5:03 PM

    Comment #37

    Yes Belfast. Wouldn’t expect it to be fully inflated after 28 years
    Why

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  • Ruddy Marveaux-lous

    Sep 12, 2015 at 5:04 PM

    Comment #38

    Yo

    Personally I think Sammy is utter cack. Aarons has played what, 6/7 games for us? He’s an unknown quantity as well so it’s hard to judge him either, but he looks like he could be a good first team player, so decent shout.

    On the cup run, I agree, it’s nothing but guff. The target is what it’s always been – and that will be his greatest victory. Selling us the same shit and convincing us it’s different.

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  • WWSBRD

    Sep 12, 2015 at 5:04 PM

    Comment #39

    tonynufc
    Mate it’s a blog not eBay get on to the backpage shop in town and they can give u an idea or Google a NUFC memorabilia web site

    Any idea u get on here is going to be pie in the sky bs

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  • tonynufc

    Sep 12, 2015 at 5:06 PM

    Comment #40

    Wwsbrd

    I was only trying to get an idea b4.I did that

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