By Michael Hoppins
After Mike Ashley’s pathetic letter to the Department for Digital, Culture, Media and Sport (defending his running of NUFC), I had to get something off my chest.
Thousands of people – including, politicians, businessman, football experts, NUFC football fans (his customers) and professional football players – believe he is wrong and have aired those views publicly, but not Mike Ashley won’t have it. Let’s all guess who is right!
Wise men sometimes, but only sometimes, change their minds, fools never do!
Quote from Mike Ashley:
“Newcastle United must wipe its nose”
Newcastle United, in its last financial year, posted a £90m loss. This loss would have impacted negatively the financial aspect and value of Newcastle United which is up for sale.
Therefore, out of the TV revenue stream income that £90m loss was needed to balance the books in order to maintain the value of the club, thus leaving very little for the investment in players.
Many wealthy people like Mike Ashley strive in their lifetime to leave a legacy so they will be remembered positively. Mike Ashley is obsessed by P&L accounts, balance sheets, financial statements, and his own self-gratification. After his departure from this planet his legacy will be as one of the UK’s foremost Bigots. A legacy based on the way he manages several aspects of both his Sports Direct and Newcastle United businesses to the point where his has been mentioned in a bad light on many occasions in Parliament. What a wonderful legacy..
Mike Ashley started a business as a pioneer. He was the first in the sports industry who devised a very profitable strategy of trading that made him wealthy (great entrepreneurial achievement, so congratulations to him for that). He imported cheap products from overseas, stacking them high and selling at high margins. Autocratic, he paid below the going rate in wages, had cheap marketing, and kept expenditure to a very minimum.
Not an ideal business model for a football club as two recent relegations will confirm. Furthermore, it is the only business model he understands, so he certainly not a rounded businessman despite his huge success.
Yet despite this fantastic success, as he has stated himself he is not the most intelligent of individuals which is evident when on the odd occasion you hear him speak, it is probably why he keeps a low profile.
After Rafa’s recent passionate interview after the 4-0 defeat by Braga (when he demonstrated his passion to do well for NUFC) I can imagine Mike Ashley sat around with his hangers-on, drinking beer laughing at Rafa’s comments as if he had won a competition.
He had succeeded in frustrating Rafa. As he has no footballing knowledge, he would have found this interview funny. He has no passion other than money, and his strategy of gambling on staying in the Premier League with little expenditure had made its mark – as has his autocratic control!