forlanssister 3,114 Posted November 3, 2015 Share Posted November 3, 2015 This is what I don't understand. He won't be making much money from Rangers. All Ashley is getting from us now is bad publicity They get a bite of the cherry at every stage of the process, sourcing, delivery, storage, distribution, sales, branding etc...etc. Sports Direct has a P/E of 17.09 meaning every million they make from Rangers is worth £17.09 million to their market capitilisation and over £9m to Ashley personally. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,114 Posted November 3, 2015 Share Posted November 3, 2015 How does the current/live criminal investigation against the unlawful take over of Rangers affect this contract? That will take years to conclude and even with a satisfactory conclusion we'd then have to set upon another civil action against SD which would take years and cost millions with no guarantee of a satisfactory outcome. 0 Quote Link to post Share on other sites More sharing options...
RANGERRAB 3,742 Posted November 3, 2015 Share Posted November 3, 2015 They get a bite of the cherry at every stage of the process, sourcing, delivery, storage, distribution, sales, branding etc...etc. Sports Direct has a P/E of 17.09 meaning every million they make from Rangers is worth £17.09 million to their market capitilisation and over £9m to Ashley personally. ER............what is P/E? How does Ashley get £9m ???? 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,114 Posted November 3, 2015 Share Posted November 3, 2015 ER............what is P/E?How does Ashley get £9m ???? Share price to earnings ratio. He owns 55% so personally benefits from 55% of any gain. 0 Quote Link to post Share on other sites More sharing options...
limeburner 0 Posted November 3, 2015 Share Posted November 3, 2015 They get a bite of the cherry at every stage of the process, sourcing, delivery, storage, distribution, sales, branding etc...etc. Sports Direct has a P/E of 17.09 meaning every million they make from Rangers is worth £17.09 million to their market capitilisation and over £9m to Ashley personally. OK,Iwill have a go.Every million they make is worth 17 million? Im sorry ,i dont understand. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted November 3, 2015 Share Posted November 3, 2015 I still don't understand how what Ashley has done is allowed to be legal. Business rules always seem incredibly backwards and seem to be there to allow those with no scruples to get rich at the expense of others. In this case it seems that a good profit making strategy - if you've already got a lot of liquid funds, is to buy majority shares a company, put in your own board, get them to sign a incredibly onerous contract to your main company for 10 years, sell the shares and move on to the next one. There has to be somewhere in law, where this kind of insider dealing is punished, and even just somewhere in law where you can have obviously overly onerous contracts snuffed out. That, it would seem, is still to be determined, hence why King has said he will hold them accountable. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted November 3, 2015 Share Posted November 3, 2015 The directors that are being taken to court were not the ones who agreed the current retail deal, so I doubt it will have any immediate effect. Could we not have Llambias & Leach up for conflict of interest though - or was it not them that agreed the current retail deal ? It is fairly clear that they both were still under the influence of Ashley. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted November 3, 2015 Share Posted November 3, 2015 No-one really supported him (nor does now), but some saw reason why it was, at the time, good to have his "backing". For if anything he would protect his investment (not Rangers) and would most likely have prevented us from nearly going bust. Which looked rather likely at the start of last season. Ashley obviously turned out to be the capitalist hardliner that he is and sure did not take well that his cabal was ousted. I wouldn't be surprised if he rolls any rock that is available to him in our way from now on. BTW, a repayment of the 5m to SD would return quite a bit of marketing rights etc. to the club. King is playing that card hard, so these two are at a stand-off now. As long as King knows what he is doing and it won't come back to haunt us, fair enough. We ... have little insight in this though, hence you will get some wary glances and comments. Sorry but that is blatant revisionism. 0 Quote Link to post Share on other sites More sharing options...
forlanssister 3,114 Posted November 3, 2015 Share Posted November 3, 2015 OK,Iwill have a go.Every million they make is worth 17 million? Im sorry ,i dont understand. The market values SD at 17.09 times its earnings, every million it makes is worth 17.09m to the market capitalisation of the company. Markets value companies on a multiple of their earnings (among other things). 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted November 3, 2015 Share Posted November 3, 2015 OK,Iwill have a go.Every million they make is worth 17 million? Im sorry ,i dont understand. For every million that SD make the share price is 17 times that earning. P/E ratio is the ratio that the share price is in relation to the earnings. Right now the SD P/E ratio is 17:1 which means for every million that SD makes in profit the share price is 17 times that profit. Hence, whilst SD makes "just" 1 million profit from Rangers.... the Company's market capitalization (share price multiplied by number of shares of the company) is magnified by 17. Ashley gets 55% of that share price as he owns that much of the company. Basically, the market place believes that the "value" of SD shares is worth 17 times as much as the profit is worth. So every million SD makes it generates 17 times that in share price value to the shareholders. That's how it works out to 9 million quid to Ashley - through the shares he owns in the company. 0 Quote Link to post Share on other sites More sharing options...
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