Newcastle United Blast "Wholly Inaccurate" Sports Direct Claims Made By Channel 4

Magpies release second statement denying claims made in "The Secrets of Sports Direct".

Newcastle United have vehemently denied claims made by Channel 4's Dispatches programme about the club's retail relationship with Sport Direct - blasting the expose as offering "erroneous media reporting" in an attempt to "further antagonise fans". "The Secrets of Sports Direct", broadcast on Monday night, went behind the scenes at the sportswear giant and the programme suggested Magpies owner Mike Ashley's retail company received a portion of the money spent in Newcastle's official club shops - something the club have described as "wholly inaccurate". In fact, the programme claimed the retail arm of Newcastle United is worth £3.4 million to Sports Direct - and that the club receives no money from Ashley to advertise his company around St James' Park.
But, in a second statement - following on from the one they released just moments after the hour-long Channel 4 programme - the Magpies state that the only money they pay to Sport Direct is for stock at cost price, as well as a handling fee. They also claim that this actually "represents far better value" than the costs previously paid by the club's retail department. The statement is extremely hard hitting, and even accuses Channel 4 of "deliberately misleading" Newcastle supporters in a bid to "antagonise" the club's fanbase further. The club also state that they find it "unbelievable" they were not contacted by Channel 4 in order to clarify the broadcaster's "obviously factually incorrect" claims before going to air. Magpies supporters protested against Ashley€™s ownership during the 3-2 home defeat to Swansea City on Monday - as well as joining Rangers fans in standing outside Sports Direct shops and €œboycotting€ buying products from the retail shop. Newcastle go on to claim that the club actually gains money from the relationship with Sports Direct - and that the change to the club's retail arm in order to join with Ashley's company back in February 2013 actually increased its profit margin by 50 per cent.
The full club statement, released on Newcastle's official website nufc.co.uk, reads as follows:
"In reference to our statement last night (Monday, 27th April) regarding the Channel 4 'Dispatches' programme, The Secrets of Sports Direct, Newcastle United would like to clarify the facts for the benefit of supporters. Last night's programme made a wholly inaccurate claim regarding the retail relationship between the Club and Sports Direct. "In the Club's view, the broadcaster deliberately misled Newcastle United supporters and provided yet another example of erroneous media reporting which only serves to further antagonise fans. In January 2014, in the minutes of its Fans Forum which are published online, the Club confirmed how the retail relationship with Sports Direct works. "For the purpose of clarity, we can reconfirm that 100 per cent of the income from goods bought in the Club's official stores and on its website are received by the Club and not Sports Direct, as the 'Dispatches' programme claimed. The only money paid by the Club to Sports Direct is for the stock (at cost price), plus a handling fee. This represents far better value than the costs the Club historically incurred in relation to purchasing, storage and distribution. "In fact, the change to our retail operating structure introduced in February 2013, which saw us partner with Sports Direct, increased the profit margin by over 50 per cent. This benefits the Club hugely. In simple terms, the Club receives more money as a result of this relationship. Channel 4 failed to contact the Club in order to clarify any facts in relation to our retail operation. "Given that this information was already in the public domain, and had been for over 15 months, we find it incredible that the makers of an investigative current affairs programme chose to air information which was so obviously factually incorrect."
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NUFC editor for WhatCulture.com/NUFC. History graduate (University of Edinburgh) and NCTJ-trained journalist. I love sports, hopelessly following Newcastle United and Newcastle Falcons. My pastimes include watching and attending sports matches religiously, reading spy books and sampling ales.