Nicholas Craig column

Jun 1 2007 By Nicholas Craig, The Journal

Working wonders with underachieving brands. That's what Mike Ashley has made his millions from, and it's exactly what Newcastle United needs him to do now.

The man who stole the headlines last week by acquiring John Hall's 41.6 % stake in the football club is known for being fleet of foot and having an unorthodox style.

It is said that when Mike Ashley offered to buy Lillywhites five years ago, he tabled an offer at lunchtime and completed negotiations the same day.

We need the same decisive drive at St James's Park. In the space of a month we have seen the emergence of a new manager, then a potential owner. These moves may be followed by the loss of a striker - we wait to find out.

The next few weeks will, I hope, reveal more about the motives behind Mike Ashley's bid for the club. The £133m takeover bid represents a shrewd bargain for the retailer.

The most recent full-year figures show match day income at St James's Park was £31m (in 2005/06), around £4m more than its media income - although that will increase next year by around £15m.

Despite the painful lack of silverware in recent decades, Newcastle United generates a whacking £83m of annual revenue. As a brand it is resilient, strong and has exceptionally loyal support. It could be a spectacular financial success with the right direction.

What we all need to know is what Mike Ashley believes is the way forward for the club - how much will be freed up for new players, what ambitions in Europe should be nurtured and how he intends to communicate with the supporters, players and management team.

There is a real excitement about the new era dawning at St James's Park. As with any business, however, the club has to manage major change effectively and move on quickly. Football management at board level is often a peculiar mix of commercial ruthlessness and emotional involvement.

John Hall's stated sadness in letting go of his shares and Freddie Shepherd's obstinacy in refusing to stand down as chairman are signs of two men whose attachments to Newcastle United go far beyond business or financial concerns.

Mike Ashley's decisions are, as yet, unhindered by emotional pull. His cool, focused approach may yet halt years of underachievement at the club, and make new silverware at Newcastle a reality.

Nicholas Craig is a partner at Watson Burton law firm