Sunday 4 September 2011

Mike Ashley Ate My Hamster*

As we all know football began in the 1992-1993 season with the advent of the Premier League. Before then football was a barren wasteland, full of hooliganism and bad behaviour, of talentless cloggers who prevented the emergence of “tiki taka” football the likes of Arsenal and Barca now bless us with. Players drank their way through the season rather than training and observing foreign professional standards in terms of diet and application. Crowds were low and inhabited dark, foreboding terraces that were unsafe in every way. Football was no place for families, women or children and racism was rife. The viewing experience is now vastly superior. Stadiums, no longer described as grounds, are now the best we’ve ever had, we’re told. We get to watch the “best league in the world” and have some of the best footballers on the globe representing the highly successful England national team. Except England, in major tournaments, are generally awful; a lot of clubs play in soulless, flat-pack stadiums that see supporters ejected for daring to stand in front of their seat and create an atmosphere; football is a sanitised marketers paradise where a glossy image is created for global consumption; where away support is marginalised and isolated in the pokiest corners of grounds away from the cameras; where games are rescheduled to suit the needs of international tv audiences the excuse being that we get to see the overpaid and over hyped best players in the world for this gross inconvenience; where prices rocket year on year despite the product or service not improving; where clubs accrue millions of millions in debt as footballers, directors and managers are paid whilst local businesses go to the wall as clubs are saved, immune to the rules of their own market ethos; violence and racism are still visible but its Johnny foreigner in Spain and Bulgaria who has the real problem. My point? No picture, no view of the present or history is ever that clear cut, different perspectives create and fit different narratives, different stories that the teller wants to get across are emphasised with a selective view of the facts. Things aren’t really better are they? They’re just different.

In Newcastle Mike Ashley and his acolytes are currently causing no amount of disquiet over the running of the football club. In truth, he’s been a divisive figure since the acrimonious split with former manager and club legend Kevin Keegan, his own appointment. The owner and the Chairman, installed in 2008, Derek Llambias have been derided for their personal behaviour and the policies the club has pursued, particularly in terms of recruitment and retention of players. Now every move, every (rare) public utterance or action of either man is immediately met with outrage, often venomous, appearances engender similar reactions such as the reported reception Llambias received at the friendly match with Darlington, a farce for many reasons. The list of perceived grievances are many; sacking Keegan; appointing Wise, Jimenez & Vetere and showing loyalty to the former; buying and loaning certain players for questionable reasons; selling Milner; appointing Joe Kinnear; selling Nzogbia & Given; sacking Hughton; selling Carroll without a replacement; leaving the squad paper thin in certain areas; failing to communicate with the supporters since the departure of Chris Mort as Chairman, I could go on but you get the picture if you didn’t know it already. However the ongoing reaction to Ashley and the policies the football club he owns confuses and confounds me in many ways because it seems to ignore certain key facts as well as appear deeply contradictory. I look at the mistakes he has made but struggle to reconcile them with the outpouring of venom and even reasoned disagreement. I look at the paucity of alternatives to the Ashley plan and don’t wonder if a re-conceptualisation of the club strategy is required even if the man himself remains anathema to many.

You will get no argument from me that, in my opinion, the supporters of Newcastle United deserve a greater level of communication from the club in terms of its strategies and plans into the future. Some clear outlining of what the owner foresees the future to be, what aims and goals we want the team to achieve, would go a long way to resolving the concerns of many; it may even reduce the level of bile towards the man himself. I similarly agree with many who complain the decisions made in the first three years of Ashley’s ownership proved disastrous for the football club and that many of the problems we have encountered were brought on the owner by him and him alone. However constantly revisiting what has happened in the past is not healthy or productive and this is where I disagree with many of my fellow supporters. Nobody gets everything right; learning from your mistakes is the key.

The accounts of Newcastle United are something of a mystery, the club has a tendency to compile the figures and release them to the public some time after the end of the financial year although I claim no expertise in this field. As such the 2010-2011 accounts are still outstanding and are likely to be for some time. To the end of the financial year 30 June 2010 NUFC made an operating loss of £33.5 million, as opposed to £37.7 million in the year that preceded it (figures from NUFC website). Overall losses after player trading is taken into consideration are cut across both periods to £17.1 and £15.2 million respectively but it’s clear that in terms of income and expenditure the club continues to function due to the largesse of the owner. In simple terms, whoever owned the club would have to be prepared to stump up large amounts of cash to keep it running at its present level or take out loans with significant interest rates as was previously the case.

That is not to excuse relegation or to agree with every decision made by the owner or his executives. Income from match day revenue rose, gate receipts improved, and NUFC maintained the fourth highest football attendance in England whilst in the Championship. It’s true that income fell due to relegation but looking at the Swiss Ramble’s excellent assesment of the finances of NUFC the club has not been profitable for some time “The last time Newcastle made a profit was back in 2005 – and that was a very small one of £620,000. Since then, the club has registered pre-tax losses of £12 million in 2006, £34 million in 2007, £20 million in 2008 and £15 million in 2009”. Whilst the Swiss Ramble point out that the mix of revenue is good at NUFC the club is still reliant on TV money and cannot compete with clubs who qualify for the Champions League, our position as competitors for top four places being lost under the ownership of Hall/Shepherd. In fact balancing the books, reducing wages and relying on loans from Ashley can be said to have saved NUFC from a perilous financial position, loans at interest rates of 11.72% were secured by Shepherd and this was not something that could continue, banks are not keen to refinance debt at football clubs anymore as the situation at other teams in the Premier League shows. In short, neglecting due diligence may have been a mistake but in my opinion Ashley has turned around that situation by putting his own money into the club to keep it running. It may be hard to palate for some, but he deserves credit for that.

The mistake of Ashley and his charges appears to me to have been walking blindly into football and trying to implement ill conceived changes whilst seemingly trying to figure out what they were going to do. A number of appointments in key roles, and I include Kevin Keegan and Alan Shearer, were in my opinion massive errors that were badly handled and resolved. But I think the man has learned from these errors. I was as shocked and appalled at the treatment of Chris Hughton as anybody else at the time of his dismissal but Hughton was not a great manager; he was a good man who did a good job. This is a ruthless results driven business with no permanence in terms of employment contracts, you can be dispensed with at a moment’s notice, at least you get paid off. Whilst Hughton could feel aggrieved at the manner of his being dispatched he knew who he was working for when he took on the role and he knew the terms of his contract. He knew that Shearer and Keegan had been dispensed with clinically. We’ve adopted a much more palatable style since Hughton left with a progressive approach built around passing players, with pace in the side, that is surely much more preferable than Hughton’s hit Carroll and Nolan might get the knock downs style. All of the outpouring of anger at the departure of Nolan ignores the fact that many, me included, doubted he could hack it in the Premier League last season with his lack of pace and that we feared relegation.

Similarly all of the supporters who condemn Ashley for failing to make significant investment in the transfer market are no doubt the same people who looked upon the performance and wages of Owen, Duff, Geremi et al with disdain as I did. However, spending millions on players has proved a busted flush in the past. The new strategy of recruiting hungry, young, promising talent from across Europe, of building a youth system from which Vuckic, Ferguson, Krul and others are emerging is far more promising than the boom and bust policy of Ashley’s predecessors or the early part of his ownership. Is it not time that we gave this methodology a chance? Had we signed Brian Ruiz, if indeed there ever was any bid, for £10 million would it have solved any problems or potentially created another Luque or Xisco situation? I like caution. I like that we won’t be taken for mugs in the transfer market anymore paying the loyalty bonuses of players like Joey Barton as component parts of transfer fees, as well as tremendous wages that judging by past performances don’t represent value for money. What benefit have we had from offering or extending significant contracts of ageing players in the past? Butt, Carr, Viduka, Geremi, Cacapa, Owen were all at NUFC far too long for me, or should never have been recruited in the first place. We should be making money out of Kevin Nolans at appropriate points, it’s what successful clubs like Arsenal (Henry) and Man United (Van Nistelrooy, Beckham) do. Who really believes that Nolan will be scoring 12 Premier League goals in three years time earning £50k plus a week or that Barton will have five good seasons looking at his recent history?

Buying Tiotes, Ben Arfas and Cabayes is an eminently more sensible approach. To those who argue we will certainly sell them on if they perform, well that is how football works, especially when you look at our finances. Andy Cole left, Les Ferdinand too when good offers came in. What is different now from the past? Not all players will stick around as Shearer has, it’s not realistic. Andy Carroll left NUFC because Liverpool agreed to pay an amount of money that even in the context of modern football was obscene, he’s no more a £35 million footballer than I am a £5 million player, and then I can point back to those club finances again. Did we have any choice? Why should our football club not be ran as any other business is, with balanced books? Would we rather caution was thrown to the wind and more debt accrued? Look at what happened to other clubs who maxed out their credit cards, Leeds, Sheffield Wednesday, Bradford City and now maybe Everton. It’s no guarantee of success. Players and agents are well aware of the tricky relationship between club and supporters and I don’t doubt that in specific instances the loyalty of fans is used to protect the image of players as they move for bigger pay deals and longer contracts at the end off their relatively mediocre careers. Players don’t simply move because they don’t like Ashley, they move for money and other reasons as well, its too simplistic to argue otherwise surely?

The argument is made that Ashley should splash the cash, but why? After he has made mistakes the supporters were rightly angry and upset and heaped abuse on him, some of it excusable. However, Ashley could quite easily have pulled the plug and called in his loans. Instead we have 10 year season ticket deals freezing prices something Arsenal and QPR fans are envious of I’m sure. We might not have a top four team but then we don’t have top four finances. I’m happy that we aren’t in the position of other clubs in the Premier League, how dispiriting must it be to support Everton right now? Would we rather the “ambition” (Joey Barton) of QPR? A 40 per cent season ticket increase and a £4.5 million Anton Ferdinand? No thanks. We could show the ambition of Sunderland and sign two 30 something ex Manchester United players on big salaries that will be paid whether they’re injured or past it in two years? Again, no thanks. Players can pontificate about ambition and praise the abilities of their close colleagues but are they qualified to comment on the operation of a football club, not in my mind. They play football. How many ex footballers occupy senior executive positions in football or any other industry, very few.

The anti Ashley brigade have little argument in the main. There is no coherent voice. I hear rhetoric, “get out of our club”, “never come back to the city” but there is little in the way of suggestion of plausible alternatives. NUST wanted to buy the club with private pensions, how would it then be run? We wouldn’t be spending millions on top players looking at the finances, we wouldn’t be able to resist big offers for players. Would Enrique and others hang around if Liverpool or another team came knocking with massive wages or European football? The fact is we have no guarantee that if somebody does buy NUFC they will be an improvement on Ashley. If ticket prices were hiked up by 40 per cent, if we were saddled with debt a la Glazer would we be really happy, is that preferable to rid us of Ashley? It might be nice seeing us win trophies with an Abramovich figure in charge but I’d still rather develop local and international talent and build a team following the methodology of Lyon, Lille, Udinese than sell out to international markets and become the play thing of an oligarch or sheikh. Give me a man who makes a twat out of himself drunk ahead of that fate, it reflects me more. The team can at least retain its pride of place at the centre of the community, as a local institution and source of pride that reflects the identity and culture of its support and the city.

In summary we’ve won nothing and achieved little since 1969. Countless talented players have left our side to win things, mainly mediocre managers have raised expectations beyond their limited abilties. A lot of money, mainly ours outside of the Sky tv revenue years, has been expended on mediocrity or worse. Ashley has made errors, he continues to make one with his uncommunicative approach in my opinion, but he does seem capable of learning from his mistakes and making hard decisions that bring furious reaction. I’m cynical and don’t wonder if some of the negative response is fuelled by a media peeved that they have limited access? Wouldn’t it be conciliatory to acknowledge the errors and move on? Wouldn’t we have a better argument for dialogue and transparency if we removed the bile and the furious reaction to every utterance or Chinese meal? Yes, he’s dropped some bollocks but we’re a damn sight better off now than we were in the latter days of Hall and Shepherd in my opinion. We’re a lot better off than Everton and others and we have a promising young side that encourages me more than teams who have invested significantly greater resources in players. I for one am pleased that the situation is as it is, for football surely cannot sustain the massive expenditure of the past, what industry can function like that in the long term? Teams that adjust will do better than teams that continue to operate at a loss and we should hope that we can be profitable and competitive in the future without needing to rely on Ashley or anybody else. That is the direction his current plan is taking us in looking at the figures, sustainability that other clubs don’t appear to have without their sugar daddies or their champions league revenue. It would be nice to hear it from Mike or Derek, whatever my opinion of them as people, to affirm where we are going because in many ways it appears positive to me. Simply picking over the bones of every past error isn’t helping anybody looking to the future and is no starting place for an argument for dialogue.

FOOTNOTE: I’ve been called a t**t and a c**t more times than I can remember. If you disagree and are militantly against Mike Ashley and his apparent vision then it’s your right, I’d (seriously) love to hear your alternative to the status quo. Please at least construct an argument or just ignore me. You’ll be a better person for it.

*He didn’t really, it’s a joke

8 comments:

  1. Great piece Frank, admirably fair-minded, and I agree with almost all of it. My main worry remains Ashley's motive for owning NUFC. Is he really trying to build a sustainable club for the future? Or is he just trying to claw his investment back by slashing costs?

    If it genuinely is the former, then I worry about the lack of football expertise at the club. This is a regime that appointed Joe Kinnear, and has made numerous other huge blunders. Graham Carr is beavering away, but ultimately decisions on transfers come down to Ashley.

    In the grand scheme of things, not signing a striker (Demba Ba excluded) seems small beer, but it could be costly. I'm sure that the club could have signed Erdinc, for example, or perhaps Maiga, if they had gone about things the right way and paid a reasonable price. These are proven goalscorers, and surely £10 to £12 million is not excessive.

    There are a lot of mediocre clubs (including NUFC) who will be occupying that area of the league between European places and relegation. A striker would have eased relegation fears and quite possibly enabled a push towards Europe. He might also have filled those 10,000 empty seats.

    Then also there's the fear that he is using NUFC to promote Sports Direct without fair (or any?) recompense. Compare the amount Etihad pay Man City, or Emirates pay Arsenal. The next set of accounts will make interesting reading from that point of view.

    But first and foremost we need communication, and the club needs to stop trying to deceive the fans. The Ruiz "bid", the shameless use of David Craig on Sky, hanging Pardew out to dry, the Llambias statement, which read to me like a chastisement of the fans...

    Again, great post. I'm not sure what the way forward is, but it certainly requires sensible discussion and not bedsheet protests.

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  2. I agree with a lot of this, particularly the points about Shepherd, Hall and the ruinous expenditure on the likes of Luque and Owen. However, I'm not sure why you feel Ashley "deserves credit" for putting his own money into the club after his failure to do due diligence. If I bought a house that was riddled with dry rot on the basis that it looked nice from the outside I'd end up paying just as much as Ashley to stop my investment collapsing around my ears. His only alternative was to write off the £138 million and close down the club. He's hardly a philanthropist.

    And has he in fact learned from his mistakes? Some, yes. This was, after all, the man who sanctioned the purchase of Xisco for a £6 million fee and extravagant wages (that policy wasn't just confined to Shepherd). But his continued lack of communication, the failure to strengthen key areas of the squad, the half-truths told to the fans (or lies in the judgment of the court in Keegan's constructive dismissal case) are no better than they were in 2008.

    You refer to NUST but not the Newcastle Fans United campaign which is currently attempting to foster better relationships between the fans and Ashley and provide your 'coherent voice'. Your alternative to the status quo seems to be 'do nothing, pay your cash and wait'. There's very little argument in that either.

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  3. Interesting post.

    I'm all for financial prudence - the bubble is going to burst someday - but there doesn't seem to be a sensible transfer strategy. Buying young and cheap is fair enough, but those in charge need to focus more on the playing side of things and less on the bottom line. Getting a striker in would've won the club some good faith from supporters but instead our unwillingness to pay the going rate just reaffirmed what we fear about those in charge - they don't know what they're doing. No one wants to return to the darks days of Freddy the Scrapman and his flights of fancy in the transfer market but there is quite a substantial middle ground between his policy and Ashley's.

    The lack of communication is another major bugbear of mine with this current regime. I'd be a lot more sympathetic to their cause if they were willing to give us the time of day once in a while. Instead they lurch from one crisis to another (brought about by their own poor decision making it has to be said), releasing ill judged statements along the way which only results in getting everyone's back up. This complete refusal to converse with the fans just affirms the view that the contempt is mutual.

    At the end of the day everyone, even Ashley, wants Newcastle United to be a success on the football field but so much has went on off it that the relationship between boardroom and supporters has completely broken down. I'd guess many fans be willing to let bygones be bygones and work with the club if they were willing to open their doors and talk to us. Christ, if the Sheikh's at Man City can do it why can't Mike and Dekka?

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  4. Wow! A pragmatic view on the ownership of NUFC... they're hard to come by.

    I really would struggle to disagree with anything you said there to be honest.

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  5. Excellent piece this and I pretty much agree with all of it. I'd much rather we had a rigid transfer policy in place like we seem to rather than throw overpriced wages and transfer fees at so called big name players. Like you say, unless we have a Sheikh or an Ambramovich footing our wage bill, that kind of big money spending is very risky in the current climate.

    There's not question that Mike Ashley and his cronies have made some mistakes in their ownership of the club, but rather than look at the farce of Kinnear, Shearer and Keegan, I'd rather look at the present day (and the future).

    As things stand, I think we've bought and sold pretty well in the transfer market, the only thing that does worry me is the lack of striker. I'm not necessarily talking a big name here, just someone to put the ball in the back of the net. Hopefully Leon Best and Shola will prove me wrong but I have my doubts. I might also be in the minority here but I think our manager, while seemingly powerless when it comes to transfer dealings, has the respect of the players and has built what is at the moment a solid and trustworthy if unspectacular team.

    So far so good this season, but as always with NUFC, another disaster could always be lurking around those many corners we seem to keep turning...

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  6. Really well written piece and one I mostly agree with, as with the comments posted.

    Any Newcastle United fan should applaud efforts to reduce the club´s costs and this new transfer policy of bringing in young players with potential sounds good on paper. My problem with it is what happens when or if a bigger, more successful, better paying club then bids for that player. Take the Carroll sale as an example. Aren´t supporters then entitled to expect a replacement to be purchased? I refuse to believe there wasn´t a good enough striker available and we all know the money was there. Instead, it seems to a case of ´lets see how we go...´. Gambles Ashley´s supposedly learnt from.

    Communication is the major issue for me. Frankly, I find the statements the club releases to be laughable. The latest one was full of contradictions, claiming that they refused to jeopardise the club´s financial model but yet making a big money bid for Ruiz shortly before the transfer window was due to close. For me, that bid was either one of two things, an attempt at panic buying or a sort of token gesture to placate the fans. An ´Oh, we just missed out´ type of thing. In which case, I can´t blame fans for being mistrusting.

    I do feel that we´re stuck with each other, Ashley and NUFC and so we can only look for improvements. Communication would certainly be a place to start.

    Great writing, again.

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  7. Ashley's four seasons: relegation battle, actual relegation, fizzy pop league for the first time in almost two decades, mid-table relief.

    Utter contempt for the fans demonstrated time and again, club legends publically mocked by the MD, an unprecedented number of ex-employees attacking the way the club is run, the singing section strung along all summer then scattered to all parts of the ground, lies about Carroll not being for sale, lies about Carroll's fee being reinvested, falling attendances, debt at levels never dreamt of before at this club, six managers not counting caretakers, SJP 'renamed' and plastered with ever-expanding Sports Direct branding, an endless stream of bullshit, lies and spin via media outlets and a cowardly refusal by the owner to answer for any of it.

    Ashley is fucking killing this club man. Forgive and forget? You can if you want, I never will. He's an utter bastard, so are his lackeys and I doubt we've seen the worst yet.

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  8. Firstly, congratulations on a well writen piece which really cuts deep into the heart of the malaise currently surrounding Mike Ashley and Newcastle United.

    I must raise issue with a few of your points however as i really want to ensure a structured debate can take place, whilst not wishing to contstantly beat Ashley wih rods from the past, to forget for the future sake of the club and to forgive the man are totally mutually exclusive.

    The first point would be in your reference to being better off now than the latter days of Shepherd and Hall, you do attach a caveat of "in my opinion", and i'm glad you did because in shepherds last season (06-07) we finished 13th, league cup quarters, won the intertoto (allegedly, might be better to avoid that one) and got to the last 16 of the UEFA cup. Now i travelled to the majority of those European games and i am immensley happy i did, it is something my father never had the chance to do previously and i find it hard to believe at the moment that even my children will ever have the chance to go to places like Frankfurt and Amsterdam in support of their club. Perhaps the conflict of opinion arises in the term "better off". the defination of which is totally suseptible to opinion. its pretty fair to say though mnost fans would take the 06-07 outcome at the end of this season, if it were possible.

    I accept and understand that ultimately the club made an operating loss in the last six seasons, but as is rightly pointed out the clubs finances are somewhat of a mystery currently and due to the events of the years in question the figures quoted could be mis-leading. relegation, the club being sold and of course multiple managers substantial severence packages perhaps cloud the issue slightly, remember if a football club is succesful on the field does it NEED mammoth profits? as a supporter, if your team is succesful, then surely a break-even is as good as 100 million in dividends being payed to the nameless and shameless, in the supporters eyes anyway.

    Also the comparison drawn between Henry,Beckham,Van Nistelrooy and, wait for it, Nolan are frankly ridiculous, the fact that the re-sale values realised on the former three players are at least five times what Nolan is reported to have been sold for really undermines the valid point, which is; Nolan is 29 and probably at the peak of his slightly above-average powers. it is simply not good business to sell for a meagre sum of money...unless he is traded in for a younger and better model, which appears to be the case, in Cabaye i think we have brought in a player who posseses more natural talent than Kevin Nolan can even dream of.

    Which nicely brings me onto soemthing positive, in your piece you make reference to Graeme Carr, a man i have the utmost respect and admiration for, especially considering his employer he has undoubedtly been on of the saving graces, unearthing some awesome players who have undoubtedly been bought for a fraction of their actual worth, and herein lies the modicum of optimism, touched upon in the piece, we must believe things will improve, in the words of Gandhi "You must be the change you wish to see". lets hope we can become a hotbed of young ambitious talent who are not solely interested in lining their pockets but in delivering success to the one thing that has remained a constant throughout all the turmoil, not just in the last 5 years but in the last 50, the peerless fans Of Newcastle United Football club, and when that happens... I might, and i mean might, start buying my Jockstraps and various Kangol attire from Sports Direct again.

    congratulations again on a well presented body of opinion. Keep The Faith.

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