Consortium Cool on £420M Price Quoted For Newcastle

Newcastle United United were saying nothing today about multiple reports that Mike Ashley is ready to sell the club for a massive £420M, to an American Consortium, based out of New York.


Mike Ashley – NY consortium turned off by price quoted for Newcastle

Mike Ashley is reported to be telling the New York-based private equity investors, Inter-Media Partners, through a third party, that he will be willing to sell Newcastle, but only if he can almost double his investment made on the club.

Since Mike has put £100M into the club after the initial price of around £130M, that would be around £460M, so the quoted price of £420M is close to that figure.

The NY firm are not interested if that is the price.

But this deal and story looks credible, and we believe this story could have a lot of truth in it.   Mike cannot stop approaches being made for the club, especially when the Premier League is shown throughout the world on TV these days.

But the club has had two bad seasons in a row, and we’ve ended up with two of the worst points totals ever, in our Premier League history.

So how much would Newcastle be if we were to break into the top 4, or even be the 5th best team in England?

The answer is much much more than the price quoted above, and we think that is Ashley’s goal.

Of course he may sell Newcastle in the future, and if we can be successful again under Kevin Keegan, Mike will easily more than double his investment in Newcastle United, and we’re almost certain that’s what Mike wants to do, and it’s necessarily a long term plan.

Don’t forget it’s exciting building up a business, especially in the form of a football club, and even more so when it’s Newcastle United.

Of course there has been almost constant speculation that Ashley was willing to sell Newcastle at the right price, since he bought the club about a year ago, but this report seems to carry much more credence than earlier reports.

As far as we know, the NY based US Consortium has been put off by the high price quoted.

Comments welcome.

74 comments so far

  • Gunnar Pétur (Iceland)

    Jul 4, 2008 at 11:53 AM

    Comment #1

    bahh. Hope this won’t effect our doings on the transfer market.

  • Ben_BKK

    Jul 4, 2008 at 11:55 AM

    Comment #2

    I think MA is doing fine at the moment. But he has to bring in the players we need in order to improve next season, and if he doesn’t even accomplish that, I’m sure there’ll be a lot of angry Geordies on his back…

  • mozza

    Jul 4, 2008 at 11:56 AM

    Comment #3

    people think because its on bbc and itv its gospel i’ve read hundreds of stories that dont amount to jack s##t of both channels, there is nothing being leaked out of nufc these days so why believe this?

  • brownrob

    Jul 4, 2008 at 12:02 PM

    Comment #5

    Hehe hobs i reported that earlier in another story!

    Keep up mate!!! 😀

  • Davies

    Jul 4, 2008 at 12:02 PM

    Comment #6

    Reckon it was a bluff. I bet he’d have been bloody chuffed if the yanks had coughed up though!!!!

  • Graeme

    Jul 4, 2008 at 12:03 PM

    Comment #7

    But any business is “For Sale” if the price is right surely!!!!

    Companies change hands almost every day; some for squillions (like Yahoo, almost!) some for a few hundred thousand. Its nothing new.

    I’m sure speculation will continue to surround NUFC and its owner; we are a club that is back on an even keel after 3 pretty dismal years; we have a huge fan base and huge potential, which make us a very attractive proposition to anyone who wants to be in this business.

    No doubt MA will, at some time in the future, decide to sell. Its not the first time the club has changed hands and it certainly wont be the last.

    Why worry about something we have no control over. Any new owner will have to invest in players and the club if it is to come anywhere near taking NUFC towards its real potential.

  • broon ale

    Jul 4, 2008 at 12:06 PM

    Comment #8

    at least a dozen people had a really good discussion going on another thread regarding this subject!


    Jul 4, 2008 at 12:07 PM

    Comment #9

    Mozza it was in the sun as well so we know it must be true, As they have the same oh so reliable inside knowledge as Anal.

    A Toon source said Blah, Blah…Yawn


    Jul 4, 2008 at 12:08 PM

    Comment #10

    We will just have to wait and see what is going to happen?
    Has Ashley bought NUFC, sorted out the clubs financial problems and building a youth programme to make the club more attractive to possible buyers???
    Is he going to spend big money in the transfer market, to add more interest? as we need at least 6 quality new player, and if we get rid of the crap such as smith,duff, ameobi, geremi we will need 10 -12 (QUALITY) new players!!
    then MA as a successful business man I can see him wanting £420m

  • Stami

    Jul 4, 2008 at 12:10 PM

    Comment #11

    i have to agree with Mozza. its just the media doing their usual ‘let get the Geordies all riled up’ routine…

    gimme some proof

  • Angryman the Angry Fan

    Jul 4, 2008 at 12:13 PM

    Comment #12

    I spoke of this about 5-6 weeks ago. I was shouted down off many on this blog.
    “Too negative” etc etc etc.

    My post shortened said:
    . KK was brought in to appease the fans
    . This was a win win for Ashley as the fans would buy merchandise and invest in the club expecting the same as what happened the last time he was here.
    . Ashley cleared the debt. thus not paying huge interest on the clubs loans. Saving money.
    . Ashley has invested very little in the playing side, and probably does not intend to, saving money.
    . A huge cost cutting exercise has been carried out, saving Ashley lots of money and making the club appealing to a massive buyout. also disrupting purchases as the new buyers/investors want to see a stable book!!
    . Ashley will sell the club at a massive profit, also getting money form Ticket sales ( 10% for 3 years).
    . Ashley walks away minted, regaining the massive losses he has made on his other business interests leaving NUFC back at square one……
    . KK muted and only speaks ‘off the record’ as this may affect the potential sale of the football club!!!
    . All businesses are up for sale, it is a fact of life, and MA being a business man WILL sell at the right price.
    . It may be rumour or conjecture, but there is no smoke without fire, and if he does want to sell, at least come clean about it.

    Moric was a season ticket selling sales pitch, Guitierrez cost coppers, so please dont come back at me with these as proof of MA comittment!!


    Jul 4, 2008 at 12:14 PM

    Comment #13

    Graeme – well said!!!! (7)

  • Matt

    Jul 4, 2008 at 12:15 PM

    Comment #14

    Even if he does sell up he’s done more than Shepherd ever did for the structure of the club. He’s cleared debts and invested in the youth development.

    We don’t need 10-12 quality signings, we need a slow and steady build up. I’ll be happy with 4 quality signings and the same next season. It’s better to do it slow and steady than to go for broke and fail.

  • Hammy

    Jul 4, 2008 at 12:15 PM

    Comment #15

    Let’s email those mugs at SKY, saying we have some “insider” info from a “source” close to MA, saying that he is going to sell the Toon to Bill Gates and to expect huge investment in the transfer Windows……suckers….

  • HeronMag

    Jul 4, 2008 at 12:16 PM

    Comment #16




  • true

    Jul 4, 2008 at 12:16 PM

    Comment #17

    so what at 420 no one will touch us, and if anyone did offer 420 why should he not take it!
    MA only way of making cash out of NUFC is to make us a sucess on the field which means erope of breading yiung tallent to sell on – lots of it which just aint going to happen

  • Luke

    Jul 4, 2008 at 12:16 PM

    Comment #18

    Can’t blame the tubster if he sells. It aint no charity but let’s hope it’s not true and he’s looking to invest in the squad.


    Jul 4, 2008 at 12:17 PM

    Comment #19

    To put a slightly different slant into the discussion. There is no reason to think that MA does not have a big enough ego to want to see the club he took on as it was about to plunge over the precipice of failure and see it it raised to success. His body language and presence at matches would suggest that he wants the club to be a success, perhaps he will sell it but I think he wants to see some silverware in the cupboard first. Its just a question of pride isn’t it.

  • Richard Jarvis

    Jul 4, 2008 at 12:17 PM

    Comment #20

    A report in the Sun, need I say more. One minute it says no-one was allowed to talk about it, the next it has quotes from the infamous “insider”. Complete and utter Bull

  • ToonDaft

    Jul 4, 2008 at 12:18 PM

    Comment #21

    only thing that worries me is that apart from clearing debts, which of course makes the business more lucrative to potential bidders, so far, Ashley is yet to spend on players from his own pocket. I mean what was our net spending in his first summer? I don’t know for sure, but I bet it was very small. Also, this summer (and I know it is early doors still) we MAY have one in for what sounds like a freebie, minus buying out of contract which would be covered by Rozey deal (probs twice over) – is this worrying others? If he has an eye to sell soon will this scupper our transfer involvement, i.e. will we only replace players gone with much less transfer fee and much less wages? I am unsure how progressive that would be – we need some class in this team!

    However, on the flip-side, would Ashley have went to all the pain of establishing a team to take the club forward like he seemingly has done if he was planning for the quick sell?


    Jul 4, 2008 at 12:18 PM

    Comment #22


  • Angryman the Angry Fan

    Jul 4, 2008 at 12:20 PM

    Comment #23

    PS. Before you all start having a go…….
    I sincerely hope that the last mail I posted is completely wrong and he backs KK to the hilt with the funds he needs to take the club forward!!
    As yet, this has simply not happened……….

  • broon ale

    Jul 4, 2008 at 12:22 PM

    Comment #24

    the bbc story is based on an “insider” from america with not a single grain of fact attached to it.

    this is the same BBC that reported the twin towers collapsed 20 minutes before it actually did.

  • Toon_Ksk

    Jul 4, 2008 at 12:26 PM

    Comment #25

    I hope the club can take legal action against reports that are untrue. This is also to rebuild the image of the club, post-Barton.

  • Steve

    Jul 4, 2008 at 12:26 PM

    Comment #26

    Course he’ll sell at 420 million – it’s like someone offering you twice what your house is worth – no matter how much I like my house I’d snap thier arm off
    Angryfan prob aint to far off the truth but as other people have said – it’s a business and we’re far removed from the days of a local chairman who actually gives a toss about the club

  • Graeme

    Jul 4, 2008 at 12:26 PM

    Comment #27

    @Angry man. In case you hadnt noticed, MA is already minted mate.

    £100 million is peanuts, he could make that in interest, sitting with his feet up on the beach.

    Cheers Prawn Sarrnies – Its not rocket science is it lol.

  • neeraj

    Jul 4, 2008 at 12:30 PM

    Comment #28

    if this story is true in any respect

    with all due respect newcastle is not worth 420 mill.
    and ashley is not a fool

    this is just a rumor…….
    we had the same rumor in feb. where it was reported shearer is going to buy the club….

    so dont pay any attention to this news….


    Jul 4, 2008 at 12:30 PM

    Comment #29

    Bill F – you may have to change your name again?? He probably has a huge EGO so what would be stopping him selling the club for £420million ?? and making £200 million in less than 18 month??? the buyer!!

  • iain

    Jul 4, 2008 at 12:31 PM

    Comment #30

    no one seems to have mentioned the fact that he could of qouted that price to quickly scare off any potential buyers as right now he doesnt want to sell.

    last thing he and the club needs is some yanks trawling through the clubs books all summer while we twiddle our thumbs and dont sign anyone only for the yanks to say thanks but no thanks.

  • Steve

    Jul 4, 2008 at 12:36 PM

    Comment #31

    Whats up with some of you

    Ashley says double my money in 18 months and you can have club! I think thats fair enough

    1 – he isn’t from toon so has no affiliation at all
    2 – he can double his money and make 200 mill
    3 – his other investments as well as sports direct share price have been hit massively due to credit crunch
    4 – he is a Spurs supporter

  • mozza

    Jul 4, 2008 at 12:36 PM

    Comment #32

    agrre craigg ,all tared with the same brush

  • Hadrian

    Jul 4, 2008 at 12:37 PM

    Comment #33

    if you trust mike ashley you have already been taken for a mug .

  • geordiekk

    Jul 4, 2008 at 12:37 PM

    Comment #34

    dont know if theres any truth in this but its strange that the company came out and said they held initial talks so somebody must have met them. it wouldnt surprise me if he does sell up same sort of scenario as then shares he bought and sold for a quick prifit how much was that 23 mil? he will do what it takes to make a quick profit no signings for much cash yet also backs this up that signing seems now like a smoke screen while he deals to sell. hope am wrong but i think he is off but will anybody pay what he wants?


    Jul 4, 2008 at 12:40 PM

    Comment #35

    Hate Prawn Sarnies, how about ” Please don’t sell us out Ash” At least not till we have won something. 🙂

  • Yahya Ahmad

    Jul 4, 2008 at 12:41 PM

    Comment #36

    Glad to see Steven Tayor has signed a new contract!

  • willowtoon

    Jul 4, 2008 at 12:41 PM

    Comment #37

    The BBC artical is from the SUN – See BBC gossip blog.

    Yanks want to buy into NUFC – Fine lets hope they are like Villa not Liverpool

    Remember NUFC were bankrupt when Freddy had it. We now are not.

    When Ash sells which he will at some point it will be to an investor who wants a return from the club. That means a successfull club on the pitch. That means no issue for me….

    On the other hand maybe Ash has deliberatly overpriced the club because he does not want to sell YET.

    Final thought maybe this has been leaked like Freddy used to do to stop the fans talking about transfers and talking about ownership again

    Everyone remember the Guernsey buy out issue every summer so we can’t possible buy players

  • Andy

    Jul 4, 2008 at 12:43 PM

    Comment #38

    I want to point out to you all one thing. There was a relatively successful SPL team that was funded by a wealthy individual. Gretna.

    I dont want Mike Ashley to splash he cash Abramovich Style. First off, He has already spent 130M on buying the club and 80 Million on clearing the debt. He was values at about 2.5 billion before he bought us of which 900 Million was cash from floating Sports direct and the rest was retained stake in Sports direct and other business and assets. In other words he has put in about 10% of his total value and about 30% of all his “cash” already. Secondly Chelsea are in a position where if Abramovich walked away, they are screwed and will need to offload all of their players.

    I want a Newcastle United that can buy its players from its own money. That is sustainable over the longer term. Do you really want a situation where if MA got killed in a helicopter crash tomorrow, that all transfers at Newcastle are put on hold because the trustees of his estate now need to authorize everything end execute his will. I dont. I want the board of directors and club management to be in a position to carry the club on irrespective.


    Jul 4, 2008 at 12:46 PM

    Comment #39

    sounds good Bill F!!

  • Jim

    Jul 4, 2008 at 12:52 PM

    Comment #40

    Whatever the truth of this is, the supporters can’t do much about it so relax. The problem is, of course, that it’s not easy to relax and this additional news acts to destabilise the club again.

    Why £420m and not a nice round £500m if Ashley wanted to discourage buyers? From the media coverage, I think this story is true and may well happen. All that’ll be left for us will be the unpleasant realisation that Yanks own NUFC!

    Whatever has and will be said about Ashley, we must thank him for turning Newcastle United from a debt ridden club of lazy b’stards in to a sound financial business that is looking to future success.


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