News just in that pre-tax profits at Mike Ashley MASH Holdings have more than doubled from £256.4m to £542.6m for the financial year up to 30 April 2014.
(The previous year up to 30 April 2013 had seen the profits of Ashley’s shareholdings also double, from £130.6m up to £256.4m.)
The news has been broken by Drapers, the Fashion Business website.
Newcastle United is wholly within MASH Holdings and the part it plays in helping to create those huge £542.6m profits can’t be underestimated, via the free marketing and profile that the football club gives the Mike Ashley empire.
Only this headline profit figure is available at the moment but we will bring you more details as we get them.
We still await of course the Newcastle United accounts for 2013/14 being filed at Companies House when they will be available for the public to view, with only very limited figures/information released by the club so far at the end of March.
A profit for Newcastle United of only £18.7m shown after player trading when it was assumed they would be around £50m. The information released by the club giving no wages to turnover ratio and no explanation as to why costs had seemingly increased by almost £30m, or any other explanation as to what caused the profit figure to be significantly less than anticipated.
MASH Holdings is owned 100 per cent by Mike Ashley and the group profits before tax for the year up to April 2014 were £542.6m.
You may have wondered about the reference to ‘group structure’ in answer to a question previously asked at a past NUFC Fans Forum;
Question: If Mike Ashley is committed to owning the club, why doesn’t he just write the debt off?
Answer: The board explained that it would be an option that some clubs would consider, but from the perspective of our group structure there is a requirement to have debt within the structure.
When ‘Group Structure’ is talked about by Ashley and his employees at Newcastle United, it is this ‘MASH Holdings’ that they are referring to, where the Newcastle United owner has grouped together the football club and his brands/shareholdings. The reason for having that debt inside Newcastle United is because for business reasons it suits Mike Ashley, not any kind of goodness of his heart towards our club or the fans.
The following explanation on ownership appears on the Newcastle United official website;
Newcastle United Limited is the company which owns Newcastle United Football Club. The ultimate parent company of Newcastle United is MASH Holdings Limited and the ultimate controlling party of MASH Holdings Limited is Mike Ashley.