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This Is The Profit Mike Ashley Will Make On Newcastle



The Newcastle United accounts for the financial year 2018-2019 show that the club owed the owner £111M from interest-free loans Mike Ashley has given the club over his 13 years at the helm.

The Ashley era is one of the worst periods in Newcastle’s long history, and we have been relegated twice from the Premier League in that time, the only times we have ever dropped out of the Premier League.

It’s interesting that in the previous year, the club owed him £144M, so that’s dropped from July 1, 2018, to June 30, 2019, by £33M.

Since at the time, Ashley had the club up for sale, that would amount to another £33M profit for the owner when and if the club was sold.

It has almost been sold now, and since Ashley (shown above) spent an initial £134M to buy the shares of the club from Sir John Hall, Freddie Shepherd, and others back in May 2007, he has a total investment of about £245M in Newcastle.

So that’s about a profit of around £55M – roughly – assuming the club is sold for £300M.

This is how the report reads on the loans from Mr. Ashley as reported in the Chronicle:

“Mr MJW Ashley and companies under his control continued to provide loan facilities to the group during the year.

“The total balance outstanding at 30 June 2019 was £111M (2018, £144M).

“The maximum amount outstanding during the year was £144M (2018, £154M).

“No interest was payable for either the current or prior year.”

So a total of £43M in loans were paid off to Mr. Ashley in the two years from July 1, 2017, through June 30 of last year.

It also appears that £1.1M came in as revenue from Frasers Group last year – formerly Sports Direct.

So that’s the amount he probably paid for the advertising at the ground.

Yes – for the Sports Direct stuff that’s all over the place, and if that’s true, it’s peanuts, as we suspected it would be.

The club made a profit of £34.7M for the financial year ending June 30, 2019.

And that’s almost double the profit of £18.6M made in the previous year.

So Newcastle made decent profits in the first two years back to the Premier League, with Rafa Benitez the manager.

Those profits will help the new owners with the Financial Fair Play (FFP) rules since they will need to spend big money on improving the team in the next few years.

They can spend any amount on infrastructure and youth development since that does not count towards expenditures for FFP.

We’re sure the fans would have liked Ashley to spend more money to improve the team in those first two years back to England’s top division, where we were fighting against relegation, and Rafa didn’t get the support he was promised.

That’s been Ashley’s big failing over 13 years – he’s been more concerned about the financial accounts than what the team is like on the pitch.

Sad.

Hopefully, it will not last much longer.

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Comments welcome.


31 comments so far

  • the Northumbrian

    May 30, 2020 at 9:56 AM

    Comment #1

    Hopefully 1st

    0
  • the Northumbrian

    May 30, 2020 at 9:57 AM

    Comment #2

    ED er proft??

    0
  • Toonboy_84

    May 30, 2020 at 10:03 AM

    Comment #3

    A million for advertising??

    Barely covered the canteen ladies wages

    3
  • IrishRob

    May 30, 2020 at 10:04 AM

    Comment #4

    Hibbit I dont brag about my I.Q or tried to wind people up on here for a very long time, but people luke you seem obsessed with constantly bringing it up. Do you ever let anything go? Or would you just rather I go back to the way I was so you can have your excuse to talk sht about me all the while pretending you’re done angel.

    3
  • IrishRob

    May 30, 2020 at 10:05 AM

    Comment #5

    Some angel*

    0
  • The ledge

    May 30, 2020 at 10:14 AM

    Comment #6

    More flapping today I see
    The sun is shining.
    We are alive.
    The club is about to be bought.
    Chill everyone be happy .
    I had heart attack on Monday night
    Stints fitted Wednesday in the mather private in dublin .
    I’m still kicking so everyone just chill life way to short

    37
  • Jail for Ashley

    May 30, 2020 at 10:14 AM

    Comment #7

    Whoa whoa whoa ToF, steady on a minute. Where have I said I don’t like the night shift. I very rarely skip posts but have the last few nights, part shite wi fi, part the lack of news leaving not much to talk about at all. I’ve got nothing against anyone who posts on it, to suggest otherwise is underhand and the work of a bouncer and a cad.

    1
  • the white tino

    May 30, 2020 at 10:15 AM

    Comment #8

    See the fence jumping, jellyfish now has a holier than thou attitude. What a tit

    8
  • Jail for Ashley

    May 30, 2020 at 10:15 AM

    Comment #9

    The ledge,
    Jesus.H.Christos mate, I’m glad you’re ok, hope you can still have #cans in time for the takeover.

    6
  • check the toastie

    May 30, 2020 at 10:16 AM

    Comment #10

    Bad news Ledge, best of luck on your recovery, club sold shortly and every black cloud will disappear

    3
  • Sherlock

    May 30, 2020 at 10:18 AM

    Comment #11

    Aye I second that from jail. Life way more important than footie. Glad to here you recovering. For your own sake I would keep away from here mate

    6
  • IrishRob

    May 30, 2020 at 10:19 AM

    Comment #12

    Ledge, you had a heart attack seriously?

    0
  • The ledge

    May 30, 2020 at 10:21 AM

    Comment #13

    Thanks lads .its a bit scary at 40 but sur I’m still here so I have a lot to be thankful for .
    Unfortunately jail no more#cans #spliffs for me .
    But I will be the happiest man in the world when we we are sold .
    Keep smiling lads life is just too flipping short

    12
  • IrishRob

    May 30, 2020 at 10:21 AM

    Comment #14

    Twt I’m convinced I know who you are now!

    1
  • The ledge

    May 30, 2020 at 10:21 AM

    Comment #15

    aye Rob not something I’d be joking about pal .

    3
  • Kevin Vegan

    May 30, 2020 at 10:22 AM

    Comment #16

    The Ledge,

    Sounds like a rough ride fella. Glad to hear it didn’t get the better of you. Absolutely right, life is too short. Wishing you a speedy recovery so you can get on with enjoying yours 🙂

    2
  • hibbit

    May 30, 2020 at 10:23 AM

    Comment #17

    The ledge,
    well done mate stay strong more good news is just around the corner 😀

    4
  • The ledge

    May 30, 2020 at 10:25 AM

    Comment #18

    True Sherlock the blood pressure machine in the hospital went quite high when reading comments in here .
    But it the one thing I won’t be giving up is reading this blog it been part of my life for to long .

    3
  • The ledge

    May 30, 2020 at 10:26 AM

    Comment #19

    Oh it coming hibbit I wasn’t dying with Ashley owning us feck that .

    2
  • IrishRob

    May 30, 2020 at 10:26 AM

    Comment #20

    I hope you dont mind me asking, what were your symptoms or what was it like? Do you eat good or bad? This is the kind of information people need to hear. Delighted you’re on the mend pal!

    2
  • Jib

    May 30, 2020 at 10:26 AM

    Comment #21

    a bouncer and a cad

    Ha ha ha

    3
  • the white tino

    May 30, 2020 at 10:28 AM

    Comment #22

    Irish nob you realised I was on about you then, and I have never posted under any other name, as I’ve said on numerous occasions, it’s just that you come across as a sad attention seeking fence jumper and I realised that straight away

    3
  • the crown princes nashers

    May 30, 2020 at 10:29 AM

    Comment #23

    The ledge

    bugger these a shock and a half recover well, rest up

    2
  • IrishRob

    May 30, 2020 at 10:31 AM

    Comment #24

    You definitely have Twt, but like Hibbit I’ll leave it there 😉

    1
  • The ledge

    May 30, 2020 at 10:33 AM

    Comment #25

    rob I taugh it was acid reflux .
    Felt a bad burning in chest pains in both arms and then spent 45 min fighting to stand with pain that felt like a hot drill going into me chest while waiting for an ambulance.
    I’m a very big lad eat well the missus had me on a diet I taught it was what she was feeding me was giving me reflux .
    I be fairly active but unfortunately its in my family.

    2
  • the white tino

    May 30, 2020 at 10:37 AM

    Comment #26

    Irish nob I’ve never ever posted under any other name, and never will, so you have your wires well and truly crossed dickhead

    0
  • onmeedsun

    May 30, 2020 at 10:42 AM

    Comment #27

    Ledge, the stents will have fixed your ticker so I’m sure you’ll be fine, although anything to do with the heart is unsettling. I have irregular beats caused by a gene, but not bad enough to need a defibrillator fitted. It’s similar to Fabrice Muamba and James Taylor the cricketer. It gives you a sharp focus on what’s important and that includes a change in our ownership. We’ve already waited too long and many have passed away waiting for something good to happen to our club. I pray desperately that this deal goes through and we see our club compete again and fans embrace every aspect of the club like we used to under Kev and Bobby, the smiling faces return and the bickering stops. This is our time!

    4
  • onmeedsun

    May 30, 2020 at 10:54 AM

    Comment #28

    Ashley decided in year 1 that he wasn’t going to invest in the club to drive up commercial revenues. Without growth in commercial revenue you can’t really compete with the top 6. So the single strategy became stay in league with no investment from him (we just had the cash the club generated) and provide free advertising for his tat empire. Of course this flat line strategy will always lead to periodic relegations. Our 2 have cost us about £200m which the club have had to fund, hence every time we were promoted there was nothing to invest in the squad. Without Rafa’s miracle working we’d have gone straight back down. That £200m could have been invested in infrastructure and squad. When we finished 5th we bought Anita. That’s when he he missed the opportunity to cement our place in top 6. The new owners will invest but they will also be looking to drive up that commercial income. City did it so why can’t we. Happy days ahead, if it goes through.

    1
  • IrishRob

    May 30, 2020 at 10:57 AM

    Comment #29

    The ledge, that’s very appreciated, that kind of info is very important for people to hear. I would suggest to look into a Ketogenic diet, or discuss it with your Dr, you will be amazed at the health benefits. One of the Drs in my place is a big proponent of intermittent fasting I dont know a lot about it but I imagine it is strictly for loosing weight and doesnt carry the same health benefits of the ketogenic diet. That diet will clean out your arteries in the space of a year, it will get your cholesterol and triglycerides right down . I cant say enough good things about it, however it’s very hard to get into the routine of it. And get used to eating so much meat and vegetables, the absolute worst part is that EVERYTHING you consume you kind of have to make from scratch as there is very little food on the market that has both no sugar and very low carbs which is what keto is, no sugar, very low carbs.

    0
  • IrishRob

    May 30, 2020 at 10:59 AM

    Comment #30

    Twt no I dont. But continue the name calling by all means, seems your the type to resort to those kind of tactics.

    I’ll pray for your lost soul.

    #PrayForTwt

    1
  • Unused Substitute

    May 30, 2020 at 11:39 AM

    Comment #31

    Repost:
    RE FA taking a pop @ SA, this happens all the time in the industry; one tries to sue the other hoping for a payout. FA could be in the hole for hundreds of millions of €’s depending on how this CoViD thing pans out. No wonder they’d try to make some extra bucks right now especially to cover for uncertainties going forward. I doubt whether that action has anything to do with the takeover process.

    1


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