Four Consortia Start Due Diligence On Newcastle Books Today


Former Newcastle Chairman Freddy Shepherd is a leading figure in one of the four consortia that today will start inspecting Newcastle’s books, before formal bids are made for the club.

sultan

Sultan of Oman – one of four bidders starting due diligence today?

Due diligence can take up to 2 weeks, but there is hope that if all four consortia want Alan Shearer as manager, which is heavily rumored to be the case, Shearer could be appointed manager while the due diligence continues. We are hoping that something will be announced later this week on that.

All groups interested in the club had to prove they had the funds – £100M – to buy the Tyneside club by last night – and four qualified, as we now understand.

The four groups have not been officially identified, nor will they be, but it’s being reported in the Northern Echo today they believe the four organizations are as follows:

  • A local consortia fronted by former Chairman Freddy Shepherd – it is thought the funds are coming from their own money, and will not be funded from overseas
  • A group based in South Africa, and that’s all we know about this one – it’s rumored he’s a rich banker
  • The group in Oman which is headed up by the Sultan of Oman, whose wealth is greater than that of Queen Elizabeth II – they presumably have little trouble about the money
  • A group based out of the US, and we have had not seen any hints as to who this may be – but of course there are many many possibilities – US companies have vast experience on how to run sports teams with some success, and they generally treat the fans with great respect – their customers

We’ll point out that the Profitable Group from Singapore didn’t appear to make it, and presumably couldn’t produce proof they had the £100M funds. There had been some significant skepticism last week they had insufficient funds to buy the Tyneside club.

Freddy Shepherd, like the other groups, has signed a confidentiality agreement with owner Mike Ashley after his newly-formed business group confirmed they indeed have the £100M funding that was a prerequisite for being granted access to Newcastle’s latest set of accounts.

It was reported earlier that he was bidding £75M, but the fact that four groups have qualified to start due diligence, has to be an excellent sign the club will be sold soon.

We have to hope the groups will come in with some additional funds that Alan Shearer can use in the summer, to significantly strengthen the squad.

We’ll again clarify that this news is taken from the Northern Echo and since we’ve covered most of these groups over the last 2 weeks, we know a little about them. These four may or may not be accurate – and we have tried to report on them sensibly.

We have to say that Freddy Shepherd could have a real shot at winning this thing, and that’s good or bad – depending on your view of Shepherd – and from the comments we’ve already seen, it’s clear  some  Newcastle fans will be less than happy if Freddy becomes the new owner.

The Tyneside club will have trouble in trying to unload some of the high wage earners still under contact at the club, including Barton, Coloccini, Gutierrez, Xisco, Enrique and Nolan. Most of these will not be at pre-season training in two weeks time, and will be around until we can sell them – or should we say if we can sell them.

Bu we wait and hope – as usual – but with some greater expectation of good news – which is a pleasant change.

Comments welcome.



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105 comments so far

  • Phillippe Alberrrrrrrt

    Jun 17, 2009 at 11:20 AM

    Comment #1

    Story from nowhere Ed!! Nice!! Where you getting your info from? I would have thought that the Profitable group would be more likely than the mystery South African bid

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  • Pons Aelius

    Jun 17, 2009 at 11:20 AM

    Comment #2

    I don’t care who takes over any more, as long as they treat the Newcastle fans with respect and give us a squad we can be proud of.

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  • cjcox88

    Jun 17, 2009 at 11:26 AM

    Comment #3

    I see no evidence of this I 100% hope your right ed! But I do not see this being right!

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  • Ericles

    Jun 17, 2009 at 11:28 AM

    Comment #4

    Understanable Pons Aelius – just so long as they new owners do not jabber jabber away in Lunnon lingo!

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  • Ed Harrison

    Jun 17, 2009 at 11:29 AM

    Comment #5

    Phillipe – all stories are out of nowhere – but I’ve clarified it – this news is from the Northern Echo and since we’ve covered most of these groups over the last 2 weeks, we know a little about them. Hey this may not be true – but if we waited until everything was proved true – there wouldn’t be a blog! We tried to list who it looks like the 4 groups are – and tried to report on it sensibly – and to us it seems Freddy Shepherd has a real shot at winning this thing. That’s good or bad – depending on your view of Shepherd.

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  • cicero

    Jun 17, 2009 at 11:30 AM

    Comment #6

    What is the source for naming these 4 consortium Ed?

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  • Stuart79

    Jun 17, 2009 at 11:31 AM

    Comment #7

    Like I said on a previous thread Shearer has been told personally that there could be a significant announcement on Thurs.

    I have a fancy for Larry Ellison as the American. He’s known as a keen sports fan and was interested in buying Everton a while ago.

    Everton need £500m spent on them before you look at the team so we offer alot more value.

    Do you know of this guy Ed?

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  • Ed Harrison

    Jun 17, 2009 at 11:42 AM

    Comment #8

    I’ve updated the piece a little – saying where this story is from etc etc.

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  • Ed Harrison

    Jun 17, 2009 at 11:44 AM

    Comment #9

    Yes I know of Larry Ellison – founder of Oracle – IBM almost sued him in the early 1980s when he left IBM and took some IBM data base patents and secrets – or so the accusations go. He’s busy right now trying to get ready to win the Americas Cup in sailing – he’s a character and is well heeled.

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  • reetpetite

    Jun 17, 2009 at 11:46 AM

    Comment #10

    stuart79- Thats a load of rubbish regarding being better value than everton. They are in europe yet again and have a massive fan base along with being one of the most succesful teams in british history.

    Newcastle are losing millions each week on players wages they cant shift and they are missing out on the sky millions. If they do get promoted you will be starting off from scratch with probably a load of untried players at prem level or your same high earning players who werent good enough last time.

    Oh, and everton have a brilliant manager compared to your shearer who looked tactically inept in his games in charge.

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  • coyote

    Jun 17, 2009 at 11:54 AM

    Comment #11

    thought you might have been fronting the american bid ed – you living there and all

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  • sirjasontoon

    Jun 17, 2009 at 11:55 AM

    Comment #12

    @Cashola 🙂

    Agree re Shearer Benny I think that will be the worst Toon appointment in ages.

    Hopefully this Oman dude will have the funds to help us move forward and have the money for a proven manager.

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  • Stuart79

    Jun 17, 2009 at 11:58 AM

    Comment #13

    reetpetite // Jun 17, 2009 at 11:46 AM

    You miss my point.

    Everton would cost about £200-250m to buy. They have a debt of approx £60 and have a new stadium to build at a minimum cost of £300m.

    So an investor would have spent half a billion before he knows it.

    Their in the Europa League. Everton made about £750k last year from Europe so it’s hardly a money spinner is.

    On the other side of the coin. You can buy NUFC for £100m have no debts to pay and have a ready made and paid for stadium worth £250m.

    Porvided adequate funds are provided and we get back in the PL our turnover will be more than Evertons without even finishing in the top 5!

    Long term investors are just that.

    Everton have Liverpool to compete with. That’s a big negative. Bit like Spurs really, you have Arsenal and Chelsea to compete with and that isn’t great.

    We compete with nobody for our fans.

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  • bettyswollocks

    Jun 17, 2009 at 12:07 PM

    Comment #14

    aye no need to get your nickers in a twist benny. I don’t believe stuart mentioned us being bigger, better or having a great manager (considering we don’t even have one).

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  • Macas35

    Jun 17, 2009 at 12:09 PM

    Comment #15

    The whole point about Shearer is that he is the only man all four consortia are likely to agree on. If any of them don’t want Shearer in then we are in deep trouble, as it will take a few weeks to do the due diligence and we simply can’t afford any more delays. We must appoint Shearer and let him bring the players in, as he is a big name. if it doesn’t work out for Shearer I get the feeling he will walk away without demanding the rest of his wages, but we will still be left with a good squad. It has to be worth the gamble as we can’t afford to wait any longer before appointing a manager to sort this mess out. And if people are judging Shearer on 8 games with a poor team in the bottom three, then remember what happened with Alex Ferguson at Man United. We have to give him a chance, it’s far too early to say if he will be a good manager or not, and the pros certainly outweigh the cons.

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  • sirjasontoon

    Jun 17, 2009 at 12:12 PM

    Comment #16

    Disagree Macas I think it will be the final nail in the coffin if Shearer takes over now.

    Night Night Toon RIP

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  • sirjasontoon

    Jun 17, 2009 at 12:14 PM

    Comment #17

    I think Fat Fred/Local Consortium would be more skint than Fat Mike…please buy the Toon Mr Sultan and build our busted club.

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  • bettyswollocks

    Jun 17, 2009 at 12:14 PM

    Comment #18

    on the issue of shearer as manager I’m not sure why so many folk are against it. It’s not like the cream of managers are beating a path to our door. Dear god just been linked with curbishley is enough to convince me shearer’s the one.

    Seriously though you can’t judge him on those 8 games considering the rubbish that was served up before he even got here. All I know is he seems to be the popular choice of the players, we know he won’t take any crap, and he’ll get time from the fans.

    After all we’ve been through there’s no-one I’d trust more to sort this mess out. It’s a big job for a big man and we know he has the balls for it. Just hearing Damian Duff say it was nice to be part of a professionally run football club for 8 weeks makes you wonder what the hell was going on before. Shearer is a logical choice for me – for both the head and the heart!

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  • sirjasontoon

    Jun 17, 2009 at 12:17 PM

    Comment #19

    There are no Pro’s with Shearer just Con’s as we continue to recruit with our hearts and not our heads.

    Alan can manage us in the future, now is not the time for an unsackable inexperienced local hero we need EXPERIENCE.

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  • Macas35

    Jun 17, 2009 at 12:19 PM

    Comment #20

    sirjasontoon – I know you don’t like the idea of Shearer as manager, but would you be happy waiting another 3 or 4 weeks to bring another manager in, and missing out on all the best players available?

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  • simon376@work

    Jun 17, 2009 at 12:22 PM

    Comment #21

    Here’s a point I put on another thread with regards to Shearer as manager

    We can use Shearer just like we did Keegan. To be honest, we were in a worse postion when Keegan first came in, on the brink of going into the old third and probs out of business. A bloke came in with no managment experience and kept us up on the last day. The following season we won the league. How?

    He employed good coaches and used the fact that lots of players looked up to him and wanted to sign for him. Can the same not be done with Shearer?

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  • bettyswollocks

    Jun 17, 2009 at 12:27 PM

    Comment #22

    sirjason – you’re right – exprience is critical. Guardiola just coached the first side in history to do the spanish treble and I’m sure he fell back on all his years of previous experience!

    I’m sorry mate but it’s easy to pass off the ‘local hero’ line but it’s got nothing to do with it for me. We need someone to unite the club and the only one to do that is shearer.

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  • Toon_Factor

    Jun 17, 2009 at 12:29 PM

    Comment #23

    I hate that! Why are we always away on the first and last day grrrrrrrrrr

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  • Geordiedoonsooth

    Jun 17, 2009 at 12:34 PM

    Comment #24

    sirjasontoon are you a spurs fan or worse a mackem? Shearer is the only person who can unite the toon just like Keegan did in the early 90’s he had no experience but I am Sheaer will bring some experienced coaches in & his name will attract good players to get us back up.

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  • Whumpie

    Jun 17, 2009 at 12:34 PM

    Comment #25

    SJT, you must be a riot at parties.

    I am just hoping that you’ll be happily accepting you were massively wrong about Shearer, when we’re into our 10th year with him in charge, once again heading for the semis in the Champs League and people are debating who’s better out of him and Ferguson…

    (Hey, let me dream, eh?)

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  • Rodzilla

    Jun 17, 2009 at 12:34 PM

    Comment #26

    Stuart, I’ve just done a bit of Columboing after your hunch on Larry Ellison and found out through this PDF….

    http://209.85.229.132/search?q=cache:itqBUEOds0EJ:www.salesforcemagazine.co.uk/files/coverstory%2520200806.pdf+Larry+Ellison+newcastle+united&cd=5&hl=en&ct=clnk&gl=uk

    ….that Andy Jaques of ‘Salesforce’ who Larry Ellison owns a large stake in, is a big NUFC fan (last paragraph in the PDF, as HTML file).

    This may well be a very tenuous link.

    🙂

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  • cicero

    Jun 17, 2009 at 12:35 PM

    Comment #27

    I agree with you Bettyswollocks, Shearer is the only one who can unite the whole club and I think he is clever enough to recognise his short comings and surround himself with good coaches.

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  • sirjasontoon

    Jun 17, 2009 at 12:38 PM

    Comment #28

    Shearer will not be a good manager in my opinion.
    I didn’t really notice a flash of managerial genius during those 8 games to be honest and think he will struggle.

    I would bring in Venebles,Coppell,JK before him.

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  • simon376@work

    Jun 17, 2009 at 12:40 PM

    Comment #29

    Venebles or Coppell would no doubt do a good job, but JK??? Has to be one of the worst managers we have ever had. I would have Guilt back over him

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  • sirjasontoon

    Jun 17, 2009 at 12:43 PM

    Comment #30

    Geordiedoonsooth…So because I don’t agree with the general consensus I am a spurs fan or a mackem..go and boil your head mate.

    4ookin WALLSEND BONNY LAD.

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  • sirjasontoon

    Jun 17, 2009 at 12:44 PM

    Comment #31

    JK was tongue in cheek..still a close call with him and Shearer though just JK would be easier to sack when it goes Tits up.

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  • Toon_Factor

    Jun 17, 2009 at 12:46 PM

    Comment #32

    sirjasontoon

    Shearer will be able to persuade some players to stay and also attract better players than most other managers could.

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  • Nick 69

    Jun 17, 2009 at 12:47 PM

    Comment #33

    i would pretty much gurantee that if one of our 3 strikers had of put away the numerous sitters they missed end of season, and we would have therefore stayed up. everybody who is doubting shearer would be shouting for him to be appointed just like the rest, even though the team performances would have been no better than they were, just tht we managed to score 1 more goal!

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  • bettyswollocks

    Jun 17, 2009 at 12:48 PM

    Comment #34

    Another plus with shearer is that he has already been in there for 8 weeks. He knows exactly what needs doing and seemingly he is already ready to move. If we bring anyone else in we lose those 2 months.

    And as already mentioned – who else is there who would realistically take it. Coppell wouldn;t. The only decent sized club he has been at is citeh and he ran a mile after about a month!

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  • sirjasontoon

    Jun 17, 2009 at 12:50 PM

    Comment #35

    Toon Factor…there is very few 1st teamers that deserve to stay so it’s hardly a big job the team needs a complete over haul.

    We need a new start and not some local hero and all his mates jumping on the ship like Rob Lee etc

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  • Stuart79

    Jun 17, 2009 at 12:53 PM

    Comment #36

    sirjasontoon // Jun 17, 2009 at 12:50 PM

    Who would you appoint and would they guarentee any success?

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  • Rangerman

    Jun 17, 2009 at 12:54 PM

    Comment #37

    I wouldn’t care if Wearside Jack bought us as long as he’s got his own money to put into the club for transfers.

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  • cicero

    Jun 17, 2009 at 12:55 PM

    Comment #38

    Sirjasontoon, if you wouldn’t have Shearer as manager because of a lack of “managerial genius” then why on earth would you even mention Joke Inear. The man was a disaster no tactics, prehistoric training, a laughing stock in the press, a team in almost open revolt. Give me a break.

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  • Toon_Factor

    Jun 17, 2009 at 12:55 PM

    Comment #39

    sirjasontoon

    I was thinking along the lines of Bassong, Martins, Beye etc and plus we are in a much easier league so …………

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  • bettyswollocks

    Jun 17, 2009 at 12:56 PM

    Comment #40

    sirjason: ‘it’s hardly a big job the team needs a complete over haul.’

    a contradiction in terms is it not?

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