Sports Direct profits fall a whopping 91 per cent

It certainly seems to be raining shit on Newcastle at the moment. Not only do they prepare themselves for the forthcoming Championship season with an uncertain management team, a restless squad and a dreadful away strip, but owner Mike Ashley has taken a fiscal pounding thanks to his underperforming sportswear chain.

Sports Direct, the company in which the rotund businessman owns a 71 per cent share, has suffered a 91 per cent fall in pre-tax profits. Earnings fell from £118.9m to £10.7m this year, even though revenues topped £1bn and sales were up 5.1 per cent.

The huge downturn is a result of the collapse of Icelandic bank Kaupthing Singer & Friedlander (KSF) - the very same organisation that ruined former West Ham owner Bjorgolfur Gudmundsson. The collapse caused the sports retailer to write-off a staggering £53.1 million of shares, which is an awful lot of hoodies and baseball caps.

Newcastle owner hit hard by the banking crisis

It certainly seems to be raining sh*t on Mike Ashley right now.

Earlier this year, we told you how the Sports Direct mogul had gambled away £129m, by losing £300,000 for every penny that Halifax Bank of Scotland’s shares moved. He lost that wedge when HBOS saw £3bn wiped off their value in a single day in March, and the recent misfortunes of the banking and insurance group have further dented the rotund Newcastle owner’s coffer.

Early last week, before Lloyds TSB rode in on a black stallion to offer a rescue package for HBOS, Ashley was said to be down £380m, but