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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Increasing Number Of Reports That Ashley To Sell Newcastle

9:09 pm, Sunday, February 16th, 2014 by Dr. Ed Harrison · 35 Comments

If you believe the Sunday papers (some people actually do so we understand), then there are an increasing number of reports that Mike Ashley is getting ready to sell Newcastle United.

mike ashley smiling

Mike Ashley – will he sell Newcastle?

One report also has Derek LLambias returning to Newcastle as the Managing Director, the position he held before Joe Kinnear was appointed and Joe prevented the signing of Douglas of FC Twente, because in Joe’s opinion he was not the right player for Newcastle.

That’s one of three things Joe did at Newcastle, the other two being to bring Loic Remy and Luuk de Jong in on loan.

Ans some reports have Derek coming in to prepare  the club for sale – which would be possible in the summer.

And there are an increasing number of fans who want Ashley to sell up and move out, but we’d be very surprised if the owner is thinking of selling the club, even though his standing with the fans is a t a very low point at the moment.

Ashley could come out and say that he is selling the club – as he has done twice before – but the price now is higher than it’s ever been.

And to get all the money back he has invested in the club – the Londoner would want around £300M, and we just don’t think Newcastle is a good buy at that price, given other clubs available at a much lower price.

So yes, we could go through it all again, a third time, but the chances of Ashley being able to find a buyer at that price must be low – very low.

The best chance of Ashley selling is if an unsolicited bid comes in from some Billionaire or a rich consortium of buyers (better still), that offers the Newcastle owner close to the £300M we think he would be looking for.

And if Ashley stays at the club, maybe he can come out and say he is willing to invest all profits back into the club – and that would give Newcastle over £40M net a year to spend, with the huge money the club will be getting with the new TV deal agreed with the Premier League.

Better still – maybe half of that money could be used to pay off the loan the club owes Ashley, and then in the next few years the loans could be paid off and the club will become that much cheaper.

So there’s a strategy to both spend money in the transfer market, and also bring down the price of Newcastle United – given it remains the amount Ashley has invested in the club.

That would not be a bad path to follow – and who knows a buyer may come along and buy the club at some point.

It could happen.

What do you think?

Comments welcome.

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Tags: Financial Fair Play · Financials · Newcastle News · Training Ground · Transfer News and Rumours




35 responses so far ↓

  • 1 tequilamag // Feb 16, 2014 at 9:12 PM

    800 mill or nothing

  • 2 JackButler // Feb 16, 2014 at 9:16 PM

    With the financial position that the club is currently in and with the additional TV revenue due to start coming in this May we would be seen as an excellent investment for anyone with enough money to take us on, but saying that with that same financial position that we are in why would Ashley want to sell???

    Stranger things have happened but I’m not preparing to celebrate because of a sale any time soon

  • 3 jesperfuglsang - captain of the lemon crew // Feb 16, 2014 at 9:22 PM

    JB…I suppose if Mike really wants to earn money there is a easier way than to own a football? 😉

    …I have thought for a while he is making the club ready for a sale (whether it will happen or not I don’t know)

  • 4 JackButler // Feb 16, 2014 at 9:24 PM

    jesper

    It would be strange for him to sell up just as he could see a real profit…………………..but this is Ashley we are talking about so anything’s possible, lets hope we do see the back of him sooner rather than later mate

  • 5 Ibizatoon // Feb 16, 2014 at 9:24 PM

    Jesper…Having owned a few footballs in my time, I can guarantee there are better ways to make money 😉

  • 6 Jeff from Benwell // Feb 16, 2014 at 9:24 PM

    Ashley is owed approx half the value of the club.
    The logical thing would be to sell 49 percent. to a wealthy inividual ,a group of the same ,or a consortium.
    He could then retain overall mastery but take a back seat and let fresh blood kick the club on.
    If I had a few bob I would be interested.
    The club is on a sound economic footing and no matter what you think of MA’s football knowledge his business acumen is undeniable.

  • 7 valle // Feb 16, 2014 at 9:25 PM

    Who do the different cities in the tyne and wear county support (mainly)… Gateshead would be mostly Newcastle right? But which ones would you say were scum supporters (again mainly)?.

  • 8 tequilamag // Feb 16, 2014 at 9:26 PM

    JB, I know Newcastle will turn a good profit this year but MA can`t expect to keep making big profits every year. You can only go so long before yo invest in your business ir you get left behind. We are rapidly approaching that point. The extra TV money looks good bt every time it has happened in the past wages have gone up as well. 3oo K a week for Rooney. This is a great time for MA to sell, on the face of it it`s a well run business financially. In reality without major investment on players it is a house of cards.

  • 9 Harley // Feb 16, 2014 at 9:28 PM

    The valuation of the club will be significantly higher now the new premiership deal is in place. If the annual revenue is to go up by 30-40% (not sure if those figs are correct) then surely the value of the club should go up accordingly.

    I’m sure Ashley has taken and will take a few quid out so It’s not unrealistic to think that someone could see us as a good investment.

  • 10 JackButler // Feb 16, 2014 at 9:29 PM

    tequila

    I agree mate but we all know that nothing is ever easy or straight forward with this idiot, still think there will be a few bumps in the road before we are rid of him and even if he does actually want to sell he still has to find a buyer willing to meet his asking price and thats always going to be the hardest thing

  • 11 jesperfuglsang - captain of the lemon crew // Feb 16, 2014 at 9:31 PM

    Ibiza… haha 😉 you cheeky bastard!

  • 12 tequilamag // Feb 16, 2014 at 9:32 PM

    Valle it`s not clear cut, there are plenty of Sunderland supporters in S Tyneside. Durham is pretty split. My village pub is quite lively on derby days.

  • 13 Sav // Feb 16, 2014 at 9:35 PM

    The club starts turning a decent profit and therefore becomes available cheaper? What School of Economics did you get your cert from, then? Not the same one Monster Mash went to, I’ll bet. If we start becoming a nice little earner, he’ll not sell a laying hen for buttons. We’ll never get rid.
    Incidentally, who is to say the estimated 45 million profit over the last 5 years in transfers, not to mention the TV and place money for this season have not already fallen into his gaping wallet? Not to mention all the free advertising – right down to plastering SD.com above the players’ tunnel – he is getting.

  • 14 stuart no9 // Feb 16, 2014 at 9:36 PM

    funny , coz i pointed out just last week , why couldnt a consortium of ‘local’ or north east born famous people such as , singers , actors, sportsmen, who bleed black and white join together , buy the club and take it to where it should be, CL, W hat is stopping that from happening ????

  • 15 Oldgit1 // Feb 16, 2014 at 9:36 PM

    I can’t see the point of owning a club and not showing up at the ground to watch a match. At least other owners are seen regularly at their clubs.
    Or am I missing the point.

    I believe a deal has been struck with an Asian group, hence the reason we are not signing any players and the two incoming are loans.

    Trouble at mill me thinks.

  • 16 tequilamag // Feb 16, 2014 at 9:38 PM

    JB, agreed. not speaking with any inside knowledge. Just think in many respects MA must think buying Newcastle was a huge mistake and if he can get out with his nose in front it must be a temptation.

  • 17 croftus5678 // Feb 16, 2014 at 9:38 PM

    a load of rubbish !!!

    your forgetting the free lifetime sd advertisement that ashley is getting and if he sold the club he would be millions outa pocket every year as he would have to pay for it !

    even if the asking price came in for the club he would be a fool to sell it when he’s earning a big profit every year with no investment needed + the extra income from advertisement and value of the advertisement thrown in for extra

  • 18 scout // Feb 16, 2014 at 9:39 PM

    Do you really believe that he hasn’t got his interest free loan back haha he’s raking it in we’re -45 million on transfer spending in the last 5 year or something mental like that.
    We shouldn’t even be in the league with ambition like that, only carrs shrewd buys have allowed us to remain in the premiership, good call above about the free advertising too. Can’t believe they said he doesn’t pay for it either, they are laughing at anyone who attends a game.

  • 19 JP...from The Rock // Feb 16, 2014 at 9:41 PM

    Groundhog Day AGAIN!! :( ZZZZZzzzzzzzzzzzzzz…

  • 20 Sav // Feb 16, 2014 at 9:42 PM

    In fairness to Jabba, if the fair play legislation had tooth in its head, we’d be right up there with the squeaky-cleanest in the land. Unfortunately, the running of Newcastle United is not the biggest joke in football.

  • 21 Harley // Feb 16, 2014 at 9:42 PM

    Hyperthetically speaking.

    Just say Ashley was to sell and the new owner didn’t want pardew, who realistically would people think would be a good shout?

  • 22 scout // Feb 16, 2014 at 9:42 PM

    Singers and actors haha jimmy nail, Tim Healy and sting are gonna chuck 300 million at it hahahahaha

    Post of the season mate, brilliant

  • 23 Belfast // Feb 16, 2014 at 9:48 PM

    Funny how the west ham owners paid for relegation from their own pocket, and our owner “loaned” us the money to pay for it lol

    The great leader our saviour wanted his cash back.

    This is where a lot of this cash we owe him came from, to my knowledge.

  • 24 Sav // Feb 16, 2014 at 9:51 PM

    If Pards didn’t have to spend most of his time running around SJP with a hose and a red helmet, who knows what kind of manager he’d make. For a 5th place when we’d no right to be 5th and a coule of manager of the months it would be wrong not to give him a crack under an owner who said, ‘gan on, son!’

  • 25 tequilamag // Feb 16, 2014 at 9:52 PM

    http://www.telegraph.co.uk/sport/football/teams/west-ham/9908470/West-Ham-relegation-cost-owners-David-Gold-and-David-Sullivan-16-million-each.html

    If you read all the article it says they loaned the money as well.

  • 26 moonraker // Feb 16, 2014 at 9:55 PM

    valle @7

    Gateshead and Newcastle are on the Tyne so support is for the Toon although there are a few Sunderland supporters particularly in south Gateshead.

    Sunderland is on the river Wear so that is a different area and holds their fan base.

    Does that

  • 27 Sav // Feb 16, 2014 at 9:58 PM

    NUFC is worth what it is worth. If I buy a car and when I get it home I find to my surprise I have to put a new engine in it, I can’t expect to sell it on again for what I paid plus the cost of a new engine. Its caveat emptor. If I don’t pay for the engine, I’ve just bought an expensive set of garden chairs.
    At the same time, where is it written that Monstaer Mash will only sell once he has every penny back?

  • 28 moonraker // Feb 16, 2014 at 9:59 PM

    valle @ 7

    ….clarify? (sorry typo)

  • 29 moonraker // Feb 16, 2014 at 10:03 PM

    Sav

    True, at some point he will cut his losses and run! Although to be honest he’s probably clawed a load of money back by now.

    If only the man would speak to us now and again :-(

  • 30 tequilamag // Feb 16, 2014 at 10:11 PM

    Sav I would say the club is worth a lot more than the last time he tried to sell. The club losing money hand over fist.
    250 mill for a business that will probably make a 50 mill profit this year is not a bad price.

  • 31 Sav // Feb 16, 2014 at 11:50 PM

    Exactly. There’s no reason he wouldn’t sell now if he’s had enough. The idea he has to wait around indefinitely until the club is worth 300m, or whatever the sum is supposed to be, just doesn’t stack up. It is not the way business works. As for asset strippong, I’m not even convinced of that. If you are going to sell up, a club with a Cabaye already in contract to it is worth more than a club without. The playing staff are assets and the sum Cabaye brought in was not exceptional for his quality like the Carroll transfer was. In other words, if Mashley was about to sell the club, flogging Cabaye would hardly benefit the owner one way or the other. I think Cabaye was sold because he wanted to go, unpalatable as that may be to us fans. Of course, its easier to blame Mashley and be spared the humiliation of rejection by a terrace idol who fancies a bigger, better paying club.

  • 32 Greebol1892 // Feb 17, 2014 at 3:52 AM

    I had a chat with one of the stewards once and mentioned that I’m off home to Gateshead. He said very seriously “well you’re not a proper Geordie – don’t come back, you must be a mackem”.
    I was born & bred next to the Town Moor – does that make me a mackem because I live in Gateshead? My birth certificate says Newcastle Upon Tyne. So should I give up supporting the club from the city I was born in and watch S*nderland instead???

  • 33 oldbobaycliffe // Feb 17, 2014 at 10:03 AM

    if sports direct were to pay 10million a year to nufc for the free advertising that could be used to start to reduce ashleys nufc debt to himself.get rid of pardew get a manager who will go all out to win one of the cups this weekend we had for the second time this season no game so no gate money no tv money yet still paying wages to players who did nothing to earn them.doedn,t make sence to me

  • 34 ogalaga_toon // Feb 17, 2014 at 6:08 PM

    Here’s to hoping some rich Arabs buy Newcastle

  • 35 hadthetshirt // Feb 17, 2014 at 8:03 PM

    @22 it wasnt long ago Brian Johnson (ACDC) was interested but too much money.There is a hellova lot of Toon fans among the showbizz world.You named 3 add Ant and Dec,Mark Knopfler,Robson Green,Cherly Cole,Brian Johnson,to name but a few and it’s not such a bad idea.The only thing would be to ask them all and to organise it.It wont happen but it’s not as funny an idea as you thought.




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