Mike Ashley On Verge Of Promotion To Elite As Newcastle United Head To….
While this summer has seen every one of Newcastle United’s competitors strengthen their position, our club has been the only one in the entire Premier League to not buy a single player and the outlook is bleak for a team that just avoided relegation last season.
Shares in Sports Direct have climbed another 13p to 650p, making its market value over £3.8billion, the result of this is that Sports Direct is now odds-on to join the elite FTSE Index next month – the final stamp of approval that Ashley’s business empire has truly arrived.
In 2007 the company was floated at £3 (per share) and Ashley used some of the £900m he pocketed to buy Newcastle United.
The following year the shares collapsed to 33p, which coincidentally saw the kicking off of our relegation season.
While his SD empire has seen those 33p shares rocket to 650p and everything looking buoyant, Newcastle United have led an up and down existence, with the position now that things are looking desperate through a lack of investment in goods (players).
Ashley’s ruthless business dealings with his rivals, and over 90% of his staff who are on zero hour contracts with no guaranteed work or holiday/sick play, has been a formula for spectacular results on the pitch (sporting goods market).
In contrast, Newcastle United are at the moment looking a bit like one of Ashley’s sports chain rivals that have been battered into submission, with ‘For Sale’ signs up and a smell of decay surrounding St.James’ Park.
Interestingly, SD’s online sales have grown at 130% per annum over the last three years and now account for over 15% of total sales. This period coinciding with the Sports Direct brand given massive (free) exposure thanks to free advertising all around St.James’ Park to a worldwide TV audience and of course the infamous stadium renaming shenanigans.
Has Newcastle United now served its purpose and continued to be run down and eventually sold off when every last drop has been squeezed from it?
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