How Outsiders See Mike Ashley’s Use Of NUFC
You may have seen recently how Mike Ashley was due a bonus worth approximately £26m in shares from Sports Direct, only for the shareholders to vote against it. Ashley owning 71% of the company but not allowed a vote on this proposal.
The very well respected Reuters News Agency reported the news as follows;
LONDON, Sept 5 (Reuters) – Shareholders in Sports Direct , Britain’s biggest sporting goods retailer, have rejected a proposal that could have netted Mike Ashley, its billionaire founder, a one-off shares bonus worth about 26 million pounds ($41.4 million) at current prices.
Ashley holds 71 percent of Sports Direct’s equity and is executive deputy chairman. He does not take a salary and generates significant free advertising for the company through his ownership of English Premier League soccer club Newcastle United.
For those Newcastle fans who think it is fair enough that Mike uses St.James’ Park as a personal advertising hoarding which doesn’t generate a penny for team strengthening, it appears that those in financial circles see it as a massive factor in Ashley’s favour…if not Newcastle United’s.
Ashley’s bonus was knocked back despite SD posting a 25% jump in first quarter sales and shares moving up over 3% to 324.1 pence, valuing Sports Direct at £1.92Billion, making Ashley’s 71% share worth the best part of one and a half billion.
The further good news for Mike Ashley, as well as all the free advertising at St.James’ Park, is that Sports Direct executives are expected to come back with an alternative set of proposals to reward Ashley for the company’s performance.
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