Ashley Now Willing To Sell Newcastle – Chinese Consortium Interested

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Sky Sports are reporting there is a significant takeover interest from one Chinese consortium and in addition to that there are number of other international groups who are considering buying the north-east club or part of the club from current owner Mike Ashley.

The Telegraph have also reported that at the meeting between Mike Ashley and Rafa Benitez a few days after the final day of the Championship season, Mike Ashley informed Rafa that he had offers from various groups including one from a Chinese consortium.

It is reported that Mike will be willing to sell a part of Newcastle, because he does not think any group is willing to pay £400M for the club, which is his current price to buy Newcastle outright.

Mike Ashley with Rafa Benitez and Lee Charnley

He may be surprised by that, since £400M seems to be a fairly reasonable price given the upside with Newcastle United under the world-class management of Rafa Benitez and the club now likely to get around £125M next May from the Premier League if we finish around 10th place in the Premier League..

Selling the club at £400M would give Ashley about a £130M profit, since he bought the club in May of 2007.

And even last October when Newcastle were still a second division side there were various reports in the press of interest from China of a potential takeover bid.

It’s not surprising that a club as big as Newcastle  United, now back in the Premier League, are attracting some big interest.

Rafa Benitez is being kept up to date on the situation and he is said to be calm and relaxed about the whole situation.

What’s new?

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Indeed if Mike can get additional investment it could be that Rafa will get even more money to spend this summer in the transfer market, with the Telegraph today reporting he has been given £100M this summer to spend.

We assume in addition to that he can spend any money he makes from selling players in the transfer market.

But any new investment into transfers would need to abide by the Financial Fair Play Rules that are now in place.

When Newcastle announced their new sponsorship deal with Chinese gaming company Fun88, there was speculation the Newcastle delegation that visited China, which was led by Managing Director Lee Charnley, could even have touched base with the consortium that is reported interested in buying Newcastle.

The negotiations with various groups about buying a part or all of Newcastle are said to be ongoing and Mike Ashley is reported by the Telegraph to be keeping the Newcastle manager fully up to date with the progress of those negotiations.

It seems the owner wants to sell a part of Newcastle and get some new investment and help in running the club from a consortium, yet probably still keep control of the club.

However, if a group comes along with a bid of £400M the reports are that Mike could then sell the whole club and relinquish his ownership.

What do you think?

Comments welcome.



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