Mike Ashley Records Record Profits
Sports Direct which is majority owned by our leader has announced record profits, partly on the back of the London Olympics & Paralympics.
The half year revenues went up by 22.5% to over £1billion and the pre-tax profits went up by a quarter to £125.2million in the 6 months ending 28th October.
The chief executive Dave Forsey said;
“There’s no doubt that Team GB’s outstanding performance has helped awareness and popularity of sport across the UK and that we have maintained our position as the consumers’ champion”.
Sports Direct are said to be in line to meet its earnings target for the year of £270million, which would mean the staff bonus scheme would be paying out again, after recently paying out £15,000 in shares to each of 1,750 employees.
I think it’s great that we have a British success story in these times of recession, whether it is owned by Mike Ashley or not.
However, as a Newcastle fan I do think that Ashley has badly handled one part of his business empire in the past six months and the refusal to back Alan Pardew in the summer transfer market has not only been bad for the team/squad but also a bad business move.
Mike Ashley might see Newcastle United simply staying in the Premier League as equalling success, due to the ever increasing riches, especially from broadcasting deals.
However, as both he and some of our more naive fans are finding out, just because a team flies up to fifth in the league gives you no guarantees for the following season.
A failure to invest has created a real mess from what was a core of players who showed real promise as a group…or should that simply be – failure in reinvesting the money he has made recently from Newcastle United, with a profit of over £32million in the last available accounts thanks to Andy Carroll’s sale to Liverpool. Then no nett spending in the summer, taking both transfers and wages into consideration, even after last season’s success both on and off the pitch.
I’m not even going to get into all the free Sports Direct advertising at St.James’ Park….but one thing is for sure, it won’t be of quite so much benefit to Mike Ashley if we are looking at it in the Championship.
Send in your letters/articles to [email protected]
The new Christmas issue of The Mag available now in all Tyneside newsagents, or buy a single copy and subscriptions in our online shop, or get a Gift Subscription with free personalised letter for the person you love (or ask for one for yourself!).
If you would like to feature on The Mag, submit your article to [email protected]