Newsletter

Get your daily update and weekly newsletter by signing up today!

News

If Mike Ashley Also Owned Umbro…

7 years ago
Share

The Umbro brand is up for grabs and Mike Ashley looks as though he will be in pole position to add it to his collection, Newcastle United of course wore Umbro strips right through from 1980-1993.

This is how the Telegraph reported on Nike putting the brand up for sale;

Nike has put the iconic British brand up for sale less then five years after buying it for £285m and Sports Direct – which held a 30pc stake in Umbro before it fell into Nike’s hands in 2007 – is expected to join the running.

A spokesman for Sports Direct declined to comment but one source close to Mr Ashley said there was “logic” in adding Umbro to the retailer’s kit bag.

Manchester-based Umbro has failed to perform for Nike and revenues at the British company dipped last year to $224m (£148m), compared with $276m in 2006.

Nike, the world’s biggest sportswear company, wrote down the value of its investment in the kit-maker in 2009 by $240m. The US giant said last year that projected future cash flows at Umbro “had fallen below the levels we expected at the time of the acquisition”.

As most of you will be aware, Umbro manufacture the England strip and Mike Ashley sells more England strips than everybody else put together.

So picking up Umbro would mean that as well as selling most of the England strips he’d also be manufacturing them all as well. More to the point of course is that he’d be making the profit from manufacturing them as well as retailing them through Sports Direct. His business which of course at the moment benefits from free advertising at St.James’ Park.

Talking about having it all sealed up!

It is often dangerous to add two and two, though it does very occasionally add up to four.

Puma and Newcastle United recently confirmed an extension of their deal but with no confirmation for how long.

Now then, if Mike Ashley also owned Umbro…..

 

Share

If you would like to feature on The Mag, submit your article to [email protected]

Have your say

© 2019 The Mag. All Rights Reserved. Design & Build by Mediaworks