Member Info for stuzeeuk

I understand fine, mike gets paid a fat old bonus, his helicopter paid for and and maybe his luxury chaet too, and the shareholders pick up the losses as the stock falls and the company issues a profits warning. If your happy with that, then you and your money are easily parted ;-) If your also happy with the company blurb on remuneration and nominations then good stuff. It seems sub-optimal to me as does the conflicts of interest. From that statement it looks like there may be more material conflicts than I have been able to see for a quick sweep of google. We certainly aren't getting full disclosure here. The reason they need to explain is because it probably doesn't meet the 'stress test' of the standards set out in the UK Corporate Governance Code. Not having a decent CFO is simply poor, especially when the company is going through some growing pains. The ethics that under pin such poor corporate governance have been shone a light on, during the USC asset stripping allegations and the working conditions of staff in the recent documentary. Now we have political interest from north and south of the border. All of this is impacting on the share price, as the market takes a second look. All I am saying is, that its worth having an honest look again. I hope you haven't lost too much and the stock recovers. I also think it would be worth mike paying his subscription to a friendly polictical party. You never know when you will need to phone a friend, this stock seems to be losing them quickly.

Have a look at Chesnara, its a nice good stock that pays a smashing dividend,

So you admit mike gets paid, and you dont. Well that was the point ! :-) . However you get there Disco. He has a fat bonus, and you get didly (just like most of the employees at the warehouse and all the other shareholders). He also has the helicopter contract and potentially income from the use of the chalets. I note you are just ducking these issues. Now you are arguing nepotism and non disclosure is fine. Good luck with that approach. We have most of the leadership team also forming the nominations and remuneration committee and no permanent CFO, the stand-in is reportly earning a pititful £60k a year, while the stock price halfs and the company has to issue a profits warning. All of that seems fine to you?, even if you dont mind the individual issues, what does it tell you about the ethics of this company. I hope you haven't lost too much Dave, it looks like the smart money has already jumped ship.

Dave your clutching at straws if you think a dividend eight years ago materially changes the point. I am not sure you can get personal with a stock or a company. My experiences in the shop and website in the past have been largely positive. My main issue is that this stock is making good profits, investing them badly, paying senior executives large bonuses while shareholders get zip. I can see why many have taken the opportunity to bail.

Dave, Your clutching at straws here, SPD hasn't paid a dividend since the year of its stock market inception and and big mike does not work pro bono. He has a massive bonus award scheme. It seems to me, you cant see the wood for the trees. MASH have the Aviation contract with SPD and protentially income from the luxury chalets used by the senior executives and it appears MASH and connected companies surround this stock. Keith Bishop Associates (who have a contract with SPD) are employing Mr Llambias's son and we dont seem to have full disclosure. The corporate governance is here must be among the worst in the FTSE 250. The facts are Mike gets paid. While the shareholders get nothing.

I think the Forsey issue is likely to rumble on for a while. Plus, with the number of enemies this stock is making, it will be wading through treacle for while.

Arthur Anderson didn't fair too well, in the bad publicity surrounding Enron. Its a no dividend share, so they can make as much profit as they like. The shareholders won't see a bean. big mike will, he has that MASH aviation contract and his executive deputy chairman salary.

You seem a bit naive Dave, we have plenty of facts and plenty of unknowns. We know they MASH charge for use of the Helicopter, but you don't know how much? as an investor would you not agree full disclose on potential conflicts would be good corporate governance?. Of course it would, but it appears big mike isn't a fan of good corporate governance. Made a packet on buying competitors shares?, but will still miss the profit targets. It doesn't say much for the business model. If competitors are doing well and SPD are not. If they made such a packet on JD shares can we expect the company to share the proceeds with shareholders? No SPD will not give out any dividend, as big mike doesn't do dividends. Which is a shame, if he did, i'd rate this as a buy. I am simply higlighting some of the corporate governance failures. Another is the lack of a CFO. We have had an acting CFO for a while now, who reportedly only gets paid 60K. Thats doesn't show much confidence in the person or perhaps the post. We have a profit warning but still no new CFO. I would have put that post as priority. Over half the leadership team are also the nomination, and remuneration committee. I assume the board get paid, even if the shareholders dont.

Well we dont know if there is anything wrong with it or not, as we dont have access to sufficient information. I would say nepotism is generally not a great way to run a company or group of companies. If SPD is paying vast amounts to MASH aviation and to other MASH companies for the chalets i'd say there is something wrong, if not, and the contracts are good value, then there is no problem. The facts are we don’t know. Good governance and reporting would help protect against, perverse incentives for MASH around those contracts. Therefore full disclosure would be useful, however good governance is not this stocks strong point. What worries me with SPD and MASH is that they don’t have a good track record of value contracts. Newcastle United don’t seem to be happy with their SPD contract, nor does Rangers and employees at the distribution warehouse don’t seem incentivised. None of this should worry SPD shareholders at present but they should keep a watching brief, because if big mike falls out of love with SPD and decides it time to asset strip the company he has the knowledge and legal firepower to do it, and do it well. as he said himself when you get into bed with big mike, only one of you is likely to get shafted. There are allegations of asset stripping at USC and scrutiny from the Scottish and Westminster governments. Mike seems to be making enemies. In addition mike just restructured his businesses at the start of the year, was this just to reduce the tax bill or is something more sinister happening. Again we don’t know, and he is under no obligation to tell us. What we know at the moment is, the shareholders are not getting a dividend from a company that makes good profits, and that money doesn't appear to be invested well, as we have seen the share price half and a profit warning issued. There appears to be storm clouds on the horizon, stock performance, economic and political.

The ‘60K substitute’ is a guru in corporate governance … I am sure

So we don’t really know how much SPD pay MASH for the use of the helicopter by SPD staff? And it appears we are not sure how much SPD are charged for the use of MASH chalets?. I hope there aren’t onerous contracts. However we do know Keith Bishop sits on the board of directors. It appears Keith Bishops Associates provide PR services for SPD. KBA also employ Mr Llambias’s son, a director with close links to big mike and SD. I wonder how much SPD pay KBA for the PR services? (It appears they aren’’t doing a very good job). I also hope the conflict of interests in registered at sportsdirect. It appears the more you look under the bonnet at SPD the worms we find. Queeny, do you know how much SPD have contracted with MASH for the helicopters and chalets? And how much they pay KBA?, there seems to be some potentially material conflicts of interested here.

http://www.theguardian.com/football/2016/jan/09/mike-ashley-sports-direct-15m-jeff-blue Link attached from the Guardian. Seems he is worried about the share price and was looking for institutions to help prop it up.

Hi Queeny, I agree the lower the better, however surely if you are an investor you want the share price to come back up again?. Big mike has been so worried, he has allegedly been paying people to have it artificially propped up. That doesn’t sound like there is too much confidence knocking around. Considering mike is the big dog in this share, I’d suggest a low price and a worried owner are not good indicators. MASH have a small stake in JD, but given their market capitalisation is of similar standing I am not sure there will be a takeover anytime soon, especially with this share price heading south while JD seems to be doing a bit better. I never conflated MASH and SPD, as they tend to go hand in hand. MASH owns Newcastle United, and Sports Direct have a cracking retail deal with them, where SPD take all the bounty and Newcastle United pick up the 130m losses. As you suggest the same at Rangers, however, it does all end there. If you can’t see a relationship between them the your not looking hard enough. How many contracts does MASH have with SPD?. The helicopter contract is well established, but I have no idea of its total cost to SPD. Then there is the use of the Chalets by SPD staff. I am not sure how much is charged for their use. It would be great of SPD could let us know. It’s been a difficult period for this stock, - With the USC asset stripping allegations. - The close attention of the Scottish affairs committee. - The recent documentary and media interest in the working practices at the company distribution centre. - Westminster parliamentary scrutiny - Boardroom defeat at Findel (with a point blank refusal to appoint Mr Gardener). I assume Findel shareholders feared an asset stripping move similar to that at USC. Anyway let’s see how the announcement goes on the 19th as Fingers and toes crossed. If you are looking for a good dividend then I’d recommend Chesnara.

Its not today's profits that counts, its tomorrows, and we are already in profit warning territory here. Plus it seems to me the key failing of this stock is the lack of a dividend. No point in watching profits, if the company just keeps them all, then re-invests them badly and issues a profit warning. I think the issue is does the stock have further to fall?, or are we at rock bottom?.

Fair play, I am stil in. Although its going to be a long play

Any thoughts on how this will go ?, they should have a fair idea about their year end profits from their management accounts by the 19 Feb, as retail tends to be slow from Jan – Easter. I wonder if all the bad news is in the price ? or is there further to fall? A bad set of results would not got down well, and given the profit warning and still no sign of a dividend, I am a bit sceptical of a recovery in the short term. I do think the no dividend policy is killing this stock. If they were paying 3-6% it would prop up the price during these difficult periods, however its not and never seems to have paid a dividend.

Looking at the RNS, it seems shoppers are choosing to buy at JD (and/or take their business elsewhere) instead of Sportsdirect.

Thanks Queen/rbrand, I have no idea regarding an MP's shareholding, however he was not acting alone, he was part of the Scottish affairs committee, and now we have a senior executive facing legal charges and allegations of asset stripping at USC. This puts the potential co-conspirators in the direct line of sight of the national and sub national legislatures, and, directly in the face of the judiciary. I would suggest this is not a good place to be. The recent documentary on working practices was without doubt a devastating reputational blow, calling into question the ethics of the company from top to bottom. While Rome burned, the share price halved, petty board room battles with second tier Scottish football clubs, and small retailers, together with 130m sunk costs tittering on the edge of relegations seem to have taken on precious time. With sales plateauing and no dividend in sight there seems little love around for this one. Sometimes when a shares luck is down, the only way is up, however with executive time being squandered on irrelevant issues, a steady stream of calls to speak to parliamentary committees, legal cases and petty boardroom battles, I fear this shares woes will only end when it decides to re-focus on its business interests and not its personal ones.

Hi QueenElvis, Whilst MASH and SPD are corporately separate they appear to simply exchange/share key personnel and legal resource. My point is that when the company clearly need to focus on the operations of its core business, it seems to be engaging in petty personal battles with insignificant investments. Boardroom defeats at Findel (with a point blank refusal to appoint Mr Gardener). I assume Findel shareholders feared an asset stripping move similar to that at USC and the shambolic removal of Mr Llambias at the Scottish club, That together with the SD minimum wage/staff management issues appears to be driving brand value downwards. After a 50% reduction in the share price this company needs it best executives focussed on the cash cow core business. However Egomania and personal vendettas seems to be taking that precious time. With growth stagnating and without a decent dividend in sight its an easy share to fall out of love with. This share needs to focus on what is important, not petty low value, egotistical battles. When this share gets back to business then perhaps we can all look again. At the moment it looks unloved by the small companies its wasting its time battling with, investors, the judiciary, the legislature, institutions and regulators. A number of those are difficult foes.....

This share seems to be all over the place, on one hand we have - The core sport retail business, Collection of IP and brands, movement into broader retail, football investments, strategic advertising in football related clubs The company ,however, seems to be getting bogged down in - The football investments and advertising - Petty legal battles with entities that don't matter to the business. - This seems to be drawing negative attention from the judiciary. - Allegations asset stripping from USC - This drew political interest from Scottish MP's - Whilst working practices at the distribution centre has drawn media attention - and Westminster parliamentary scrutiny. All of this seems to be drawing us away from the core business of providing good quality ow cost retail. Like most single owner dominated companies the very power, decisiveness, swiftness to implement that created the great brand seems to be imploding. The management and ownership team seem obsessed with personal battles and non core activities. Its no surprise to me the share price has halved. Its time the company sold non core businesses and stopped wasting time and attentions on personal vendettas. SD doesn't pay dividends so the price is extremely sensitive if there is no or little growth. I cant help but draw parallels between this company and Sir Robert Maxwell back in the 80's. So often the darling only to implode. I think that point is far off, and in the interests of the company if they don't refocus and perhaps move Mr Ashley on I can only see storm clouds ahead. The days of exponential growth seem to be behind us.