Announcement Of Newcastle Buyer Getting Closer

There are still seven parties officially interested in buying Newcastle United, but only three have shown evidence that they are in a financial position to significantly improve the famous Tyneside club.

Those are large consortiums that according to Keith Harris, Chairman of Seymour Pierce investment Bank, who are handling the sale for Newcastle and Mike Ashley, are based in the United States, the Middle East, and the Far East.

The three are said to be ready to bid around £300M for the club that Ashley has paid £245M for over the last 15 months. That would give Ashley a £55M profit or just over 22% on the deal. A good deal by any standards.

South African Jonathan Cleland is said to remain hopeful of doing a deal for Newcastle United with a group of South African businessmen but earlier this week Harris said there had been no serious bids from either Nigeria or South Africa.

We have no idea who the American interest is, but a couple of years ago a Polygon backed St James’ Park Group were said to be interested in buying the club. With the terrible state of the banking system in the US, we’d be surprised if a US based consortium had the money right now to buy the club.

The Middle East buyers could one from quite a few parties who have expressed an interest, but a prominent one is Kuwait tycoon Nasser Kharafi, the 48th richest man in the world.  Nasser Al Kharafi and his company controls the exclusive Arab franchises for KFC, Wimpy, TGI Fridays, Cadbury’s, Pizza Hut and Saint Cinnamon.

As far as the Far East interest goes, we have been linked with Chinese property billionaire Xu Rongmao, who is reported to have plans to expand St James’ Park and redevelop the surrounding area. There are 10 billionaires in China, and he is one of them. Xu is the chairman of the Shimao Group, which controls land in America, and builds luxury real estate projects.

We were led to believe yesterday by Joe Kinnear, who got his information from Managing Director Kevin Llambias that Friday was the date when all bids were expected to be placed for Newcastle, and that it was an important day in the sale of the club. We hope what Joe says is true because it would mean the sale is moving ahead quite well.

We assume the next step is that we’ll hear from Keith Harris, as to who the winning consortium is.

If we can get that information within the next week say, it will remove lots of uncertainty surrounding the club, and then we’ll need to hear from the new owners as to who they want as their new permanent manager, and what their long term (and short term) strategy for the club is.

If that can be done withing the next week the sale should be completed, following five or six weeks of due diligence, by the early December timeframe, and we’ll be ready to invest in the transfer market in January, which promises to be an exciting time for Newcastle fans everywhere.

And hopefully the club will be on an upward spiral once again – and that would be very good.

Here’s hoping – comments very welcome.

18 comments so far

  • Ganiyu

    Oct 18, 2008 at 11:39 AM

    Comment #1

    Good news.hope kinnear makes an impact to qualify him for permanent management.

  • UTD111

    Oct 18, 2008 at 11:43 AM

    Comment #2

    Good summary Ed – here’s hoping :o))

  • mr_flibbles

    Oct 18, 2008 at 11:44 AM

    Comment #3

    Kevin Llambias again Ed? Are you using the kevin to take the mick out of him or do you really now believe his first name is indeed ‘Kevin’.

    I have to admit it has been most difficult to support the club since the whole Keegan-Ashley-Wise affair died down. Our aim for the season went from trying to get into europe and dramatically improve the football on show, to now what I firmly believe is a relegation struggle, I think we will get sucked into it and will rely on a few teams doing poorly like last year. I do remember when west ham went down then went down on 42 points. If its one of those then newcastle are in big trouble.

  • Leo

    Oct 18, 2008 at 11:49 AM

    Comment #4

    derek i think not kevin lol

  • Lokes

    Oct 18, 2008 at 11:55 AM

    Comment #5

    False tittle

  • Cyprus-Toon

    Oct 18, 2008 at 11:59 AM

    Comment #6

    This article is just a repost of everything else that’s been written in the last month, nothing new there to say who’s who & not one hint of who may take us over & if they will or not, so what if there are 7 interested parties, who says any of them will want all the shite that’s gone on, they may think the fan base is too much to handle & not want to have the same crap MA has taken…
    I’m not gonna believe any more of this junk until it’s posted on the OFFICIAL NUFC site or said live on SSN by the new owners….. 🙁

  • Obafan

    Oct 18, 2008 at 12:00 PM

    Comment #7

    I’ve got a sneaky feeling that Ambani is one of the interested parties. Don’t ask me why it is just a feeling.

    To be honnest I only hope that the new owners want:
    1. to invest in players (but not overinvest like Shepard)
    2. to communicate with the fans so they know what is going on
    3. to search a manager who is given the time to build something in a couple of years time (not constantly changing like in the past)
    4. to open up the contracts of Owen and Martins, cause those are 2 of our key players.
    5. to invest immediately in the January window, like JK said we defo need 5 quality players
    6. to get rid of the dead wood (Smith, Viduka, …)

  • Nobby's Dad

    Oct 18, 2008 at 12:34 PM

    Comment #8

    Not one to defend Ashley – but if he’s paid off about £110 million of debt he’d get interest in a year of about £10 million on that if invested – so this reduces the amount he’s making.

  • cause I got the girth

    Oct 18, 2008 at 12:53 PM

    Comment #9

    bloody hell man Ed, this reads like a fairy tale…..and they all lived happily ever after!!! Bit repetitive, useful information……to someone who has been living in a cave for the past month! Heard it all before and though i agree things will be happening soon, but since we have had to put up with so much drivel from the tabs, like cyprus_toon, ill be waiting for an official statement!!

  • Ageordiedoonsooth

    Oct 18, 2008 at 1:04 PM

    Comment #10

    Mr Flibbles True supporters support the team through thick & thin (or with the Toon through Thin & Thinner) no matter who the owners are, what sh*t is happenning away from the pitch, or what division we play in. I’ve supported them for 53 yeras and most of those have been very difficult but their in my blood

  • skin d

    Oct 18, 2008 at 1:10 PM

    Comment #11

    propaganda bollox we,re probably not being sold.

  • Stamford Toon

    Oct 18, 2008 at 1:33 PM

    Comment #12

    Ed; You are forgetting the costs involved in selling the club. Harris’s commission, legal costs etc will reduce considerably MA’s profit. I don’t suppose either that anyone knows exactly the amount of money that MA has put in, we do not have access to the facts.

  • bod

    Oct 18, 2008 at 4:30 PM

    Comment #13

    not being funny but we said all this crap when ashley took over about exciting times ahead and we are gonna do this and gonna do that i would just tell people to sit back and just wait if u build up your expectation we could be set for another fall

  • sirjasontooon

    Oct 18, 2008 at 8:17 PM

    Comment #14

    These buyers need to have deep pockets…no more pretend billionaires we need a clear out and a good spend..far too many toon players have taken the pi$$ I don’t need to mention any names.

    Ganiyu shut up you fool.

  • jimbob

    Oct 19, 2008 at 12:06 AM

    Comment #15

    Newcastle have to give managers time and money or they will never be able to compete with the big boys

  • jude

    Oct 19, 2008 at 7:18 AM

    Comment #16

    … F***ing what?!!!??


  • Archie Brand

    Oct 19, 2008 at 9:42 AM

    Comment #17

    Oh dear Ed.

    It looks like optimism is in short supply on tyneside and you’re getting the brunt of it.

    I think your being a bit niaive thinking they will choose a buyer inside a week.

    I’d just like to say “A Job Well Done” to Dennis Wise.

    He’s got shot of Keegan, forced Ashley to sell, Jiminez has quit, and now his transfers are starting to look a bit suspect with Guiterrez’ old clubs asking for compensation.

    Well done son. You must be really proud.

    Any chance we could get him a job with Sunderland?

  • JJ

    Oct 19, 2008 at 1:29 PM

    Comment #18

    Nobby’s Dad, Ashley would also have lost that 10Mil had he not paid off the debt, so that arguement is not valid.


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