Former Newcastle United owner Mike Ashley is eyeing up Sheffield Wednesday as his next football project, but he could still have an impact on the Magpies.
Amid a summer of chaos at Hillsborough, the Owls are under the control of administrators and looking for a new owner.
It was reported this week that Mike Ashley may up his offer for Sheffield Wednesday to match the £30m or more that is already on the table from a rival bidder.
If you could say ONE thing to Sheffield Wednesday fans about Mike Ashley’s ownership, what would it be?
The former Newcastle United owner is largely reviled by Magpies supporters for the damage he did at the club during his time on Tyneside. However, Sheffield Wednesday fans are keen on the idea of Ashley taking over.
Should they be excited, though? And is he really the man to save the fallen giant from complete collapse?
Mike Ashley’s money is more than enough for Sheffield Wednesday
Geordie Boot Boys spoke to finance expert Adam Williams about Ashley’s approach for Wednesday to get a better insight as to how his money can affect the Championship club. By the sounds of it, he’s got plenty to tide the Owls over, but he might not quite be in this for the long-haul.
Williams said: “I don’t think there’s any doubt whatsoever that Ashley has the money to get Sheffield Wednesday back where they should be. Whether he’ll actually spend it is another matter entirely. His entire business philosophy is based on cost-cutting. He’s also got a track record of opportunistic acquisitions.
“Clearly, Sheffield Wednesday fall into that latter category. Post-administration, there’s hopefully not going to be a huge amount of debt left, and I’m fairly confident his plan would be to invest modestly in the squad, get them up from League One [if and when they are relegated], clean up the balance sheet and then sell them on for a profit in a few years time.”
Would Ashley have his sights set on steering Sheffield Wednesday to the Premier League eventually, then, or is that too much to ask?
Williams thinks so, adding: “To take them a step further is going to require very significant investment. You are probably going to need to spend £50m-plus on the stadium, potentially £100m in owner funding over the next 5-10 years if you want to have a crack at getting to the Premier League. I don’t think Ashley would be willing to take that risk.
“At Newcastle, that strategy worked – for him – as he was able to spend very little and flip the club for a huge profit, giving the new owners a platform on which to build. It’s a different kettle of fish in the EFL.
“You’re going to be running a wages-to-turnover ratio in excess of 100%, covering massive operational costs, and your only real hope of an outsized return is if you’re promoted to the Premier League and can stay there for a few years. It’s a casino.”
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What was your lowest moment under Mike Ashley at Newcastle?
Plenty to choose from 😂
Two relegations, one stadium rebrand, plenty of cup exits and Dennis Wise….
How Mike Ashley could still impact Newcastle United years later
Incredibly, if Mike Ashley is successful in acquiring Sheffield Wednesday, Williams predicts the former Newcastle United owner could haunt the Magpies, financially speaking, in rather interesting ways.
He said: “From Newcastle’s perspective, they have clearly now got owners who are at the opposite end of the spectrum. The stadium project is frustrating, yes, but PIF aren’t doing things by half measures. Commercially, the club is booming. A lot of work has gone into building the brand as much as the bottom line. That long-term, nuanced thinking is beyond Mike Ashley.
“While they will operate in different leagues, you’re going to get a situation where Ashley will be indirectly lobbying Newcastle and the other influential teams in the Premier League for a bigger slice of the TV money pie. The EFL wants 25% up from about 15% currently. It looks like the Independent Regulator will step in if the EFL and the Premier League cannot reach an agreement, but that is a last resort.
“Ashley’s background and political sway means I’d expect him to have a lot of influence in those discussions. The current domestic Premier League TV deal alone is worth £6.7bn over its lifecycle. If the EFL continue to push for another 10%, you’re looking at £670m from the domestic rights alone. That money comes out of Newcastle and their peers’ pockets.”
For the sake of Sheffield Wednesday and their chances of surviving as a football club, we sincerely hope Mike Ashley can step in and course correct after the damage Dejphon Chansiri did. But, in terms of the impact he could have on Newcastle, let’s just pray Ashley’s influence is limited.
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