Sports Direct have issued their annual results just in the nick of time. It appears as though they do pay Newcastle United £2m a year in advertising rights.
Mark Douglas of the Chronicle has just sent out the following tweet.
Sports Direct confirm they are paying £2million for advertising rights for the 2019/20 season in latest set of financial results.
— Mark Douglas (@MsiDouglas) July 26, 2019
They also are due to pay an enormous amount in taxes according to the tweet below.
BREAKING Sports Direct received a tax demand from Belgium authorities on Thursday for €674 million
— Alastair Jamieson (@alastairjam) July 26, 2019
It’s been a bad day all around for Mike Ashley and Sports Direct as the delay in issuing the results has led to a lot of consternation in financial circles.
Some top financial and news outlets have published articles announcing their astonishment at the actions taken by Sports Direct.
Here are links to a few of the articles about what has transpired today with Sports Direct and the possible implications for the company.
Update: no update at 16:00 meaning the update to the update to the delayed update will now have to wait until Monday. Frankly, does anyone really care anymore?
Is This The Beginning Of The End For Mike Ashley And Sports Direct? https://t.co/SassXfbLZP via @forbes— Andrew Busby (@andrewbusby) July 26, 2019
Britain's Sports Direct results suffer delay upon delay https://t.co/cTeEPgsSXZ pic.twitter.com/WAdEOFU0vo
— Reuters UK (@ReutersUK) July 26, 2019
BBC News – 'Shambles' as Sports Direct's results delayedhttps://t.co/KEavsAGn4j
— Kevin Abbott (@KevinJAbbott) July 26, 2019
Silence from Sports Direct as investors knock shares https://t.co/6eNr9cVkBo pic.twitter.com/DRkaLlANyN
— City A.M. (@CityAM) July 26, 2019
UPDATE 2-#Vodafone helps FTSE 100 gain; Sports Direct slips as results go AWOL https://t.co/s9W2XEeh6r
— Devdiscourse (@dev_discourse) July 26, 2019
It's almost 5pm and we still have not heard a single thing from Sports Direct and their delayed full-year results… https://t.co/7jJ5ZJ9qux pic.twitter.com/chzmhx9ph5
— Retail Gazette (@retailgazette) July 26, 2019
Debenhams boss reassures staff amid Sports Direct results fiasco https://t.co/0aNcjh61lo
— Retail Week (@RetailWeek) July 26, 2019
Sports Direct results suffer delay upon delay https://t.co/aWYpb7gfAW via @IrishTimesBiz
— Irish Times Business (@IrishTimesBiz) July 26, 2019
Mike Ashley’s Sports Direct delays the publication of its results for the third time, extending a two-week long watch for the earnings report https://t.co/iBewt1Tw4e
— Bloomberg Australia (@BloombergAU) July 26, 2019
81 comments so far
posada
Jul 26, 2019 at 6:03 PM
Comment #41Do they have any really tough prisons in Belgium.
Soap on a rope for Ashley.
oldarse
Jul 26, 2019 at 6:03 PM
Comment #42Sports Direct finance boss quits after day of missed deadlines
Jib
Jul 26, 2019 at 6:05 PM
Comment #43https://beta.companieshouse.gov.uk/company/06035106/filing-history
santon3
Jul 26, 2019 at 6:06 PM
Comment #44it’s a good news, right? for those who want him to sell the club. now he needs money, he must let go one of his assets which is NUFC.
hibbit
Jul 26, 2019 at 6:06 PM
Comment #45SD up the creek without a paddle……………. Mike Ashley is only a share hold,yes he’ll take a hit on his holding but he wont be skint,
keep your eyes open for a pre pack deal were he buys SD for next to nowt…….and don’t forget Ashley himself owns a lot of the brands sold in the stores so he’ll be one of the major creditors. huge tax breaks for Ashley then buys the stock and the company back through a pre pack for next to nowt, next few days are going to be very interesting, just another Philip Green
oldarse
Jul 26, 2019 at 6:07 PM
Comment #46Sports Direct statement: “The Group has been the subject of a tax audit in Belgium and, on 25 July 2019, received a payment notice from the Belgian tax authorities in the amount of €674 million (including 200% penalties and interest)”
Sports Direct FC
Jul 26, 2019 at 6:08 PM
Comment #47Yeah, would hate for him have to sell something (NUFC) to pay that. That would just be horrible.
geordietom
Jul 26, 2019 at 6:09 PM
Comment #48Neil …
glad to hear mate as long as he’s ok .thanks for getting back mate …
Muz
Jul 26, 2019 at 6:09 PM
Comment #49Sports Direct could go bankrupt – not Mike Ashley. As a LTD company, he is insulated from losses that the company suffers. If SD was to go bankrupt, NUFC wouldn’t be touched.
He is not however immune to losses in share value. That 700M tax demand with penalties will wipe an even bigger chunk off them; the SD share price is down 10 points to close yesterday and can only see that difference growing as experts pour over the results and see the creek of sh*t that he looks like he’s floating down. While he’s immune from losses if the company folded, (it won’t so don’t get your hopes up there), he is liable for the decisions the company makes as its primary shareholder and director.
Things to think on, if he’s been accused of tax dodging and hit with a demand he might fight it. If he fights it, it goes to court and if they find against him he is guilty of tax evasion. Which, if i’m not mistaken, rules him out of owning a football club…
Seeing just the highlights of that report, I’d still wager he sells the club before Christmas. I said a while ago that selling would make him look weak. He’s consolidated his position, probably shifted a few of his investments around to insulate him better, but now his ‘weakness’ is there for all to see.
jon
Jul 26, 2019 at 6:09 PM
Comment #50He doesn’t need the money, sd do, 2 separate things.
Jib
Jul 26, 2019 at 6:10 PM
Comment #51Here’s a nightmare scenario
Ashley sells up his SD shares for a huge wedge
the decides to focus all his attention on NUFC
Arggh !!!!!!!!
Nooooooooooooooooooooooooo!!!!!!!!!!!!!!!!!!!
Jib
Jul 26, 2019 at 6:10 PM
Comment #52then even
Reilly
Jul 26, 2019 at 6:11 PM
Comment #53karma
barrowtoon
Jul 26, 2019 at 6:11 PM
Comment #54Hope he goes to a Belgium jail where all the inmates are built like Vincent Kompany… pick up the soap fat boy!
Muz
Jul 26, 2019 at 6:12 PM
Comment #55Wrong Jon, the majority of his wealth is made up of SD shares which are falling in value. He called it ‘wallpaper money’ himself. He’s still rich, but he could end up being nowhere near as rich as he was.
oldarse
Jul 26, 2019 at 6:15 PM
Comment #56See what happens Monday when the stock market opens should be very interesting the best till last eh
geordietom
Jul 26, 2019 at 6:16 PM
Comment #57Jib …
we all know he’s a billionaire … but to take a hit of nearly 700 million plus whatever else they tag onto his bill , is still hard to take . i like a lot of folk on here just want rid of him ASAP mate…
santon3
Jul 26, 2019 at 6:16 PM
Comment #58I might be wrong, if owner of a company declared bankruptcy and convicted tax fraud then government will seize all his assets and then auction them.
Am I wrong?
Sports Direct FC
Jul 26, 2019 at 6:17 PM
Comment #59As majority shareholder and director cant he be fired by the board?
Muz
Jul 26, 2019 at 6:18 PM
Comment #60The worst bit is, it’s the weekend so it means ‘experts’ can pour over his report and make their minds up. He however, can’t do any transactions or trades to shift/offset some of his losses. I suspect the delay in the report being released was engineered to allow him and key shareholders the opportunity to dump some shares.
santon3
Jul 26, 2019 at 6:18 PM
Comment #61only he can fire himself
Sports Direct FC
Jul 26, 2019 at 6:19 PM
Comment #62Santon3
Too bad that would make my year
Muz
Jul 26, 2019 at 6:20 PM
Comment #63As majority shareholder, he possesses more voting rights than the remainder of the board. Only in very special and extenuating circumstances can he be ousted and even then they have to go to court to do it.
geordietom
Jul 26, 2019 at 6:20 PM
Comment #64Reilly @ 53…
Chameleon …
jon
Jul 26, 2019 at 6:21 PM
Comment #65Not sure I agree with you there Muz, he has money/shares all over the place, sure, he’ll lose a sh!t load with SD, depending on what happens, but they’re possibly not tied to his personal fortune, but I can agree to consede, I’ve had 3 staropramen, maybe (probably) talking bull.
😉
🙂
oldarse
Jul 26, 2019 at 6:23 PM
Comment #66Neil can someone email Rafa give him the news put a spring in his step mate
Sports Direct FC
Jul 26, 2019 at 6:23 PM
Comment #67Muz
Yeah, I kind of answered my question while writing it….majority shareholder.
santon3
Jul 26, 2019 at 6:24 PM
Comment #68I don’t know how much % tax in belgium, if the tax demand is 674mil euro then how profit SD makes?
geordietom
Jul 26, 2019 at 6:24 PM
Comment #69just a thought is that why Rafa left because he knew what was coming …
santon3
Jul 26, 2019 at 6:24 PM
Comment #70how much profit SD makes?*
oldarse
Jul 26, 2019 at 6:26 PM
Comment #71He did say not long ago his money tied up in business
geordietom
Jul 26, 2019 at 6:27 PM
Comment #72Liverpool have put a price on Harry Wilson £ 25 million …
Sports Direct FC
Jul 26, 2019 at 6:28 PM
Comment #7350 million for Longstaff might look pretty good to him right about now.
toon22
Jul 26, 2019 at 6:29 PM
Comment #74Zippity doo darrr
Zippity day
My oh my what a ………
It's on
Jul 26, 2019 at 6:29 PM
Comment #75As previously posted on this blog recently.
HMRC can now compare the value of the advertising rights at SJP with that earned by other PL teams.
If £2m/season is well below the average, NUFC (Wholly owned by one person) is avoiding paying the appropriate amount of VAT for a product or service.
MA will be having a pretty shitty weekend this weekend.
Thinking about this, it is the kind of thing that stops takeovers.
“Any shit going down that we need to know about”
“Well we’ve been avoiding paying tax on various things”
“OK, we’ll buy the club if you pay any penalties as a result of your dodgy deals”
“That’ll be a no then”
Muz
Jul 26, 2019 at 6:29 PM
Comment #76Most of his other ventures are purchased through SD – which means all of them are affected. He certainly will have more shares elsewhere in other businesses, (most ‘billionaires’ have a portfolio), but the majority of his money is in SD. Again he’s not going to be poor, but he is going to be taking a big hit.
Also, if you want to look at where our local journalists loyalties truly lie, see Mark Douglass tweets that SD pay the club £2M a year for advertising as if that’s an excuse. For one thing, that amount of tat plastered over any other clubs ground would cost more than £2M. Second, I’ve never seen a more blatant attempt at running a puff piece to dodge the fact Ashley is a tax dodger to a tune of nearly £700M in just ONE COUNTRY!!
Muz
Jul 26, 2019 at 6:32 PM
Comment #77HMRC won’t look at the advertising rights income. It’s entirely down to the two separate businesses how much one charges the other. There’s actually no need to pay since Ashley is the major stakeholder in both businesses. This is more a matter of ethics and paying what’s fair/due.
I don’t know if you can see older results but I bet he didn’t pay anything in previous seasons; he’s just needed to find somewhere to dump £2M as a cost to the business.
oldarse
Jul 26, 2019 at 6:32 PM
Comment #78And they say Ashley has a brilliant business BRAIN fkin hell he has
It's on
Jul 26, 2019 at 6:33 PM
Comment #79The Belgian thin is a Sports Direct thing and will impact on advisors/shareholders.
Ashley may want some money to try and keep the share price up (or buy more shares when they are cheaper).
The story of the House of Fraser disaster is yet to unfold.
oldarse
Jul 26, 2019 at 6:35 PM
Comment #80Bet he doesn’t need any drink tonight to spew into the fire place