Mike Ashley’s Debenhams losses will be another kick in the teeth for Rafa Benitez and Newcastle .
The ailing department store has effectively entered administration –leaving the Toon owner a reported £150million out of pocket. Benitez, who is yet to sign a new deal, is seeking assurances that there will be cash available before committing his future to the club.
But those hefty losses, combined with his failure to offload the club for his £400m valuation, will do nothing to encourage Ashley (top) to invest in the summer transfer window – and that is likely to be the final straw for fed-up Benitez.
Sports finance expert says Dr Dan Plumley, a senior lecturer at Sheffield Hallam University, said: “He has probably over-valued the football club in terms of what is a more realistic market valuation.
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“He was after £400m but every estimation has them at about £300m – and that is if they are in the Premier League. He has put a lot of his own money into Newcastle. That has to be taken into consideration, but if you’re a buyer that is not your concern – you are looking at market value.
“Debenhams will have an impact on what he does with Newcastle because he’ll be looking across his portfolio of businesses, including Sports Direct.”
And Ashley’s other businesses are operating in a tough retail environment – and that’s unlikely to change anytime soon.
“Fans are obviously emotionally attached to a sports club, far more so than they are with businesses like Debenhams,” said Plumley.
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“Strip it all back and there’s a business decision here. His other business portfolio has an impact and if he’s looking to sell, then why would he sanction any more transfers in the window?”
The latest news comes against the backdrop of a result that should see Newcastle competing in the Premier League next season.
A 1-0 away win at Leicester on Friday put Toon on 38 points with Ayoze Perez (grabbing the winner.
After the game Perez declared: “We have suffered for that.” Benitez (above) believes their points total is sufficient to keep the North East giants in the top flight for another campaign.
The gameplan at the King Power Stadium wasn’t pretty, with hard work and defensive organisation being prioritised over finesse and flair.
Perez said: “That felt very good – we’ve reached 38 points and it’s fair to say we will be a Premier League team again next season.
“But I’m not going to lie to you, it’s been very tough.
“For myself and players such as Miguel Almiron, we have had to adapt ourselves to what the manager wants. We have had to suffer, stick together and to the plan.”
