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Sports Direct Issues Annual Results – They Do Pay For Newcastle Advertising



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.

They also are due to pay an enormous amount in taxes according to the tweet below.

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.


81 comments so far

  • posada

    Jul 26, 2019 at 6:03 PM

    Comment #41

    Do they have any really tough prisons in Belgium.
    Soap on a rope for Ashley.

    3
  • oldarse

    Jul 26, 2019 at 6:03 PM

    Comment #42

    Sports Direct finance boss quits after day of missed deadlines

    5
  • santon3

    Jul 26, 2019 at 6:06 PM

    Comment #44

    it’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.

    1
  • hibbit

    Jul 26, 2019 at 6:06 PM

    Comment #45

    SD 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

    7
  • oldarse

    Jul 26, 2019 at 6:07 PM

    Comment #46

    Sports 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)”

    2
  • Sports Direct FC

    Jul 26, 2019 at 6:08 PM

    Comment #47

    Yeah, would hate for him have to sell something (NUFC) to pay that. That would just be horrible.

    3
  • geordietom

    Jul 26, 2019 at 6:09 PM

    Comment #48

    Neil …

    glad to hear mate as long as he’s ok .thanks for getting back mate …

    8
  • Muz

    Jul 26, 2019 at 6:09 PM

    Comment #49

    Sports 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.

    14
  • jon

    Jul 26, 2019 at 6:09 PM

    Comment #50

    He doesn’t need the money, sd do, 2 separate things.

    0
  • Jib

    Jul 26, 2019 at 6:10 PM

    Comment #51

    Here’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!!!!!!!!!!!!!!!!!!!

    7
  • Jib

    Jul 26, 2019 at 6:10 PM

    Comment #52

    then even

    0
  • Reilly

    Jul 26, 2019 at 6:11 PM

    Comment #53

    karma

    3
  • barrowtoon

    Jul 26, 2019 at 6:11 PM

    Comment #54

    Hope he goes to a Belgium jail where all the inmates are built like Vincent Kompany… pick up the soap fat boy!

    7
  • Muz

    Jul 26, 2019 at 6:12 PM

    Comment #55

    Wrong 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.

    3
  • oldarse

    Jul 26, 2019 at 6:15 PM

    Comment #56

    See what happens Monday when the stock market opens should be very interesting the best till last eh

    0
  • geordietom

    Jul 26, 2019 at 6:16 PM

    Comment #57

    Jib …

    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…

    5
  • santon3

    Jul 26, 2019 at 6:16 PM

    Comment #58

    I 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?

    1
  • Sports Direct FC

    Jul 26, 2019 at 6:17 PM

    Comment #59

    As majority shareholder and director cant he be fired by the board?

    0
  • Muz

    Jul 26, 2019 at 6:18 PM

    Comment #60

    The 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.

    2
  • santon3

    Jul 26, 2019 at 6:18 PM

    Comment #61

    only he can fire himself

    0
  • Sports Direct FC

    Jul 26, 2019 at 6:19 PM

    Comment #62

    Santon3

    Too bad that would make my year

    0
  • Muz

    Jul 26, 2019 at 6:20 PM

    Comment #63

    As 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.

    0
  • geordietom

    Jul 26, 2019 at 6:20 PM

    Comment #64

    Reilly @ 53…

    Chameleon …

    0
  • jon

    Jul 26, 2019 at 6:21 PM

    Comment #65

    Not 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.

    😉

    🙂

    2
  • oldarse

    Jul 26, 2019 at 6:23 PM

    Comment #66

    Neil can someone email Rafa give him the news put a spring in his step mate

    3
  • Sports Direct FC

    Jul 26, 2019 at 6:23 PM

    Comment #67

    Muz

    Yeah, I kind of answered my question while writing it….majority shareholder.

    0
  • santon3

    Jul 26, 2019 at 6:24 PM

    Comment #68

    I don’t know how much % tax in belgium, if the tax demand is 674mil euro then how profit SD makes?

    1
  • geordietom

    Jul 26, 2019 at 6:24 PM

    Comment #69

    just a thought is that why Rafa left because he knew what was coming …

    0
  • santon3

    Jul 26, 2019 at 6:24 PM

    Comment #70

    how much profit SD makes?*

    0
  • oldarse

    Jul 26, 2019 at 6:26 PM

    Comment #71

    He did say not long ago his money tied up in business

    0
  • geordietom

    Jul 26, 2019 at 6:27 PM

    Comment #72

    Liverpool have put a price on Harry Wilson £ 25 million …

    2
  • Sports Direct FC

    Jul 26, 2019 at 6:28 PM

    Comment #73

    50 million for Longstaff might look pretty good to him right about now.

    1
  • toon22

    Jul 26, 2019 at 6:29 PM

    Comment #74

    Zippity doo darrr
    Zippity day

    My oh my what a ………

    2
  • It's on

    Jul 26, 2019 at 6:29 PM

    Comment #75

    As 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”

    4
  • Muz

    Jul 26, 2019 at 6:29 PM

    Comment #76

    Most 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!!

    7
  • Muz

    Jul 26, 2019 at 6:32 PM

    Comment #77

    HMRC 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.

    3
  • oldarse

    Jul 26, 2019 at 6:32 PM

    Comment #78

    And they say Ashley has a brilliant business BRAIN fkin hell he has

    0
  • It's on

    Jul 26, 2019 at 6:33 PM

    Comment #79

    The 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.

    0
  • oldarse

    Jul 26, 2019 at 6:35 PM

    Comment #80

    Bet he doesn’t need any drink tonight to spew into the fire place

    4


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