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.