Mike Ashley sees profits fall by 94% – There is a God
Mike Ashley is putting Newcastle United fans through yet another close season of misery.
Not one positive for NUFC supporters to help them look forward to the new season, the only Premier League club yet to make any signings and now 58 days into the transfer window, only just over a week until the big kick-off.
As well as that bigger picture, Mike Ashley has also treated the Newcastle fans with total contempt, refusing to allow any acceptable level of communication from club to supporters.
To this backdrop, nobody could possibly blame Newcastle United fans when they smile / laugh at this Thursday morning update on Ashley’s wider business interests.
Frasers Group having revealed that the pre-tax profits collapsed by 94.1% to £8.5m for the year to 25 April 2021, compared to £143.5m the previous year.
Along with that shock to the system for the NUFC owner, Mike Ashley suggesting that the bad news may not be at an end for his main Frasers Group business:
“The group is continuing to invest in its physical and digital elevation strategy and our omni-channel offering is growing in strength.
“Our stores in the UK have reopened above expectations and our online channel continues to significantly outperform pre-COVID-19 periods.
“Nonetheless, management remains of the view that there is a high risk of future COVID-19 pandemic restrictions, likely to be over this winter and maybe beyond.”
Mike Ashley has no choice but to make this Frasers Group financial update public, giving the info that takes things up to just over three months ago (late April 2021).
This is in sharp contrast to his football club, Mike Ashley still refusing to release the Newcastle United accounts from two seasons ago (2019/20), meaning that the entire time of Steve Bruce’s reign as NUFC Head Coach there has not been any financial details released by Ashley / the club.
Mike Ashley has also confirmed that as from next year, he will no longer be chief executive of Frasers Group next year, though he will still remain on the board as an executive director.
Michael Murray will instead carry the title of Frasers Group Chief Executive, the 31 year old is engaged to Ashley’s daughter Anna.
Frasers Group stating:
“The group’s elevation strategy is transforming the business and receiving positive feedback from consumers and our brand partners, especially on projects such as the new Oxford Street Sports Direct which opened in June 2021.
“The board consider it appropriate that Michael [Murray] leads us forward on this increasingly successful elevation journey.
“It is currently proposed that Michael Murray will assume the role of CEO on 1 May 2022.”
Only the truly hopeless naive cases will believe that in reality anything changes at Frasers Group, when you own two thirds of the business it is obvious who will continue to make all the important decisions moving forward.
If you think Michael Murray will now be the main decision maker at Frasers, no doubt you also believe that Lee Charnley is allowed to make decisions beyond how many paper clips to order at Newcastle United…
Hopefully the dramatic fall in Frasers Group profits doesn’t impact on the ‘fortunes’ Mike Ashley has them pay NUFC for the massive worldwide promotion they get via Newcastle United.
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