Local Consortium Asks For Due Diligence On Newcastle’s Books


Some potential good news for Newcastle United fans this morning – and this time it’s could be really good news.

alan-shearer-dowie

Dowie and Shearer – the new long-term leaders at Newcastle?

The Mail-Online is reporting a consortium made up of wealthy local businessmen, and backed by Middle East investors, has asked for due diligence on Newcastle United.

That is really good news and of course they are hoping to get a deal with Mike Ashley for around £90M.  We had heard before of a local consortium trying to get money together.

This is from the Mail and we cannot validate whether this is true – but we have to hope it is, becasue it seems exactly what Newcastle fans want and need.

As far as we know Freddy Shepherd is not involved in the consortium in any way.

The good news is that the consortium are reported to have already spoken to Alan Shearer, and want him as the manager at the club. Well, that’s good, and news that his wage demands will not be a problem, and they are expected to be £3M/year.

We always thought it was strange that Ashley balked at the wages (if he indeed did) – because Alan, to compensate, could move more of the high wage earning players out of the club, since we will hardly miss any of them, and most of them deserved to be kicked moved out.

Ashley could have put a wage limit on the squad to compensate for the extra wages being paid to Alan and his staff.

But there’s no doubt too, that those wages are sky high for a Championship manager, untested and with no experience,  and expectations with those wages will be very high, but we know Alan being Alan, his own expectations on himself will also be sky high. Nobody will be more motivated than Alan Sheraer if he gets this job.

As we reported yesterday Shearer has gone to Portugal for a short break, and will be back on Monday and he, just like the Newcastle fans, are chomping at the bit to see some action at the club this summer. It’s been two weeks since we were relegated and the club has made no progress on anything,  with players not knowing if they are coming or going.

The good news is it seems a number of our transfer  targets are only too willing to join Newcastle, and that has raised the mood – just a little – of the Geordie fans  as they are still getting to grips with the tragedy and embarrassment of Newcastle being relegated.

The timeline we were told last weekend, was for the books to have been inspected in great detail by Barclay’s, and by yesterday a decision made on whether the plans put in place the week before were seen as viable by the bankers. If they werre then that presumably meant that Alan Shearer would be appointed manager of his home-town club – and hopefully a new era of succes could begin at the club.

But that didn’t happen (surprise, surprise), and it looks like there are two barriers why Mike is not appointing Shearer.  His wage demands will be one, and his £20M transfer chest will be another.

But Ashley has already stated he is willing to sell the club at a loss, for around £100M, and we really hope he’s not dithering yet again, on taking that loss – which is huge of course.

We also expect the consortium will come with the up-front transfer funds for Alan, but they must know it is potentially a fantastic deal, because with any luck Newcastle will be back where they belong, in the Premiership within a couple of seasons – if all goes well.

But the consortium will also know, because of the local people involved if nothing else,  that time is of the essence, because every day ticking by is another room burned, and is a loss to Newcastle in their preparations and rebuilding for next season.

We should be no mistake about that.

But if we can see Alan appointed fairly quickly – things will immediately pick up, as we reported in our “good news” article yesterday, because we believe he already has quite a few deals stacked up – not to mention his back -room staff coming in.

All he needs now is an owner who understands what he is trying to do, and backs him to the hilt.

Comments always welcome.



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111 comments so far

  • ian

    Jun 6, 2009 at 9:31 AM

    Comment #1

    This is true, I heard about this on wednesday, however I did not know that there would be a Middle East involvement, I hope they manage to pull it off, now we will see if ashely is fair and can cut a good deal or will act like an a**e and mess the whole thing up again.

    This definately is true I can assure you.

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  • ChrisToon1988

    Jun 6, 2009 at 9:32 AM

    Comment #2

    Sounds good:D ….. but it’s from the mail and you know how much they hate us 🙁

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  • ChrisToon1988

    Jun 6, 2009 at 9:33 AM

    Comment #3

    🙂 *

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  • ian

    Jun 6, 2009 at 9:34 AM

    Comment #4

    Ignore the fact it is from the mail, I am local and I heard about this from a top source, this is happening it depends if they can pull it off or not which is the concern.

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  • Toon Graeme

    Jun 6, 2009 at 9:40 AM

    Comment #5

    Im sceptical – well you cant blame me can you!

    According to NUFC.com season ticket renewals are being sent out next week – which again indicates that something money wise must have been sorted and guess what – NO PRICE REDUCTION – apart from what was advised in feb by the club.

    So in effect we are still gonna pay over the odds compared to the majority of championship clubs.

    That is bye the bye as the support and seing bums on seats is what is important to me.

    Lets hope this is true – I pray to god it is.

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  • Ericles

    Jun 6, 2009 at 9:46 AM

    Comment #6

    I am sceptical too but have fingers crossed. Prefer kicked out to moved out Ed. I hope something positive comes of this especially because it is a local consortium minus Freddie it seems. The positive sign is that Shearer is to be boss if this happens. A request for due diligence suggests there is more fire than smoke too. Again – it is wait and see. What a weekend!!!!

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  • ian

    Jun 6, 2009 at 9:49 AM

    Comment #7

    Honestly this is definately true, I heard about it on Wednesday, I do not know how the Mail got hold of it unless they have someone local or one of Ashley’s mob leaked the story, they want the deal done quickly but they need the club at the right price and enough financial backing to get the club straight back in to the premiership, now it is up to Ashley, which could be the problem but I havent heard there is one ….yet.

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  • ian

    Jun 6, 2009 at 9:53 AM

    Comment #8

    PS you wont have long to wait so you could hold off the tickets for a week, there were reports elsewhere of money being taken from the club by Ashley, hopefully all of that has already been sorted before this diligence and it is all straight forward, very exciting if it comes off. At least they are all Newcastle Fans.

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  • Toon Graeme

    Jun 6, 2009 at 9:57 AM

    Comment #9

    I got a half season ticket this year – does anyone know if I will be invited to renew in full?

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  • Dennis Twice

    Jun 6, 2009 at 9:59 AM

    Comment #10

    Thank you Ashley!

    Striker John Carew believes Aston Villa’s record signing James Milner has lived up to his club record £12million price tag.

    Milner has been rewarded for an excellent first season at Villa Park by being named in the England squad for the World Cup qualifiers with Kazakhstan and Andorra as a replacement for the injured Michael Carrick.

    Kind Regards,

    Coco-Colo

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  • Rangerman

    Jun 6, 2009 at 9:59 AM

    Comment #11

    There are not that many rich businessmen in the North East so it’s a worry if they have the money to push us on or not, the supposed backing by Middle East investors doesn’t make such sense as if they wanted it then surely they would by it themselves?

    North East rich list – http://www.journallive.co.uk/north-east-news/uk-news-world/2009/04/25/sunday-times-rich-list-shows-credit-crunch-hit-north-east-tycoons-61634-23468981/3/

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  • Toon Graeme

    Jun 6, 2009 at 10:02 AM

    Comment #12

    Ian – are you Ian Dowie? 🙂

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  • ian

    Jun 6, 2009 at 10:05 AM

    Comment #13

    Lol No not Dowie!!

    Rangerman I knew nothing about the middle east part, however i did know they were struggling to get together enough money to get us back up, either they found another NE person to go in, or possibly went to the Middle East for a silent partner??

    One thing is for certain they are fans and they want us back up, also they are likely to make a big fat profit if they float the club once up too.

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  • ian

    Jun 6, 2009 at 10:07 AM

    Comment #14

    The people involved are more than rich enough to buy us and keep us a championship club, that is not their aim, they want it all concluded this weekend , but knowing Ashely it will drag on.

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  • Alex

    Jun 6, 2009 at 10:08 AM

    Comment #16

    ian
    How did you hear all this , are you maybe part of the consortium ? 😉 . Normally i do not belive rumors untill something is officially brought out , but i think this one is true . Maybe they will go through the books in a hurry , so as to speed things up and get the deal done early next week and that is why we have heard nothing about Barcalys bank and the appiontment of Shearer . The dream senario is that it will happen , if not then lets pray that the bank gives the green light to the buisness plan and Shearer is appointed by Wedensday

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  • Rangerman

    Jun 6, 2009 at 10:09 AM

    Comment #17

    One thing is for certain they are fans and they want us back up, also they are likely to make a big fat profit if they float the club once up too.

    ………

    Either they want the club because they are fans or they want it to make a big fat profit.

    I can’t say I’m enthusiastic about being taken over by a consortium that are struggling to even raise the £100 million to buy the club.

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  • jonny_rubber

    Jun 6, 2009 at 10:10 AM

    Comment #18

    It sounds like more media tripe to me.

    I will file it next to the nigerian consortium, the omani group, the dubai consortium, freddy shepherd, the mega rich indian bloke…..etc etc etc

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  • ian

    Jun 6, 2009 at 10:16 AM

    Comment #19

    They arent struggling to raise the money for the club, they want more than enough funds to get us straight back up, remember Ashley in his daft cost cutting moves, added long contracts to players we do not want, we have to cover these and have enough money in the kitty to buy a decent premiership squad next year, plus I am not privvy to their years plans, they may (I hasten to add again do not know) keep some expensive players during the season all of which will take millions above the price of buying the actual club.

    Trust me they are trying to make this happen, it is down to Ashley.

    There is nothing wrong with these owners getting us back up and make money in the process, some of them will want an investment return.

    But the club value would rise from £90m to around £300m+ if they got us up then bounced us up to mid table.

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  • ian

    Jun 6, 2009 at 10:18 AM

    Comment #20

    Alex I am not part of the consortium, not in the league I am afraid!

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  • Rangerman

    Jun 6, 2009 at 10:23 AM

    Comment #21

    So they can raise the money to buy us but they don’t have enough money to get us very far? That doesn’t sound promising.

    Another point is you’re saying that they are fans yet also say that they can float the club for a big fat profit, if that’s the case then they can’t have the interests of the club at heart if they are thinking of cashing in in 12 months.

    Who are these players Ashley signed on long contracts as cost cutting btw? I can only think of Ameobi and that is so he’s got some re sale value if we were to move him on in the Summer.

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  • ian

    Jun 6, 2009 at 10:29 AM

    Comment #22

    You do not have to believe me Rangerman, just wait and watch the news.

    Also you arent daft you know the other players given stupid contracts they have been spoken about enough on here.

    I am excited but from all of the other people’s dealings with Ashley would not be surprised at all if he hacked some of them off, some of them will not suffer fools so let us hope Llambias and Ashley manage for once to do a straightforward deal.

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  • jonny_rubber

    Jun 6, 2009 at 10:30 AM

    Comment #23

    hows this from the northern echo

    Ashley, the Magpies owner, spent part of this week attempting to raise the necessary funds for a short-term cash injection that would have secured Shearer’s swift return to the St James’ Park manager’s office.

    Both parties had hoped the terms of Shearer’s contract could have been agreed before he took his break but any deal has been left in limbo, with Ashley left pondering his next move.

    Unless he can secure financial backing to bankroll Shearer’s plans for next season, Ashley may be forced to re-appoint Joe Kinnear as a short-term replacement.

    Keith Harris, the man charged by Ashley to find a buyer for the club, has so far drawn a blank. Harris, the chairman of investment bank Seymour Pierce, flew to Dubai at the start of the week but with no bidders forthcoming, Ashley is also believed to be still considering the option of placing the club into administration.

    dark days ahead

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  • Geordie-Gerrard7

    Jun 6, 2009 at 10:31 AM

    Comment #24

    Duncan Bannatyne- could he be one? i was just thinking, that bloke is into his sport and always willing to compete with anyone else and isnt that theo bloke owner of milwall

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  • hitman

    Jun 6, 2009 at 10:31 AM

    Comment #25

    Guess who’s back, back again freddys back, tell a friend Guess who’s back, guess who’s back,guess who’s back, guess who’s back,guess who’s back, guess who’s back,guess who’s back…Now this looks like a job for meSo everybody just follow me’Cause we need a little controversy,’Cause it feels so empty without meI said this looks like a job for meSo everybody just follow me’Cause we need a little controversy,’Cause it feels so empty without me.

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  • Ericles

    Jun 6, 2009 at 10:34 AM

    Comment #26

    Concerned about Ashley’s role in this dealing. For me he is a spiv and a wide-boy who will cream the club before he sells at a so-called loss. The Ashley’s of this world do not sell at a loss. His type screw people not the other way round. Hope there is a local consortium that can get things moving with Al in charge and Geordie backsides back on St James seats.

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  • Rangerman

    Jun 6, 2009 at 10:35 AM

    Comment #27

    Also you arent daft you know the other players given stupid contracts they have been spoken about enough on here.

    …….

    Who?

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  • ian

    Jun 6, 2009 at 10:35 AM

    Comment #28

    I havent heard Ballantyne mentioned, but I also never heard of the Middle east part either.

    Jonny Rubber, if they cant do it, your version will be quite likely, dark days indeed, but if Ashley is thinking that low then it gives the consortium a better chance.

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  • Tel

    Jun 6, 2009 at 10:35 AM

    Comment #29

    At this moment anybody has to be better than ashley,, hope its true Ian, but how did you know last weds and professional (loose term) journalists have only found out today? and why is it only in the mail and not widely reported? Anything happens at newcastle and its big news across the world.

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  • Alex

    Jun 6, 2009 at 10:38 AM

    Comment #30

    Rangerman
    if they are to buy the club , get us promotion and then float the club again then fair play to them . They will have saved this club and deserve to get the money back that they have invested , also floating the club would bring back transparency to the supporters . They would have to do everything by the book and out in the open , no secretly filling thier bank accounts from the well earned money of the supporters . No more months of hearing and knowing nothing .

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  • ian

    Jun 6, 2009 at 10:39 AM

    Comment #31

    Rangerman Xisco and Barton for a start, come on stop being argumentative this consortium is exciting.

    Ericles exactly my worry about the whole thing, if you look back over my posts either Wedn or Thurs I did say something is about to happen but didnt say what. It worries me that there hasnt been an offocial announcement, maybe something is s ticking point.

    I can imagine Ashley will hate the possibility of someone making money from his loss.

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  • Rangerman

    Jun 6, 2009 at 10:39 AM

    Comment #32

    If Ashley was to put the club into administration it would be even harder for him to get his money back so I can’t see that happening.

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  • Geordie-Gerrard7

    Jun 6, 2009 at 10:40 AM

    Comment #33
  • Rangerman

    Jun 6, 2009 at 10:42 AM

    Comment #34

    Barton was signed when Shepherd was running the club, I’ve no idea how much Xisco is on but I bet he will be the first to jump at the chance of leaving in the Summer.

    It seems these people can get the money together to buy the club but are not happy that they’ve got to fork out t cover the losses the club is making while in the Championship, perhaps someone should point out to them that is why the club is so cheap.

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  • ian

    Jun 6, 2009 at 10:46 AM

    Comment #35

    Some fans always know what is happening before the newspapers, they just do not pass it on to them, stuff them they only say bad crap about us anyhow so lets keep it to ourselves.

    But I assure you this is well down the road, it is the Ashley factor which stresses me out, he has a history of bad behaviour, he will think he has fans over a barrell but at least one of the investors will not take a single piece of crap off him and will walk if he behaves badly.

    Ashley has an out here, he should act properly and take it, leave Mort to do the deal.

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  • Rangerman

    Jun 6, 2009 at 10:49 AM

    Comment #36

    Rangerman
    if they are to buy the club , get us promotion and then float the club again then fair play to them . They will have saved this club and deserve to get the money back that they have invested , also floating the club would bring back transparency to the supporters . They would have to do everything by the book and out in the open , no secretly filling thier bank accounts from the well earned money of the supporters . No more months of hearing and knowing nothing .

    ……..

    I think the last thing we need is someone coming in who’s long term plan for the club doesn’t go any further than 12 months when they plan to cash back in again, also being a PLC again won’t do us much good as it was as a PLC that we got into such a big financial mess in the first place.

    Who has been secretly filling their bank account btw? The only people filling their bank account at Newcastle was the Halls and Shepherd when they were paying out dividends even when the club was losing money.

    I want the next people coming in to be buying the club for the long term and be prepared to pump their own money in for transfers, not someone hiding behind the local tag who will put us up for sale in 12 months when they’ve made their money.

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  • ian

    Jun 6, 2009 at 10:50 AM

    Comment #37

    Rangerman, it doesnt matter why, what, if, history anything, the whole lot has to be covered by funding including buying virtually a full premiership squad next season because over the last two years this one has been devalued and is full of rubbish.

    A total budget has to be funded, of course they know that, which is why they made sure they raised enough funds?? Have you got out of the wrong side of bed or something??

    But the part none of us know is will Ashley sell for £80-£90m lock stock and barrell or will there be some crap thrown in?

    You tell me, I do not know.

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  • mattorr

    Jun 6, 2009 at 10:56 AM

    Comment #38

    A question to Ian
    Thanks for the information – it is as u say very exciting. I wondered if you know of a front man of the consortium – the guy/gal who might be chairman. Are we going to get someone who we can “trust”?

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  • hitman

    Jun 6, 2009 at 10:57 AM

    Comment #39

    ian, ashley will up the price try and play hardball.

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  • Rangerman

    Jun 6, 2009 at 10:58 AM

    Comment #40

    It seems to me ian that you are pushing the fact that Ashley might play hard ball as your excuse if it doesn’t go through.

    The fact is anyone coming in needs the money to buy the club, to invest in new players and to cover any losses that the club will make on running costs, if they think Ashley is going to give the club away for next to nothing so they can make a profit in 12 months then they should think again.

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