{"id":7487,"date":"2019-02-13T14:29:09","date_gmt":"2019-02-13T14:29:09","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/profits-slide-at-mike-ashleys-business\/"},"modified":"2019-02-13T14:29:09","modified_gmt":"2019-02-13T14:29:09","slug":"profits-slide-at-mike-ashleys-business","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/profits-slide-at-mike-ashleys-business\/","title":{"rendered":"Profits slide at Mike Ashley&#8217;s business"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape has-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Mike Ashley wears a Newcastle scarf at a club game\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/6995\/production\/_88892072_88892071.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    Mike Ashley owns Newcastle United<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p class=\"story-body__introduction\">Profits at Mike Ashley&#8217;s private company dropped in 2017 when Sports Direct was hit by the fall in the value of the pound and Newcastle United&#8217;s revenue slumped.<\/p>\n<p>Mash Holdings&#8217; accounts for the financial year to end-April 2017, show profits fell to \u00a3102.5m from \u00a3227.7m.<\/p>\n<p>They show the Sports Direct founder <a href=\"https:\/\/www.bbc.co.uk\/sport\/football\/46433669\" class=\"story-body__link\">is still seeking a buyer for Newcastle United<\/a>, which he has owned since 2007.<\/p>\n<p>The cost of using the company jet and helicopter is put at \u00a3700,000.<\/p>\n<p>Matchday hospitality for his family is valued at \u00a378,000, down from \u00a3101,000 the previous year.<\/p>\n<p>Turnover at Newcastle United fell to \u00a391.8m from \u00a3131.1m while operating expenses increased by \u00a344.3.m to \u00a3140.8m. <\/p>\n<p>Loans to the club from Mr Ashley were \u00a3144m and the accounts state that &#8220;in October 2017, owner Mike Ashley decided to put the club up for sale&#8221;.<\/p>\n<p>&#8220;The club will have challenges to face as it looks forward to the 2018\/19 season back in the Premier League,&#8221; the accounts add.<\/p>\n<p>Some land next to the club has been sold for \u00a39m.<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45140874\" class=\"story-body__link\">House of Fraser bought by Sports Direct for \u00a390m<\/a><\/li>\n<li class=\"story-body__list-item\">S<a href=\"https:\/\/www.bbc.co.uk\/news\/business-46037259\" class=\"story-body__link\">ports Direct to close Evans Cycles stores in rescue deal<\/a>\n<\/li>\n<\/ul>\n<p>Sports Direct, which is listed on the stock market, has already published results for the period covered in Mash Holding&#8217;s accounts, which described the &#8220;currency headwinds&#8221; and &#8220;strategic challenges&#8221; in continental Europe as impacting performance.<\/p>\n<p>The leisure retailer has traded &#8220;in line with management expectations&#8221; since the end of April 2017.<\/p>\n<p>For the 12 months covered by the Mash Holdings accounts, revenue rose by 11.7% to \u00a33.2bn but margins were hit by the fall in the pound following the EU referendum and an increase in provisions for stock no longer in fashion in a &#8220;fast changing market and supply chain&#8221;.<\/p>\n<p>Mash Holdings also said Sports Direct can get access to loans of up to \u00a3907.5m which could go up to \u00a31bn.<\/p>\n<p>The business has also taken over House of Fraser for \u00a390m and bought Evans Cycles for \u00a38m.<\/p>\n<p>Mr Ashley has also <a href=\"https:\/\/www.bbc.co.uk\/news\/business-47127520\" class=\"story-body__link\">failed to take over music retailer HMV<\/a> and<a href=\"https:\/\/www.bbc.co.uk\/news\/business-47192922\" class=\"story-body__link\"> pulled out of the bidding for Patisserie Valerie<\/a>.<\/p>\n<p>&#8220;The Group continues to seek out profitable investments and development projects,&#8221; the accounts, which list more than 400 subsidiaries, said.<\/p>\n<p>They also discuss family connections.  In 2017 S<a href=\"https:\/\/www.bbc.co.uk\/news\/business-42336413\" class=\"story-body__link\">ports Direct shareholders rejected a proposed \u00a311m payment to the Mr Ashley&#8217;s brother, John<\/a>, and these accounts say that the contract with his business Barlin is &#8220;no longer in place&#8221;.<\/p>\n<p>But a business controlled by  Michael Murray, the fiance of one of Mr Ashley&#8217;s daughters, continues to provide &#8220;property consultancy services&#8221; to Sports Direct.<\/p>\n<p>The accounts also show that the company has looked at the role of Justin Barnes,  a director of ISBL Consultancy which has a &#8220;commercial relationship&#8221; with Sports Direct.  This was deemed to be an &#8220;advisory capacity&#8221; role and not one involving any management function, the accounts state.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-47227079\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images Image caption Mike Ashley owns Newcastle United Profits at Mike Ashley&#8217;s private company dropped in 2017 when Sports Direct was hit by the fall in the value of the pound and Newcastle United&#8217;s revenue slumped. Mash Holdings&#8217; accounts for the financial year to end-April 2017, show profits fell to \u00a3102.5m from &hellip; <\/p>\n","protected":false},"author":0,"featured_media":7488,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7487"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7488"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}