If Mike Ashley Also Owned Umbro…
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.
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…..
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