Reports Ashley Wants £280M to £300M for Newcastle

BBC Sports is reporting today that Newcastle owner Mike Ashley has reduced his asking price for the club from £450M to a figure in the region of £280M to £300M.

Mike Ashley – asking a reasonable £280-£300M for club

We had thought that around £270M would give Mike a decent profit of around £25M on a £145M investment in 16 months – not too bad at all – and certainly not a fire sale. If Mike actually sells at £280M he will make 24% on the deal and at £300M he makes 38%.

However, the way Chris Nathaniel has been talking, he has led people to believe the Nigerian consortium, headed by NVA management, were ready to bid £350M, just to confuse things. 😀

In these deals of course any potential buyer has to show first they have the money, and that is only the first step before several other hurdles to make sure the sale takes place. But Ashley has good experience in Keith Harris, the chairman of Seymour Pierce investment bank, handling the deal, and there were reports last night that former Chairman Mort had jetted into Newcastle.

Chris know most about the financial situation at the club, as well as being a good man.

Newcastle United are still an attractive investment opportunity, and we’ll be even better in a few years when we get back among the big boys, which we think was what Ashely wanted to do.

But then he made the strategic blunder of siding with Llambias and Wise, rather than with Mr. Newcastle – Kevin Keegan. We still cannot believe he did that, because before then he seems to have done most things right, and we think his heart was in the right place.

BBC Sports is reporting that Newcastle are attractive since St James’ Park holds 52,000 fans, with 35,000 of them season-ticket holders, and is currently valued at around £150M.

The playing squad is worth around £100M and has a wage bill of slightly over £70M, which is by no means the largest in the Premier League.

We think Newcastle are a great buy, and we hope we will know who the buyers are before the next game at Everton on Sunday.
Comments welcome.

44 comments so far

  • Kevba

    Sep 30, 2008 at 2:33 PM

    Comment #1

    alot more realistic, but still overpriced imo!! would think £250m in current state and with the current markets being what they are. Lets hope that figure is what people pay and this may interest Anil Ambani back!

  • NYCNick

    Sep 30, 2008 at 2:36 PM

    Comment #2

    Perhaps all those reported bids were coming in at closer to this figure? Can only be good news, leaving more capital for squad investment (and less in Ashley’s pockets to spend on a night at the bars).

  • Born Again Geordie

    Sep 30, 2008 at 2:39 PM

    Comment #3

    Is this a SportsDirect special discounted price ?

    lol 😀

  • WesToon

    Sep 30, 2008 at 2:42 PM

    Comment #4

    Lets Fekking hope so lads 🙂

  • toon mad tom

    Sep 30, 2008 at 2:42 PM

    Comment #5

    lmao born

  • bowburnmag

    Sep 30, 2008 at 2:44 PM

    Comment #6

    BAG – weren’t far wrong when they suggested he’d stick one of his infamous illuminous green 30%off stickers on the club.

  • Lee H

    Sep 30, 2008 at 2:44 PM

    Comment #7

    You have to be careful Sports Direct don’t give refunds, only credit notes !

  • Paul R

    Sep 30, 2008 at 2:45 PM

    Comment #8

    Green Tag Price !!

  • Neil

    Sep 30, 2008 at 2:52 PM

    Comment #9

    Hey Ed whilst I agree with most of your article to call NUFC an attractive investment opportunity (Or any other football club) is not strictly true!!
    Keep up the good work

  • The Sloper

    Sep 30, 2008 at 2:56 PM

    Comment #10

    Impossible to know what clubs are really worth, but I suppose it may be reasonable. Given Aston Villa went for just £60million, or whatever it was…and that was when the economy wasn’t as tits-up as it is now!

  • Terry Mac's Crossword

    Sep 30, 2008 at 2:56 PM

    Comment #11

    T’Hell with these Nigerian Cowboy’s! Sounds dodgy, too vocal. I’ll bet they’re just after the publicity for Rio’s xmas bloopers dvd.
    Howay Mr Ambani, show you hand.

  • Ganiyu

    Sep 30, 2008 at 3:00 PM

    Comment #12

    Enough of take over talks.this is the longest i have experienced in my life time.ashley has to hasten up an leave so that we can get a new manager a foreign one.
    Nufc can still make it to the top 6 its not too late.the squad this season is better than the previous one.all they need is team work and motivation although we av alot of dead wood

  • Danny

    Sep 30, 2008 at 3:07 PM

    Comment #13


    How can u state something like that? I hope you’re not a salesman!
    With the fans Newcastle have, with one of the biggest stadiums in the british island, with a worldclass academy, how can u NOT say its a hugely potential club, with a massive future ahead of them. Only problem about it, is how it’s currently run! And our perfect starting 11, should see us at top 6th at the end of the season.
    Get your glasses m8, i cant belive u just wrote that!
    And run the club the right way, increase its performance, get it into Europe, then by any means, if u do it well, people will see who runs it, and its a good advertisment for your own company.

  • Kash

    Sep 30, 2008 at 3:07 PM

    Comment #14

    I like the sound of the NVA (Nigerian) bid. I think we’ll soon become a source for top quality of African footballers, which may leave us short during the ACN, but I don’t mind if we had the next Eto’o, essien, drogba etc etc

  • DH7 MAGS

    Sep 30, 2008 at 3:13 PM

    Comment #15

    am hoping sheiki and ambani now come into the running now if this is the case. these 2 have the money to get us where we should be. realistically, it has to happen soon, we need the place bouncing again and the players playing like they were at the start of the season as a team. it is vital that come jan we are not in the bottom 3, otherwise we will never get any quality in at the club. but you never no, we could be in the top half, after all there is not that many points in it between 10th and 19th is there. so come on ashley, drop your price a bit more to 270m and lets get you and your bottom bandits out with you and lets move onwards and upwards.

  • Whumpie

    Sep 30, 2008 at 3:36 PM

    Comment #16

    The Nigerian bid still stinks to high heaven – too many alarm bells ringing on that one. But I can see Ashley settling for about £250M plus some results-based bonus type stuff. He may even hold onto some shares.

    My main concern is that we end up owned by people who want to run the club profitably while also appreciating the need for short-term investment to get us back on the rails. Ashley only understood half of that, which is why we’re in the brown stuff.

  • canada willie

    Sep 30, 2008 at 3:37 PM

    Comment #17

    Any prudent buyer would only offer 225 million and keep 75 million for new players.

    Anyone who thinks a club that loses money is worth more than 225 million is just plain stupid. If it was based on profits alone the club would be worth peanuts but the stadium and the players have a value.

    The club is worth less than it was when Ashley bought it and the decline in value is because of Ashley’s management mistakes. To state that the club was worth 480 million makes Ashley look stupid.

    Ashley is in a bind because he has to sell. If I were the buyer I would make sure that my offer took that into account. Which is why the Nigerian offer is garbage

    Lets hope that the buyer does not overpay and have no money for new players which are sorely needed

  • neeraj

    Sep 30, 2008 at 3:45 PM

    Comment #18

    ambani ambani ambani…….

  • I want Steve Bruce in!(GG7)

    Sep 30, 2008 at 3:57 PM

    Comment #19

    aslong as whoever takes over brings in bruce, he is the best english manager.

  • hitman

    Sep 30, 2008 at 3:59 PM

    Comment #20

    why didnt ashley not ask for this price in the first place,the club would have been sold by now,the fat greedy tw@t

  • cause I got the girth

    Sep 30, 2008 at 4:00 PM

    Comment #21

    heres a question no one is asking………who said Ashley wanted £450 million in the first place?

  • bowburnmag

    Sep 30, 2008 at 4:06 PM

    Comment #22

    cause I got the girth – is that you owning up?

  • I Made 1000

    Sep 30, 2008 at 4:08 PM

    Comment #23

    well that means i can place my bid now lol, oj, i wish lol

  • Kash

    Sep 30, 2008 at 4:11 PM

    Comment #24

    Simple FACT – A premiership football club CANNOT be run as a massively profitable business. The income stream is too risky and the return on equity is far too low.

    The only reason anyone will want to buy the club is to boost other complimenting businesses!!!

  • Dondatta13

    Sep 30, 2008 at 4:17 PM

    Comment #25

    Im suprised that we (NUFC) don’t even have our own TV channel …

    I hope any new owners will address this after stocking up on the 1st team squad

  • Lokes

    Sep 30, 2008 at 4:25 PM

    Comment #26

    If im a buyer having 280mil as budget, i’ll prefer buying clubs like aston villa and everton.
    It wont cost me more than 100mil, and there will 180 mil to boost the squad. Imagine 6 robinho or 10 martins!
    Haha silly thought!

  • Lokes

    Sep 30, 2008 at 4:28 PM

    Comment #27

    I mean 18 martins

  • Newckie

    Sep 30, 2008 at 4:29 PM

    Comment #28

    Well summarised ED.

    canada willie – totally agree with your comments.

    We don’t need any Chinese property developer either as much as we need to desperately get our house in order I would not trust either for one second.

    We had dodgy inc with Fat Fred and Ashley’s absolute shite appointments after Chris Mort who was and is a good bloke and very transparent which is far more than I can say about Llambias and Wise who have had sod all transparency.

    We don’t need all the negative spin by scumbag low life like tribal football either. I have yet to see these morons print anything positive about Newcastle at all. They claim to represent the fans – What a load of CRAP!

    Anyway, rant over. Let’s hope we get a honest buyer that can throw some serious money in the kitty, get over all these very annoying injury list and get the players earning their money. Christ on a bike, they get paid enough!!!

    Keep up the good work Ed It is very much appreciated.

  • Dan13

    Sep 30, 2008 at 4:39 PM

    Comment #29

    Well said Barry

  • Turkish magpie

    Sep 30, 2008 at 5:00 PM

    Comment #30

    the good thing is the nigerians will give us 75m for summer transfer window and 30m for january transfer window so we can sign some players

  • skin d

    Sep 30, 2008 at 5:06 PM

    Comment #31

    howay anil ambani step in please to stop the nigerian bid!!!!

  • troy stavers

    Sep 30, 2008 at 5:10 PM

    Comment #32

    Don’t hold your breath! I still don’t believe any of these bids are seriously gonna be near Ashley’s new asking price. They have him over a barrel. He knows it will not come off and he is intending to stay and see the storm blow over. Kinnear was brought in as a long term manager not an interim one. All this talk of KK and Shearer returning by Kinnear was set up by Ashley to appease the baying crowd. (don’t like to use the word mob cos in this case the so called mob are right). Don’t fool yourselves ladies and gents, I would peel off the “ev” from your King Kev shirts and use it while King Kinnear remains in the long term. You can always stick them back on if i’m wrong, but I don’t think so.

  • The Sloper

    Sep 30, 2008 at 5:12 PM

    Comment #33

    There is still little proof, apart from the quotes from the “UK-based representative” of the Nigerians, that any bid exists anywhere outside of the mind of Mike Ashley…

  • Geordie Jayne

    Sep 30, 2008 at 5:19 PM

    Comment #34

    One thing I do hope after this saga is over and done with, is that Lam-bi-arse gets what is coming to him, as their is no coincidence that since he joined the club every thing went out of control.

    I mean just look at the idiot, when he is watching the Toon he is not interested in the slightest, I for one believe after reflection that he is the main culPRAT in all of this, although Ashley should have not sided with his friends, he should have put NUFC first, second and last, after all the quick profit he will be making is thanks to NUFC and yes it’s FANS.

    No I am not an Ashley fan but if you think about the timing of everything, Lam-bi-Arse’s finger prints are all over it.

    Let’s hope the future is Black and White

  • Geordie Jayne

    Sep 30, 2008 at 5:21 PM

    Comment #35

    TheSloper – I have to say I have thought about that too

  • clarenufc(:

    Sep 30, 2008 at 6:06 PM

    Comment #36



  • Carlos V

    Sep 30, 2008 at 7:10 PM

    Comment #37

    God I really hate that photo of Ashley, you just want to give him a big knuckle butty.

  • ruddster

    Sep 30, 2008 at 7:24 PM

    Comment #38

    sky sports also reporting that of the 7 interested parties talking to newcastle none are from Nigeria or South Africa,now theres a suprise

  • micepie

    Sep 30, 2008 at 8:23 PM

    Comment #39

    Very intriguing to wonder about who might buy the club, especially if none of the reported Magnificent 7 are Nigerian! Maybe Eskimoes will buy us and re-build the stadium entirely out of ice during the winter then when the Spring comes the stadium melts and the press laugh at us! Anything’s possible at the Toon!

    It’s exciting on the one hand, though it’s also kind of disappointing that a British owner’s plans for us didn’t work out. At least it would go against the grain of modern clubs being bought by foreign businesses. But let’s see what happens anyway. Any new owners should decide whether they want a manager/coach to have complete control of transfers, some say or little say and make it clear from the offset to avoid embarrassment and confusion later.


    Sep 30, 2008 at 9:14 PM

    Comment #40

    Skid D – (31) hope so!! haven’t hurd anything for a while! although it was said he was interested in Everon! it would cost more in the long run! + Her so many good thing about this man and his style of business! and I believe if true that he is a fan!! would be nice to have the 6th richest man in the world owning the club!


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