The Sunday Sun is reporting today that former Chairman Freddy Shepherd is in talks with investors from the USA and the Middle East – who have plenty of money to meet Ashley’s asking price – or so we are told.
Freddy Shepherd – in talks with financial investors
But do we really want Shepherd back as Chairman? That would be like going from the frying pan into the fire – again.
We assume Freddy doesn’t think that if Newcastle get relegated, he’ll be able to pick up the club for a low price of around £90M, which would be what they are worth – because Ashley will simply not sell and lose over £160M in the deal over less than two years.
It’s like if you buy shares for £100 and they drop to £30 – if you don’t sell you don’t lose – and hope the stock will go back up in price as they usually do. It’s the same thing with Newcastle as far as Ashley is concerned. It’s a huge investment of £260M for him.
While Freddy may think (more likely hope) Ashley will sell – he’s not that daft.
Good businessmen just don’t participate in that kind of financial suicide – that’s only one reason they are good businessmen.
A spokesman “on the inside” said:
“Shepherd and his fellow investors have been closely monitoring Newcastle’s position, and know there would be two prices for the club, depending on whether they stay up or go down,”
“But the people we are talking about would be able to finance a deal given either scenario.” “And their intention is to provide funding to keep Alan Shearer at Newcastle.”
“The people Shepherd has spoken to are in a different financial league.”
Of course if we do go down, which now seems more than likely – Ashley will have his own significant problems, and if he is not willing to support Shearer in what he wants to do – Shearer will leave and Ashley will be forced to get out of Toon by the Newcastle supporters.
He’ll not have much choice – because he will be seen as having decimated a proud club within two years, by his total ineptitude at running a football club. Books will be written about it.
However, we will take this story about Shepherd and his financial backers, with a rather large pinch of the old salt.
So Alan will have a decent negotiating advantage with Mike – and news of a takeover could apply the necessary pressure on Ashley to do the right thing.
The right thing after all – is what’s best for Newcastle United.