Mike Ashley takes hammering thanks to Brexit
The Newcastle United owner Mike Ashley has taken a bit of a hammering due to the Brexit vote.
Predicted by many to have a dramatic impact on the economy, business and the exchange rate, Thursday’s vote has certainly delivered.
On Friday the FTSE 100 dropped dramatically as the Leave result was announced before the London Stock Exchange opened, then recovered later so that by the end of the day it showed a drop from 6338.10 to 6138.69, a fall of some 3%.
However, Mike Ashley and his Sports Direct retail empire took a real hiding, the SD share price fell instantly from 387.50 to 282.80 as soon as the markets opened, a drop of some 27%.
It did recover to an extent but finished Friday on 321.92, which represented a 17% fall on the day and it took the share price to its lowest mark for almost four years.
When it comes to Newcastle United and their transfer activity this summer, Mike Ashley could also end up a big loser here due to Brexit.
The exchange rate between the pound and the euro saw a dramatic change, at the start of Friday you got 1.3091 euros for each pound, then at the end of business that had become 1.23 euros for each pound. Basically meaning you get 6% less euros for your sterling if you go on holiday.
At this moment in time, it could mean that if Newcastle are trading with Eurozone countries on transfers, they would receive 6% less cash than if the deals were done last Thursday, whilst any purchases would work out around 6% more expensive from clubs where euros is the currency.
Monday morning will be interesting for all of us to see whether the stock market and exchange rates can bounce back – with Mike Ashley a particularly interested spectator.
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