Mike Ashley has supposedly dropped his asking price for Newcastle United to around £280M, and that will give him only a £35M profit (14.2%) on the club in 17 months.
Life’s tough isn’t it?
Michael Owen – can talk to other clubs in January
This is reported today in the News Of The World, which usually has little credibility in these things, but we do expect the race for the club to be tightening, and understand that Keith Harris is negotiating with some consortiums right now.
One that we think is in there is the business run by Arab Billionaire Nasser Al-Kharafi, but the NOTW doesn’t list him as one of the two consortiums they say are the current front runners.
Kharafi is Chairman of M.A. Kharafi & Sons and the company puts fast food on plates across the entire Middle East, and his company controls the exclusive Arab franchises for KFC, Wimpy, TGI Fridays, Cadbury’s, Pizza Hut and Saint Cinnamon. Al-Kharafi is also the leading supplier and integrator of the newspaper industry in Kuwait.
We think that is one of the three consortiums still in the running, but the NOTW says that the two who are closest is one is based in China and the other an international company based in America.
It’s interesting that in the last month the US dollar had significantly strengthened against the pound to $1.58 to the UK £ – and this is from around $2 to the UK pound, only a month or so ago. That means the Newcastle club has come down in price by about 20%, solely because of the strengthening of the dollar.
We have no idea who the American buyer unless it’s Paul Allen, the co-founder of Microsoft with Bill Gates, and a sports fan who owns the Portland Trail Blazers (basketball) and Seattle Seahawks (American Football).
Paul Allen – Microsoft co-founder worth $16B (around £10B).
Paul left Microsoft way back in 1983 to fight Hodgkin’s disease, and he was successful in beating that disease.
The Chinese consortium could be the Chinese property billionaire Xu Rongmao, who is the Chairman of the Shimao Group, which controls more land than any other private developer in America, and builds luxury real estate. Rongmo was born in the Fujian province of China. He is currently 58 years old and the 9th richest person in China at around $3.1B (around £2B), and seems he have lost an awful lot of money due to the property value collapse in the US this year. Last year he was worth around $10B (£6.3B).
But the Newcastle club must get a new owner in before January, otherwise we stand to lose players like Owen and others, who will not wait around too much longer, as the club resembles a ship adrift in the ocean. Nicky Butt, Mark Viduka, Steve Harper, Shola Ameobi, Cacapa and David Edgar all running towards the end of their existing contracts at the club.
It’s also vital we have new owners installed so we can participate in the January transfer market because our squad is at least 5 players short, according to current manager.
We are waiting to hear from Keith Harris, who is the only person we can trust on this, since he is selling the club on behalf of the club and Mike Ashley. We hope to hear something later this week, as time is now starting to run out as we get closer to January.
Comments very welcome.