Ashley Needs To Lower Price to £250M Range – And Sell

The News Of The World is reporting today that Mike Ashley will not be forced into a quick sale of Newcastle United.

Mike Ashley – asking too much for Newcastle

Certainly the global credit crunch has not helped Ashley sell Newcastle, but he also seems to be asking too much for the club at around £300M, which is an enormous profit of £55M for Mike, at a time when credit is simply not available. And he’s only owned the club for 15 months.

But the NOTW says that the owner has told friends he is prepared to sit tight if he doesn’t get the offer he wants for the club. There is some confusion about whether a deadline exists to have offers in for the club, but reports have said it’s this coming Friday.

We’ll see if anything transpires after that date, but some reports say Mike has two serious investors who are interested – we have no idea if that’s true though.

But one thing Mike doesn’t have at the club is time, and if he does try to hold out, then it’s certain the fans will rise again in their protests, because the de-facto agreement was that he would sell the club at a reasonable price, but not a fire-sale.

Surely in these circumstances, getting his money back should be acceptable to Mike. In normal circumstances he could wait, but these are hardly normal circumstances with the club on its knees.

It’s now hard to see investors shelling out £300M for a club they know Mike has invested just £245M in, and reports from Dubai have suggested he could have sold last week for around £250M, and at least got his money back.

If these reports are true, we doubt if he’ll really be able to hold out for too long, because the mood on Tyneside, is that he needs to leave, with the club in a calamitous situation, which can only be rectified with new owners coming in, and yet another fresh start.

Ashley has been warned he will struggle to find any investor ready to meet his £300M asking price in the current financial turmoil – so we wonder why he wouldn’t drop his price to £250M, or at least in that range, and get a deal?

Comments welcome – but please keep them decent – thanks.

22 comments so far

  • skin d

    Oct 12, 2008 at 11:21 AM

    Comment #1

    lower your price ashley,and f##k off!!!.

  • brownrob

    Oct 12, 2008 at 11:22 AM

    Comment #2

    I think this is just a way things are done in business, he is setting the asking price high as the selling price will always be lower due to haggling… If he said that he wanted 250 at the start he could be haggled down to 200 and take a loss, or to some dismay to some supporters he would keep it on…

    So to the clowns that wanted him out, for once in your lives, have some patience, its not like buying a fish supper for your dinner every day, these things take time… and the man should get what he paid for, but thats why he put the starting price up high….

    So start having a bit of sense people… no wonder the gutter press find the Toon such an easy target…

  • Ausgeordie

    Oct 12, 2008 at 11:22 AM

    Comment #3

    Tough call. He wont spend money in Jan as it does him no good but if by that stage the club is in a dire situation re the ladder he will have to sell or risk the value of the club going down massively due to relegation or threat of. Hopefully he sells soon and gives the new manager a month or two to get to know the current squad and then he can look for areas to bolster the team in Jnauary

  • cause I got the girth

    Oct 12, 2008 at 11:23 AM

    Comment #4

    NOTW = complete dump!
    Please dont post blogs on what they say Ed, it makes your opiion sound a bit silly frankly!

  • brownrob

    Oct 12, 2008 at 11:23 AM

    Comment #5

    skin d illustrates my point perfectly… :/

  • Dan13

    Oct 12, 2008 at 11:23 AM

    Comment #6

    Will you stop bloody posting the same article!

  • John(indian toon)

    Oct 12, 2008 at 11:25 AM

    Comment #7

    MA NOT EVEN UR FATHER IN LAW WOULD HAV GIVN U 300 MIL, SO BETA SELL IT 4 250mil, or ul get ur ass kikd by da toon army an wl b forced 2 sell da club 4 200mill.

  • Nick

    Oct 12, 2008 at 11:35 AM

    Comment #8

    No s..t sherlock!!!
    But he doesn’t need to, so won’t. next !!!!!

  • jules

    Oct 12, 2008 at 12:50 PM

    Comment #9

    All speculation, no one knows what the club is up for sale for in terms of its price. I dont believe anyone knows if there is a deadline.
    We wont’ hear anything until it happens.
    Just another ploy to sell Newspapers

  • MAF

    Oct 12, 2008 at 1:35 PM

    Comment #10

    Hormel Foods to buy Newcastle.

  • Stamford Toon

    Oct 12, 2008 at 1:39 PM

    Comment #11

    Pure speculation on figures. Nobody know all the costs incurred by MA, or the costs of selling, So how can you tell him what he should sell the club for? Nobody know what he is asking and nobody knows the deadline or how far negotiations have gone. You’ll just have to wait and be patient. I see no reason why he should not make a profit and certainly no reason why he should sell at a loss.

  • Paul

    Oct 12, 2008 at 1:48 PM

    Comment #12

    “But one thing Mike doesn’t have at the club is time, and if he does try to hold out, then it’s certain the fans will rise again in their protests”

    Oh yes, potential buyers will really want to see an unruly mob demanding the exit of the current owners again. They would just love to buy a club held to ransom over a silver haired timebomb who may want to return at any minute. Why would they want to buy a less problematic club such as Everton when they can have all that excitement? Keegan and his acolytes are just ripping this club to shreds.

  • ryan peacock

    Oct 12, 2008 at 1:49 PM

    Comment #13

    does anyone think JIMENEZ AND WISE will go to charlton? werent they spotted there two weeks ago?

  • Phil,Gosforth

    Oct 12, 2008 at 3:10 PM

    Comment #14

    Skin D may be a bit abrupt but he is correct.
    Simple fact is,the Arabs have said he’s taking the p*ss,so he must be.
    The Arabs have analytsts who have already valued every premiership club they have an interest in,they KNOW what he paid and they KNOW what it’s worth.

    The only person holding things up is MA and his unwillingness to ask for a reasonable price.He can ask for a bit of profit,that’s fair enough but if his price was fair,it would have been sold.

    So don’t call others who wanted him out,myself included,”clowns” when it’s obvious MA is the one with a red nose and size 19 shoes on.Oh,and you.Clown.

  • hitman

    Oct 12, 2008 at 3:59 PM

    Comment #15

    well said phil,ashley is the problem,his asking price is to high,hes a fat money grabbing cu*t,he dosnt care who he sells to as long as he gets the highest price,ashley needs his neck stretched.

  • skin d

    Oct 12, 2008 at 4:31 PM

    Comment #16

    brown rob granted the papers talk s##t,but anil bouryl has stated that if ashley dropped his price the club would be sold on the spot.
    the talk in the middle east is newcastle is a desirable club for the right fatty arbuckle is definatley taking the slash.
    the longer ashley holds out the worse it is for the club,fans etc so stick your fish supper up your jacksy.

  • Thump

    Oct 12, 2008 at 5:08 PM

    Comment #17

    Dan13 // Oct 12, 2008 at 11:23

    Will you stop bloody posting the same article!

  • happy toon

    Oct 12, 2008 at 5:11 PM

    Comment #18

    come ashley….put the club on ebay, start bid £99.99….

  • chuck

    Oct 12, 2008 at 5:37 PM

    Comment #19

    Are you Warren Buffet in disguise ?
    Bit presumptuous of you Ed.
    As for the rest of the posts, pure speculation, give it a rest.
    The mob has succeeded in hounding the man out of town, enough allready !

  • Toon_Ksk

    Oct 12, 2008 at 5:44 PM

    Comment #20

    I’m still not buying anything from Sports Direct.

  • Knownowt

    Oct 12, 2008 at 6:27 PM

    Comment #21

    We are told that Ashley paid 134 million for the club and that is easy to confirm. However he claims that he paid out an additional 120 million (or so) to clear off debts. Unless I’ve missed something, I’ve never seen anything to identify exactly what these debts are. We apparently have to take his word for this. There has also been a suggestion recently that he didn’t actually pay off these debts but underwrote them. I’m not sure what this means but I’m sure the more financially aware among you can enlighten me. However it was suggested that potential buyers were taking this into account when deciding on their purchase price. Perhaps Ashley is trying to gain a bigger profit than his previous figures indicate.

  • Paul

    Oct 12, 2008 at 10:37 PM

    Comment #22

    Knownowt. It was the lease on St James’, leveraged debt on old tranfers etc etc. Shepherd and Hall left the finances of the club in a shocking state, and payed themselves huge dividends instead.


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