After some hopeful news yesterday, that the Barry Moat bid to buy Newcastle could be successful, some discouraging news in the Journal this morning.
Mike Ashley – refusing to sell – Seymour Harris recommending Moat offer
The sale of the Newcastle United club appeared to be almost off last night as Mike Ashley for a second time, prepares to take the club off the market in less than a year.
That has to be the worst possible news for Newcastle fans, and to have to spend another 12 months with this guy running the club will not be a pretty site, or a smooth ride, and it will mean no Alan Shearer in to run the club, as most of us had hoped for.
Apparently the talks between Ashley and the Moat consortium have hit a stalemate and Ashley is refusing to budge on his financial demands.
The Journal is reporting there have been attempts to attract fresh interest by offering the club for a down payment of £20M with another £80M due to be paid to Ashley in 12 months’ time.
This news was reported by several news organizations earlier this morning – so why is the Moat offer not acceptable?
As we reported yesterday Seymour Pierce – the investment bank in charge of selling the club – are recommending Mike accept the offer from Tyneside businessman Barry Moat (with American backing) as their preferred bid.
But it appears Ashley remains reluctant to sell for anything less than the £100M he initially asked for.
Moat is said to be backed by American investors, but he has still not put together a package that satisfies Ashley’s increasingly strict financial demands.
With Ashley unwilling to sell many of his players until recently, the wage bill could cause the club to be in a cash flow situation this coming season, where the club will need to pay out far more than they are bringing in.
Why that problem wasn’t started on as soon as we were relegated, we just have no idea, and we’ve been continually mentioning the problem over these last 10 weeks.
It’s hardly rocket science after all – just business 101 with reduced revenues you must cut your costs accordingly.
And we have heard from behind the scenes over these last 2 weeks that there has been growing tension between Seymour Pierce and the Ashley camp.
The bank are now convinced they have the best deal they could get in the present financial climate, and are increasingly frustrated by Ashley’s increasingly stubborn stance.
Moat is reported to have attended a series of meetings with Newcastle’s Managing Director Derek Llambias in London yesterday, in the hope of reaching a deal, and those talks will resume this morning.
If no agreement is reached then Ashley will pull the plug on a Newcastle sale for a second time within 9 months, probably this weekend.
He will then bring in a full time manager, who that may be is anybody’s guess, and the manager will have around 3 weeks left in the transfer market.
This sale has been an absolute farce from the start, and Mike Ashley has won himself no friends on Tyneside, as the club’s name has been dragged through the mud and further ridiculed during this latest soap opera.
Newcastle fans are loyal and love the club, and this has been very painful for us all.
Of course, immediately after relegation Ashley could have given it one year to make a return to the Premier League, and many of the problems he has created could have been remedied by Shearer over the summer, if only Alan had been given a chance.
Yes – this is a complete and utter shambles now, and if Ashley stays on at Newcastle, we can expect more of the same before the next 12 months is up.
And as far as promotion is concerned – forget it.
Comments welcome.
60 comments so far
onepeterb
Aug 7, 2009 at 12:41 PM
Comment #41got to largely agree with stardust and boater. I can’t get passed the fact that we lost our place in the premiership by losing to Hull amid those inane cockney mafia protests Ryan toon – if you are an adult please stop using childish language.
THE MAGPIE
Aug 7, 2009 at 12:44 PM
Comment #42First of all Ashley himself has said he has made some terrible mistakes, he isnt even denying it.
Second-the protests lasted 1-2 games.
Thirdly if he had re-instated Keegan after the Hull game as the supporters wanted he wouldnt be looking at losing 150m like he is at present-so to say Ashley is always doing what the supporters wanted is rubbish.
Ashley listened to Paul Kelmsley far more than us.
Paul141726
Aug 7, 2009 at 12:46 PM
Comment #43Maybe its been said earlier (haven’t read all posts yet), but this 20 million downpayment probably sees MA keeping control of the club until he gets the full 100 million. Another thought—could all these 100 million offers for the club been rejected because they weren’t told of the “fox in the henhouse”–the 100 million loan that Ashley wants most, if not all, back?
onepeterb
Aug 7, 2009 at 12:55 PM
Comment #44I agree that Ashley has made some terrible decisons however this is the second relegation I’ve seen where the supporters did nothing to help the situation by there “Sack the Board” reactions
Stardust
Aug 7, 2009 at 1:03 PM
Comment #45The Magpie – the protests last to this day – listen to the hatred on this blog – it invades the city. So what do the fans do – when their actions contributed to our downfall – more of the same – they forego the right to call themselves supporters.
Hobs
Aug 7, 2009 at 1:16 PM
Comment #46I understand the views of the pro-Ashleys here…
Basically he’s been very, very unlucky with his decisions at the club:
When he bought the club he was unaware of the economic disaster it was in. He also agreed to Let Big Sam have a go, as he was just appointed manager. He also backed him with money for new players.
But after some time the fans lost faith in Big Sam, and Ashley was forced to make a change.
Again his actions was according to what the fans wanted.
Then it was the Keegan story. Ashley also appointed Dennis Wise to lead the club’s scouting network and find bargain players so the club didn’d waste more money on high earning underperformers.
World economy goes in meltdown.
Ashley is hit hard by the world crisis and want to slow down the spending. He listens to what Wise sais and sign players ha recommend.
Yet an unlucky desicion, underestimating the importance of Keegan as he walks away.
However I think his intensions was good. The club could not afford to go on as it did anymore.
Next is the fan’s protests, and just as the fans demand he try and sell the club.
However there was no buyer in the economic situation of the world. At the time it was difficult to agree on a value of the club due to the uncertanity of the global markets.
He take the club off the market to regain some stability. Kinnear is appointed as noone else want the job.
Then JFK is ill. Ashley still want him to be manager, and hesitate in appointing someone new. He may even try but not again no one wants the job.
As results drop he finally manage to get Shearer in to save the season. However the team ends up in relegation.
Again fans anger at Ashley, and another decision to try and sell the club. He throw out what he think is a bargain prize of £100mill. But as due intelligence is done, it turns out the real value of the club may be much lower concerning the risks involved.
Reluctant to appoint a new manager, so the new owner woun’t get in the same situation at he was with Allardyce, Ashley just has to wait.
Time goes, due intelligence takes more time than anyone had expected and everyone connected to the club just have to wait.
Time gets critical and Ashley set a deadline today, or he will have to take the club off the marked to avoid further collapse. And here we are.
A lot of very unfortunate decisions, but their intensions may be good. This sale can not be easy for Mike either, and I’m sure he wants out. However he can not just give away the club. If he can do a little investment to get promotion then he’ll be able to sell for a much higher sum and that’s probably why he woun’t accept the offers lower than his asking prize.
Stardust
Aug 7, 2009 at 1:29 PM
Comment #47Hobs – perfectly put – I actually believe he could have saved himself from this position by communicating – a simple lesson he didnt learn – it may have saved him 150m or so.
Either way lets hope for e speedy resolution either way – and to those that hate him – please just support the club – its bigger than Mike Ashley. And for all those that will stay away until he is gone – remember the fact if the worst happens and we end up in administration – that you contributed to our downfall.
Stuart79
Aug 7, 2009 at 1:29 PM
Comment #48Nobody should be getting into a lava here.
It’s been quite clear for a number of weeks that nobody in the media at all has any idea what is going on.
One paper says it’s going ok, the next says it’s collapsed ect….
Keith Harris is the man to listen to. He said players need to be sold (and they are) and the end of the month he thinks something will happen….
We cannot listen to Llambias because he’s lied through the whole process but then that’s up to him.
To everyone replying to Stardust – He’s sat in front of his laptop laughin at you. He says these things to get a reaction, so don’t.
Stuart79
Aug 7, 2009 at 1:36 PM
Comment #49Hobs // Aug 7, 2009 at 1:16 PM
Failing to do due dilligene isn’t unlucky mate, it’s fckin stupidity!
Sacking a perfectly able manager and replacing him with KK wasn’t unlucky, again it was stupidity!
The ‘credit crunch’ hit hard I agree. But let’s not forget that he wasn’t exactly splashin the cash in transfer before the crunch hit him.
Stardust // Aug 7, 2009 at 1:29 PM
Either way lets hope for e speedy resolution either way – and to those that hate him – please just support the club – its bigger than Mike Ashley. And for all those that will stay away until he is gone – remember the fact if the worst happens and we end up in administration – that you contributed to our downfall.
Didn’t you stay away when FFS was here?
Administration- Best thing that could happen to us. Someone would then come along and buy the club for next to nothin and give Ashley 1p in the £ for what they owe him….
Heres hoping….
Hobs
Aug 7, 2009 at 2:06 PM
Comment #50Again I do not claim that any desicions made has been smart or stupid.
But I think they all seemes resonable to Ashley at the time they were maid.
There was no mulling when Wise was appointed, neither with Llambias or Keegan.
Most of what Ashley has done is actually just what the fans wanted or was excited by at the time it happened.
It has always been changes to the better at that time.
As with signings. You remember how well Jonas and Colo played in their first matches. At that time there was no arguing that they were good buys.
The biggest problem for the club now is the communication. When there is no word at what’s going on it creates fake stories and rumours. As enough papers write them and put their own story on top of it these stories become trye to the fans, and it creates anger.
If this whole sale was a more open process then we would know what’s going on, and why certain things are and are not done.
Guys like Ashley are buisniessmen, and they are most likely better at making top level decisions than most regular people. Seeminly easy and obvious solutions may not be the right after all.
It is a matter of damage control at the moment. Appointing a manager may destroy a potensial sale.
However when people are not told anything we assume that everyone at the top are totally incompetent. More communication would have saved the club, and Ashly might even been the happy owner of a Premier League club.
I know there is a serious process going on at the moment, regarding a sale of the club. But again the lack of communication with the fans is maximicing the crisis.
Overall my point is that Mike is trying to get out, but not at any cost. He is just not talking to the public about it. And that is really an essencial part of running a football club.
chuck
Aug 7, 2009 at 2:10 PM
Comment #51Think Harris & Seymour Pierce are as tired of this neverending saga as most of us, they want their commission, now ! Regardless who or for how much.
Really dont think any of the supposed buyers could produce the required £100m. and thats obviously MA`s bottom line (this week)
He will have taken at least a £150m. bath since buying the club, even after selling for the requested £100m., thanks Mike !
What is the story with this wierdo STARDUST
more like angeldust, guy is either stoned or english is his second language, can`t figure what the hell is he on about ?
wilson32
Aug 7, 2009 at 2:36 PM
Comment #52stardust and all the ashley lovers on here p1ss off
Rangerman
Aug 7, 2009 at 3:00 PM
Comment #53I’d rather Ashley stayed for another season than Barry Scroat coming in with a big loan expecting me to pay it back for him.
Stuart79
Aug 7, 2009 at 3:06 PM
Comment #54Rangerman // Aug 7, 2009 at 3:00 PM
I’d rather Ashley stayed for another season than Barry Scroat coming in with a big loan expecting me to pay it back for him.
I asked you yesterday and you never answered me, so I’ll ask you again.
Where’s your infomation that he is buying the club with borrowed money?
I presume you’re going off the papers?
One says he’s put £50m in himself and isborrowing the rest, another says he’s borrwing the lot, another says he has backers from the Middle East and another says America.
How do you know?
Harris and Ashley have both said they will only sell to someone who can invest in the future.
By your reckoning Moat would be skint once he bought the club.
MacToon
Aug 7, 2009 at 3:41 PM
Comment #55Stardust
At every turn Ashley has done as the fans want
ha ha ha ha what a joke you are, sweeping statements and group all the fans as one with the exception being you as the one who is always right and knows everything worth knowing. What a joke you are and this owner, infact my guess is you’re related!
Btw, if someone has a different opinion it does not neccesarily mean they are children or thick!
Ericles
Aug 7, 2009 at 4:14 PM
Comment #56The saga proves what a hypocrite and malignant character Ashley is. An offer is recommended and out of malice (?) he apparently rejects it. We are told there is an embargo on players and managers in, and players out. On their way go Martins and Bassong, probably Beye. Offers made to JFK and Bleary O’Leary. Christ! What is Fat Mike on – is it legal? As for Stardust – let you out have they? What section of the Mental Health Act was it sonny?
Lew Davies
Aug 7, 2009 at 7:39 PM
Comment #57stuart79 – “…..Administration- Best thing that could happen to us. Someone would then come along and buy the club for next to nothin and give Ashley 1p in the £ for what they owe him….”
Which is exactly why he wont let that happen.
Solaidback
Aug 7, 2009 at 8:41 PM
Comment #58I’m beginning to think that Ashley doesn’t want to sell the club because he’s making any excuse not to sell, no matter who it is & what ever they’re offering!!!
The guys is a complete moron & doesn’t seem to care that the longer he holds onto the TOON, the less it’s worth to him!!!
Not sure about this report of him offering the club for an initial £20m, with the other £80m being paid in a years time…. if that’s the case, why isn’t he accepting Moats offer?? I think it’s because e doesn’t want to sell & is only trying to pees the fan!!
GeordieLander
Aug 8, 2009 at 12:14 AM
Comment #59I cannot believe how ignorant Ashley is and firmly believed his stupidity could not be surpassed until I read the entries by ‘Stardust’.
I recall Stardust backing Ashley (he has failed) and slating the Fans or The Mob as he called us (who are the only entity to emerge with any integrity from this whole affair)
He clearly does not have his finger on the pulse of the fans feelings and so clearly is not one of us… If that Lad is a season ticket holder… I’ll eat my hat ! The Balloon !
IrishToontastic
Aug 8, 2009 at 12:57 PM
Comment #60What I don’t understand is how there can be any pro-Ashley Newcastle supporters out there. The mind boggles when you consider that Ashley has left the club in limbo for the entire summer, didn’t bring in a single player while selling some of our best players. I mean Ashley said he doesn’t want to pump any more money into the club but what happened to the money generated through the sales of Martins, Beye and Bassong? Why could we not bring in some players on loans? The team is now unbalanced, thin, and look incapable of mounting a serious promotin challenge this year.
Ashley out!