A Big Surprise From Mike Ashley
4:04 pm, Thursday, April 14th, 2016 by Dr. Ed Harrison · 4 Comments
The Newcastle United 2014/2015 accounts were apparently made public today and it appears the club are working on an agreement to pay for the services Sports Direct gets from Newcastle.We got this information initially from The Mag who seem to be on the ball here – credit to them in these rather dark times for the club.This is the specific extract from those accounts:
“During the current and prior year, advertising and promotional services were provided to Sports Direct International being a company associated with the ultimate owner of the company, Mr. MJW Ashley.“
“No consideration has been paid by Sports Direct International for these services to date, but Sports Direct International and the Company are in the process of agreeing an arms length rate for these services and the Company anticipates receiving payment for these services in the future.“
“During the current and prior year, advertising and promotional services were provided to companies associated with Mr. MJW Ashley, the ultimate shareholder of the Company’s ultimate parent undertaking MASH Holdings Limited.“
“No consideration was paid or payable for these services“
Not sure what arms length rate exactly means, but it probably means a great rate for Sports Direct.
And of course if we are relegated – which looks almost a certainty at the moment – Sports Direct will not be paying too much for those services to a Championship club, who are not on TV very much at all.
Tags: Financial Fair Play · Financials · Newcastle News · Other News · Premier League