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

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Why Potential Buyers Turn Away From Newcastle

8:32 am, Thursday, April 7th, 2016 by Dr. Ed Harrison · 17 Comments

Newcastle United have owed Mike Ashley about £129M for a few years now and the club seems not particularly keen  to want to pay off that loan with some of the profits the club has made over the last few years.

And Mike Ashley doesn´t seem too keen to want it paid back any time soon.

The loan is interest free.

But The Times is reporting today that potential buyers of the club would need to pay off that loan as well as a fee for the club if they were to buy Newcastle United – which is true – and would make Newcastle £129M more expensive than another club that has zero debt.


Mike Ashley – Newcastle owner

But then the question would be how much would Mike ask for the club,  given the potential buyers would have to cough up another £129M?

Another way to look at all of this is that Mike paid about £135M for the club in the summer of 2007 and then ploughed £129M in loans into the club – so his investment in Newcastle is around £264M – as far as we can tell.

He would want at least that back if he sold Newcastle, so the price for Newcastle could be £135M plus paying off the loan – if Ashley only wanted his money back.

The £129M was made up of him covering a £100M debt he didn´t know about when he coughed up £135M for Newcastle  in 2007 and then Chairman Chris Mort found out about the debt in September of 2007 when going more thoroughly through the books.

Then Mike loaned the club about £29M to help shore up things financially when we were down in the Championship for one season in 2009-2010.

But the biggest problem is getting the Billionaire to sell up and last time we were relegated he put the club up for sale but it was a complete circus, which went on until he said he would keep the club.

And it would need some potential buyer to want to buy a Championship club – and they wouldn´t want to pay £260M for one – that´s for sure.

So for Ashley to sell the club when we are in the English second division would mean him taking a big loss on the club and he wouldn´t want to do that.

Only recently did Mike Ashley say that he and Newcastle were wedded to each other and he wasn´t interested in selling even if we are relegated:

Do I regret getting into football? The answer is yes. I have had tons of fun in it but I haven’t been able to make the difference I wanted to like I have at Sports Direct.

“I wanted to help Newcastle.”  “I wanted to make it better. I do not seem to have had that effect.”

“I’ve got no choice but stay if we are relegated,” “I am wedded to Newcastle like Sports Direct and they’ve got me and I’ve got them. That’s just the way it is.”

But the big trouble is it´s been a  bad wedding from the get go.

Comments welcome.

Tags: Financial Fair Play · Financials · Newcastle News · Prayer · Premier League · Transfer News and Rumours

17 responses so far ↓

  • 1 mindshaft // Apr 7, 2016 at 8:40 AM

    Ashley won’t sell, we’ll need to sell a lot of players and hope the remaining players are good enough to push for promotion in the championship
    Gini,Tiote, Sissoko , Cisse , Janmaat will be first out the door and should generate about 50 million
    wouldn’t be surprised to see Mbemba, mitrovic and Shelvey join them

  • 2 scout // Apr 7, 2016 at 8:47 AM

    He bought a Premiership club and hes selling a championship one. He aint getting his money back is he. Surely even the bag man recognises that.

  • 3 Lindisfarne // Apr 7, 2016 at 8:48 AM

    Not looking good at all and no hope of getting lucky. There is more chance that we will be looking at a 0-0 and make a slip up.

    Southampton v Newcastle 15:00

    Results of each team’s last 5 matches across all leagues and competitions

    Southampton last 5 matches (most recent first):
    03/04/16 (a) Leicester 1-0 L
    20/03/16 (h) Liverpool 3-2 W
    12/03/16 (a) Stoke 1-2 W
    05/03/16 (h) Sunderland 1-1 D
    01/03/16 (a) Bournemouth 2-0 L

    Newcastle last 5 matches (most recent first):
    02/04/16 (a) Norwich 3-2 L
    20/03/16 (h) Sunderland 1-1 D
    14/03/16 (a) Leicester 1-0 L
    05/03/16 (h) Bournemouth 1-3 L
    02/03/16 (a) Stoke 1-0 L

    Last time they met: Newcastle 2-2 Southampton

  • 4 Jail for Ashley // Apr 7, 2016 at 8:49 AM

    He’s a natural born liar. He didn’t want to make it better at all. He wanted us to be in a perpetual state of mediocrity. He has had ample opportunity to make us a better club but has opted for mid table with no cups. Liar!

  • 5 martoon // Apr 7, 2016 at 8:50 AM

    If Colo is fit maybe we could play Mbemba at LB – Against Norwich they targeted the LB position knowing it was a weakness. I can’t help but feel Southampton will do the same thing so we need a good defender to play there.

  • 6 Slank // Apr 7, 2016 at 8:55 AM


    You are working on a rationale profit and loss basis but people who are worth billions don’t necessarily see it that way.

    It’s a mark of prestige to very wealthy foreigners to own an English Premiership club. The money is secondary.

    If a very wealthy person or persons want a Premiership club they will pay whatever the price is. Ashley knows this.

    Ashley doesn’t need to sell. I suspect he will only sell when he has won something as that will satisfy his pride / vanity.

  • 7 Lindisfarne // Apr 7, 2016 at 8:58 AM

    Bung, bung, bung, bung, bung
    Mr Bagman, is a nightmare
    Gets to 5th and it goes down from there.
    Does not get it and he never will
    Please pack your bags and go over the hill.

    Mr Bagman, is a nightmare
    Bung, bung, bung, bung, bung.

  • 8 scout // Apr 7, 2016 at 9:12 AM

    Thats cheered me up Lindi

  • 9 Jib // Apr 7, 2016 at 9:32 AM

    Why anybody should think a debt of £129million to Mike Ashley would put off potential buyers is weird.
    I cannot think of one club that has changed hands in the last 10 years that didn’t have a massive bank overdraft.
    Every PL club with the new media deal is a juicy target.
    Ashley could have sold the club instantly over the last 3 years had he wanted to.

    I personally think it’s great we have sailed so close to the edge of the world.

    If we don’t fall off we’ll have a proper navigator and crew again .

  • 10 posada // Apr 7, 2016 at 10:19 AM

    This article is nonsense.
    There was NEVER a hidden debt of 100 Million.
    A lot of the clubs debt was a result of the ground improvements. We went from a 36000 to a 52000 seater stadium incase anyone has forgotten.
    From memory I think that was 50-60 Mill. Every time we have more than 36 thou in the ground that debt repays itself.
    Some future income had already been spent. Probably to secure the services of Owen and Luque. Not money well spent but it came to about 30 Mill.
    Even that was not a big secret and should not bother a supposed big shot like MA.

  • 11 Sav // Apr 7, 2016 at 10:20 AM

    I think its fair to say there’s considerable depreciation to be taken into account since Mike bought the club. This is the flawed model of ownership of clubs. The fans, who have poured in millions, not to speak of vocal support and emotional investment, get nowt back. While a bloke with cash and little or no interest or expertise wants to get every penny and hopes for a few extra bob for his troubles?

  • 12 Sav // Apr 7, 2016 at 10:21 AM

    We are no more than consumers or customers in this bleak view.

  • 13 posada // Apr 7, 2016 at 10:24 AM

    Mike Ashley owns the club 100 %.
    We have no say in the matter so why would we concern ourselves with his financial arrangements.
    Mike Ashley chooses to employ fools who waste his money.
    80 Million this year.
    Again, we can do nowt about that either.

  • 14 posada // Apr 7, 2016 at 10:30 AM

    You are very right. As things stand we are just customers and NUFC is a business.
    That is wrong because the club is a part of the community and the general well being of the city.
    It generates a lot of business on match weekends etc and as individuals our own well being goes up and down.
    For that to be in the hands of Mike Ashley is dreadful.
    But, money talks and is the only thing that matters to the powers that be.
    An owner of a football club should regard it as a great priviledge and his/her duty to do the right thing for the supporters, the community and the city.
    Someone tell Ashley.

  • 15 martoon // Apr 7, 2016 at 12:25 PM

    posada – there is something dreadfully wrong with your maths 36000 x 35 (average ticket price) = 1260000 about £1.25m – a full season has 19 games so £1.25 x 19 = £23.77m – nowhere near. Plus have you ever heard of overheads and running costs?

  • 16 posada // Apr 7, 2016 at 8:19 PM

    Nowt wrong with the maths.
    An extra 15 thousand supporters paying just £25 a ticket adds up to 375K per game. Over 7 Million per 19 game season.
    More than enough to service the debt to build the stadium extension.
    A debt now taken over by Ashley. But the asset, namely a 52000 seater stadium is still there.

  • 17 mactoon // Apr 8, 2016 at 7:26 PM

    The club seems not particularly keen to want to pay off that loan with some of the profits the club has made over the last few years. Seriously?

    Ashley put that loan in place knowing full well it gave him a hold on the club.

    IT’S HIS CLUB and his decision!

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