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Mike Ashley -- Irrelevant Cunt


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“I have spoken to Derek (Llambias) a few times and he is positive and keen to help.

 

“He is still very hopeful that we can get promoted. He just said to continue doing my job, go and look at players and then we’ll have discussions.

“I have been for a look at some of Newcastle’s young players already.”

 

Can't see it doing any harm.

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So they're getting 7.5% profit on their sports merchandising, is that bad? Does it include certain startup costs?

 

The £4.8m from JJB is, as they state, over the term of the deal. Yet they're comparing it to one years' revenue received from SD, how does that equate to 8X?

 

I'm not saying that there isn't something dodgy going on but whoever put that together hasn't done a great job of setting out the facts clearly.

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Apologies, again is that revenue or pure profit? Sports Direct have taken over the running of their retails stores and in doing so have absorbed all the associated costs, something that JJB did not.

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The falling graph includes all commercial income with lapsed sponsorships and the free Sports Direct, Firetrap, Cruise etc advertising. I did reply to someone that the accounts don't make clear if the retail operation is more or less profitable for the club though. You'd think it's something the club would crow about in accounts.

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They're two separate, albeit connected, issues. The accounts contains only limited information although the club have stated that the merchandising arrangement is financially advantageous for NUFC. Then again they do continually claim to be trying to sell the advertising space in the ground so who knows what the truth is.

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Rangers set aside almost a million to pay Sports Direct in case of retail losses.

 

Doesn't suggest that the retail outsourcing is necessarily to the benefit of either club.

 

I really don't understand the part about having to purchase stock at higher than its resale value. Is there any explanation of what that actually entails? Could it be that the club has overestimated the demand for its shirts and they're required to purchase them from SD regardless?

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That's how the Rangers fans that tweeted me read it. I think you're always going to buy too much stock, and reduce the price before new strips come out though.

 

Wonder if NUFC have a similar "deal" in place with Sports Direct where we pay them £40 for every shirt they sell for £20.

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  • Andrew changed the title to Mike Ashley -- Irrelevant Cunt

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