Mike Ashley ‘Set To Inflict More Pain’
The latest set of financial figures will be published and what a job he is doing on the opposition, as The Scotsman put it;
‘Sports Direct is set to inflict more pain on rival JJB Sports on Thursday when it reveals buoyant trading in the run-up to the Olympics.
Its figures will be in contrast to rival JJB, which recently issued a profit warning after saying it had failed to gain the boost it expected from the Euro 2012 championships.
The City expects Sports Direct’s underlying earnings to rise 15.5 per cent to £231 million in the year to April, on revenues up 10 per cent to £1.8 billion.
The strong performance would mean the chain has hit an earnings target of £225m for the year, putting executive chairman and Newcastle United owner Mike Ashley on track to receive eight million shares – currently worth around £24m’.
His retail empire’s performance is top notch and in these austere times, SD’s competitive pricing structure seems certain only to ensure their continued success.
On of my biggest worries has always been that Ashley simply hasn’t got the time to devote to Newcastle United and without a highly experienced substantial high powered team to run the club in his absence, we are always going to struggle commercially to really compete at the top end.
Purely in terms of the money involved, it is hard to argue that Ashley should be spending more time on Newcastle United at the expense of Sports Direct, especially when the retail group’s turnover is well on the way to dwarfing NUFC’s by something like twenty to one.
Football is so important to us that in terms of purely business (and it is rammed down our throats so frequently how football is a ‘business’ these days) it is easy to forget that while the sport is vital in a cultural sense, in terms of the money involved it is small beer.
Taking the Premier League as a whole, the total income of all twenty clubs in the 2010/11 season was £2.27Billion, which just shaded Sports Direct’s predicted £1.8 Billion, and as for profit….£68m in the Premier League doesn’t exactly equate to the expected SD profits of £231m.
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