Latest Update On Newcastle United Sale


The Newcastle United club issued a statement today to the Newcastle Journal, which seems rather strange, on the status of the club’s potential sale.

nufc-crest

The statement read:

“The £100M asking price has been matched, however, we are still in negotiations and all parties involved are at sale and purchase stage.”

So what this says is that the sale is reaching the final stages of completion, and surprisingly there are still more than one party involved – so on the surface this has to be good news.

However we believe only one party, Barry Moat has bid the requested£100M, and the other two groups have yet to lodge formal bids for the club, although they are still actively involved.

Not sure why this statement was not put out on the official web-site though.

Owner Ashley is said to be closing in on a deal with Barclays Bank to secure a new, but much-reduced, overdraft facility with the bankers following months of talks. That overdraft facility we understand now goes from£39 to a new figure -£25.

The previous figure mentioned had been £10M, so this is better from the club’s perspective, but it that£10M overdraft is what has been offered to Moat if he buys the club, and why there is a difference is not clear to us. But it probably is due to the difference in the financial clout of Ashley compared to that of Moat and his backers.

This would provide Newcastle with funds for this season, and Ashley seems to be hoping the club’s good form at the start of the season will go a long way to help closing the deal.

The Journal is reporting  that local businessman Barry Moat is behind the £100M offer mentioned in last night’s statement, but that the overdraft facility to Moat is less than the £25M available to Ashley – and that’s why we think it’s probably the £10M figure that’s been mentioned over the last couple of months.

There are two overseas parties, both thought to be American, who are now beyond the due diligence phase, and the next stage will be putting in formal bids – or not.

Richard Slack, principal lecturer in accounting and finance at Northumbria’s Newcastle Business School, told the Journal this morning:

“Ashley’s attempts to sell the club appear to be failing in the short term and it looks like he is adopting a new strategy.”

“He has slashed the wage bill by off-loading players and it looks like he is only prepared to sanction loan signings so the club won’t be encumbered with any new long-term wage commitments.”

“If the team continues to perform well and looks like getting promoted then the club will become increasingly attractive.”

“Potential purchasers will be attracted by the huge income potential a return to the Premiership will mean, and they will also inherit a club with a low wage bill.”

That’s good thinking by Ashley, and there’s nothing wrong with loan signings, as long as we can bring class in – and keep them for the full season – and certainly Simpson and Khizanishvili are excellent signings.

It also allows the club, should we get promoted in the summer, to keep the books in order, which Premier League clubs have to do within 3 years in any case, under President of UEFA, Michel Platini’s new initiatives.

The club’s projected revenue for this season is estimated at £60M – and the Journal says that’s down down from the previous £90M – although records indicate the revenue for the club is very close to £100M. By the way £60M revenues in the Championship is just fantastic – and it’s all down to the gate receipts and the ever loyal and legendary Newcastle fans.

Newcastle, who were big spenders and had a wage bill of £74M, and were forced to take big cost-cutting moves over the summer, much more than most clubs who are relegated.

Selling Obafemi Martins, Sebastien Bassong,  Habib Beye  and Damien Duff over the summer,a nd the some of the£23M generated from those sales has helped reduce the active overdraft.

On the Barry Moat deal one source said:

“Ashley is playing hard and fast on the price and there appears to be a difficulty with one of Moat’s equity backers.”

There have been no formal offers have been made by the two overseas groups said to be interested.

Overall we think this is decent news on the sale, because there seems a growing light at the end of the tunnel, and a couple of points to also remember:

  • Every win will help to sell the club, as it becomes more attractive to buyers, because we could be a potential Premier League club next season – so this means the players can help to put Newcastle on a more stable future – by winning their games
  • There’s a good chance a sale can be completed before the end of the year, which would allow the Newcastle club and its new owners – at last – to take stock of the situation in January, and strengthen the squad even further, to increase  our chances of promotion at the very first attempt.

As we said this is fairly decent news from what we can tell – and of course even more reason we need those 3 points against Plymouth Argyle today! 😀

Howay The Lads!!



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22 comments so far

  • sirjasontoon

    Sep 19, 2009 at 9:54 AM

    Comment #1

    Hurry up and leave…so we can build properly in January you fat buffoon.

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  • shrews mag

    Sep 19, 2009 at 9:55 AM

    Comment #2

    … this article says:

    “The club issued a statement to The Journal ”

    I am really sceptical about this type of story because the club have been very tight lipped so far … so why tell the journal and not announce this through the website.

    Maybe this is ashley trying to gauge opinion about his future … will the reaction be good or bad given this news of an imminent sale …???

    Also these ‘sources’ … anyone with an opinion can be a ‘source’ … do not be taken in by the c**p.

    Anyway as long as they win today … 4 – 0 for me !!!

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  • sirjasontoon

    Sep 19, 2009 at 9:56 AM

    Comment #3

    I think with Moat we will be out the fat and into the fire financially….I think we will be even more like Grimbsby in disguise – At least Shearer would get experience in Division One like I requested 🙂

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  • Mac

    Sep 19, 2009 at 9:57 AM

    Comment #4

    Ashley suck my sack. I hate u. Nonce

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  • sirjasontoon

    Sep 19, 2009 at 9:58 AM

    Comment #5

    Win today lads…the Sale stuff is just a distraction and has gone on far too long.

    I still don’t think Mike will sell….we shall see.

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  • Stuart79

    Sep 19, 2009 at 9:59 AM

    Comment #6

    Will the fat git be taking up his reinforced seat this afternoon?

    Hope so and we can all throw cups of p1ss at him.

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  • sirjasontoon

    Sep 19, 2009 at 10:00 AM

    Comment #7

    Thanks for resisting posting Ashley pics Ed…I just think of Adult Babies when I see his stupid face.

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  • sirjasontoon

    Sep 19, 2009 at 10:01 AM

    Comment #8

    Funny Stuart 🙂

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  • BlacknWhite Barmy

    Sep 19, 2009 at 10:07 AM

    Comment #9

    the term ‘both parties’ does not necessarily indicate more than one buyer – if the club is seen as one of hte parties.

    3-0 today – Ranger to get his first and hopefully a few glasses of the stuart79 vintage in fatarses direction.

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  • tomleazes

    Sep 19, 2009 at 10:09 AM

    Comment #10

    Heard the “Green Army” earlier on Talksport,they seemed a cheerfull bunch.Hope they are’nt so happy on the “long poke” home!

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  • Ed Harrison

    Sep 19, 2009 at 10:17 AM

    Comment #11

    BlacknWhite Barmy – yes you’re right – since it seems that Moat is the only bidder so far – I’ll change that.

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  • belfast toon

    Sep 19, 2009 at 10:29 AM

    Comment #12

    Mac thanks for that image

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  • Stuart79

    Sep 19, 2009 at 10:33 AM

    Comment #13

    Lets all p1ss on Ashley, lets all p1ss on Ashley da da da da do, da da da, do!

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  • BlacknWhite Barmy

    Sep 19, 2009 at 10:34 AM

    Comment #14

    stu – great song – get it going today

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  • nzedtoonman

    Sep 19, 2009 at 10:35 AM

    Comment #15

    Alan Shearer has stated he is open to offers from other clubs , this is a clear indication to all inside and outside of the club , than Alan is aware now that the sale is NOT going through , and therefore he is NOT likely to take the reins , so he is deciding that he MUST look elsewhere , …..UGH Ashley is here for some time !!!!

    http://www.skysports.com/story/0,19528,11095_5569127,00.html

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  • bren32

    Sep 19, 2009 at 10:35 AM

    Comment #16

    yawn

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  • Stuart79

    Sep 19, 2009 at 10:36 AM

    Comment #17

    BlacknWhite Barmy // Sep 19, 2009 at 10:34 AM

    stu – great song – get it going today

    I’m going to pour ten pints of Carling over him – I’ll drink em first though….

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  • magpie6699

    Sep 19, 2009 at 10:51 AM

    Comment #18

    I don’t get it. If the £100 million asking price has been met, then what has it to do with Ashley what the subsequent arrangements are? Any “still in negotiations” would be between prospective new owners and the bank(s)?
    Or is Ashley just changing the rules as things go along? Is he getting cold feet again that he might miss out on a bonus if things go well for the club? It feels like the old story from history about the solution to the “Irish Question” – every time anybody got close to the answer, they changed the question!

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  • Shot Bru

    Sep 19, 2009 at 10:57 AM

    Comment #19

    I’m not even bothered about the sale anymore, it’s just best to expect the worst so if anything good happens it’ll be a bonus. Anyway i’m having more fun watching the toon this season than i have done in years.

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  • jasonbourne

    Sep 19, 2009 at 10:57 AM

    Comment #20

    To sell a company of the size of NUFC is not easy, you first have to look for buyers, then you have bid round number one, then number two. Then the biders have to go through the financial books of the club, then the seller need to check if the buyers have the funding needed. A prosess like that can take for a healthy coampany, the minimum of two months. For NUFC, I would guess 6 months.

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  • Big Dave

    Sep 19, 2009 at 11:29 AM

    Comment #21

    Has anyone else thought why this has came out now could it be a response to the AS story ?

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  • Nick D

    Sep 19, 2009 at 1:41 PM

    Comment #22

    from the Abu Dhabi group the fat greedy b…..d rejected to Moat who hasn’t got the proverbial to p….s in. It could only happen to us.

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