Newcastle Have Interest From Buyers – Look A Good Buy At New Lowered Price

There’s news today in the Times that Mike Ashley is in talks with potential buyers (plural) of Newcastle United.

Of course, we have had a lot of this in the past and nothing has come of it.

But with world-class Rafa Benitez already in place, looking the perfect manager for the club,  and doing well at 4th top of the Premier League, it has to be more enticing for any buyer to snap up Newcastle now

They would get a club just as the Rafa revolution is starting to get underway.

When any buyer starts to get serious about an acquisition, they start to do due diligence and get access to the detailed financials of the club or company.

That’s unless you are Mike Ashley who skipped on this importsnt step in May 2007 when he bought Newcastle. and then found out before the end of the year the club owed 100M whuch he didn’t know about. – so it’s an imnportant step.

Mike then found out before the end of the year the club owed  £100M which he didn’t know about.

So due diligence is an important step in any acquisition.

And before they do that the potential buyers have to sign non-disclosure agreements so they don’t go out and tell everybody what they found out,  but rather keep it confidential.

The Times report talks about potential buyers already having signed non-disclosure agreements so at least the potential buyers are interested and doing some initial due diligence on Newcastle.

Mike Ashley – will he finally sell Newcastle?

The price put on the club of £400M in the summer by owner Mike Ashley has also been reduced slightly (5%) to £380M and that would still give Mike a profit of around £100M.

Mike Ashley has put around £280M into the club.

Buyers of Premier League clubs tend to prefer London based or southern-based clubs and one disadvantage at Newcastle is the geographic location.

But on the other hand, Newcastle are guaranteed home crowds of over 52,000 and have some of the best supporters anywhere.

And with the current Premier League TV rights deal of  £5.1B, we are almost guaranteed maybe as much as £150M a year – which is likely to go even higher in future years.

So it looks that at £380M, Newcastle with Rafa Benitez in place could be a good buy for a rich and ambitious consortium., and that price is just over twice the amount we are almost guaranteed from the PL TV rights deal.

The buying price is just over twice the amount we are almost guaranteed from the PL TV rights deal.

We’ll just have to hope investors also think that’s a good deal – and that Newcastle are sold – maybe even this season.

Rafa has put together a good team while spending only £12M net last summer.

So if he was allowed to spend £100M net next summer, we could have a strong team next season and be immediately fighting for a top four position.

That sounds good!

What do you think?

Comments welcome.

29 comments so far

  • Ron Knee

    Sep 23, 2017 at 1:11 PM

    Comment #1

    Not looking good for WHam today.

  • Lindisfarne

    Sep 23, 2017 at 1:13 PM

    Comment #2

    I am looking forward to catching up with lasts nights Sports Social on last night, I only caught the end where they were comparing Rafa to Pulis, Fat Sam and Hodgeson!

  • Essex Geordie Bill

    Sep 23, 2017 at 1:25 PM

    Comment #3

    Another copy and paste for the the Rafa bingo, thank you Ed.

    Yedlin Lascelles (c) Clark Mbemba
    Hayden Merino
    Ritchie Perez Atsu

    2-0 to us with Joselu to score at least one of them.

    Only change I can see would be Shelvey for Hayden, think that’s unlikely though.

    Whilst I was in the Cirencester area recently I happened to drive past the Forest Green ground which surprised me as I thought it was a London team. It’s way out in the sticks but it shows how little clubs like that can step up the league system. Still hope for Gateshead then. 🙂

    I caught a bit of their game last night and (if I’ve got it right) apparently one of their principals is that none of the players eat meat. This seemingly is why they have a very low incidence of soft tissue injuries.

    Just another useless fact to add to the blog, if any one is interested.

  • expatmag

    Sep 23, 2017 at 1:25 PM

    Comment #4


    Noted mate….but practice makes perfect in that art….lol


    We are fine mate. Elena is doing really well in her school. Highly rated by the Principal. Rosie still top of her class in everything. She just finished her season with a local soccer team ubder 12 girls. Plaued every game and made left back her own position.

    Thanks for the advice but the flowers did the trick and I am back in the good books again

  • Lindisfarne

    Sep 23, 2017 at 1:27 PM

    Comment #5

    I agree with Ed, unchanged staring eleven tomorrow with plenty of opportunities to change during the match if need be.

  • Essex Geordie Bill

    Sep 23, 2017 at 1:28 PM

    Comment #6

    And it’s a football related topic. 🙂

  • nufc 11

    Sep 23, 2017 at 1:28 PM

    Comment #7

    Maybe this is the only reason that rafa is still here because this deal was close still though I’d like to be hearing these reports if the deal was agreed in principle or something like that Mike Ashley is not to be trusted.

  • DaveD1000

    Sep 23, 2017 at 1:31 PM

    Comment #8

    5% discount…pushing the boat oot a bit there Mike boy

  • expatmag

    Sep 23, 2017 at 1:34 PM

    Comment #9


    Rafa is still here purely out of interest for the fans and the city. If the club is bought out, I dare say he is a crucial factor in negotiations

  • FollowFollow

    Sep 23, 2017 at 1:35 PM

    Comment #10

    Regarding this thread, I think this is the time it will happen and it will happen by Christmas as long as we remain in a comfortable position in the table. For the first time, both parties can get a good deal. A nice profit for Ashley and upside for a buyer.

  • geordieviking

    Sep 23, 2017 at 1:44 PM

    Comment #11

    Lindisfarne @2

    Sounds more like find the odd man out.?

  • Chancel be a fine thing

    Sep 23, 2017 at 1:46 PM

    Comment #12

    With Shelvey, seems he’s going through the same patterns as with other clubs. I suspect he’ll fight valliantly with Mr Sulk for a few weeks, but if he’s not back in the first team quickly, the Sulk’s gonna be the winner. It’s relatively easy to recognise patterns in ourselves, but it’s another thing to root out our reasons for chosing these patterns and to change them. With Shelvey, he recognises he can get angry and lash out in a stupid manner, but stopping it? Likewise I think with his sulking. Newcastle are apparently looking for a first team ready central midfielder in Jan (accoring to chronic). Could be as propper competition for the Holden role, but I was wondering if Rafa was thinking of selling Shelvey. My thinking being, he’s the highest earner at the club; for his wages you could easily have two good players from foreign leagues for the same money. If Shelvey and Merino are not going to be played together, then shelvey is no.2 for me. He doesn’t have the temperament to be second choice. If he’s going to be sold, best now before the big sulk and while he’s seen in a good light as a player. Difficult to get rid, doubt anyone would match his wages. Just a few thoughts around the squad/finance angle.

  • expatmag

    Sep 23, 2017 at 1:51 PM

    Comment #13


    Alright saying sell him but who would buy him for the money we would want?
    How old is he? 25, 26… his prime really but he has already been with Charlton Liverpool Swansea and us now.

  • Billy Whitehursts V sign

    Sep 23, 2017 at 1:53 PM

    Comment #14

    Listening to spuds game on the radio, (they sound good) and even when just reading out their teamsheet the name Sissoko is followed immediately by the word Dier, made me chuckle 🙂

  • DubaiMicky

    Sep 23, 2017 at 1:54 PM

    Comment #15

    Buying for 380, 150 per year coming in for TV alone, add season tickets, advertising, shirts etc, let’s say £200m/year. Paid for in 2 years, (yes I know running costs need to be taken out but still), you own the ground too.

    Now that’s a good buy, but add in Rafa and 52,000 mad Geordies and I reckon that’s a bargain.

  • Douglas

    Sep 23, 2017 at 1:59 PM

    Comment #16

    The bad news about Ashley selling is that he will not provide any transfer funds in the January window.

  • expatmag

    Sep 23, 2017 at 2:01 PM

    Comment #17


    Seeing you are over there, can you whistle up some rich srab who can take the club off Ashleys hands?

  • magscar

    Sep 23, 2017 at 2:03 PM

    Comment #18


    Most if not all would be for sale at right price to let Rafa wheel and deal. Having said that most will be priced highly and as we saw in Summer 16 he doesn’t let player’s go for low prices so no mass exodus expected but odd one in Jan??

  • Lindisfarne

    Sep 23, 2017 at 2:04 PM

    Comment #19


  • Lindisfarne

    Sep 23, 2017 at 2:06 PM

    Comment #20

    It does, however they were discussing a description of how Rafa has set the team up as hard to beat.

  • Chancel be a fine thing

    Sep 23, 2017 at 2:12 PM

    Comment #21

    I agree, very difficult to shift him. I was thinking the releasing of the wages being the impotant thing and selling him for 8 million give or take, would be worth that for a championship team on the way up. Just seems that when a premier league team is looking to upgrade, he’s one of the first ones dropped. Could be argued that he’s somewhat unlucky in having Merino as his competition in this case. It’s just a guess as, I don’t know the specifics of Swansea and Liverpool. I was seeing him in that Ben Arfa light: does brilliant things, but the team functions better without him.

  • Billy Whitehursts V sign

    Sep 23, 2017 at 2:56 PM

    Comment #22

    Iam not certain that big business, multi billionaires and countries buy football clubs to make money dorectly from the actual clubs themselves?

    There isn’t a lot of evidence of money being withdrawn from the game by owners, other than to service football related debts tbey incurred in purchasing.

    It seems, as in Ashley”s case, that it is often a promotional vehicle. I susoect, Ashley also wanted it to be fun, not sure that has worked out after the first few months in the Big Market!

    However, at 380 million and with income expected to increase due to demand from the likes of Amazon and google. It could be a bargain. Allowing for operating costs

  • Billy Whitehursts V sign

    Sep 23, 2017 at 2:57 PM

    Comment #23

    ….etc it should be possible to make and take a sustainable profit?

  • sickandtired

    Sep 23, 2017 at 3:13 PM

    Comment #24

    Ed, come on. Are you really still buying the line that Ashley did no due diligence on the Club before he bought it? Like this multi Billionaire couldn’t even conduct a mortgage check- it’s a ludicrous belief to maintain.
    That and the fact that recently it was suggested was released 6 months before the sale went through.
    He knew what he was buying – for how much and what for.

  • toonluvva

    Sep 23, 2017 at 4:42 PM

    Comment #25

    Can you imagine a St James’s Park not covered with SportsDirect adverts?

    Can you imagine new owners who are actively encouraging companies to place their adverts pitch side. Not that advertisers will need much encouragement, I expect the new owners to beating them off with a stick.

    Can you you imagine NUFC being run by a board that doesn’t include Mr Charnley, or managers of the likes of Kinnear, Pardew or McClaren?

    Can you imagine a NUFC club that wants to compete in all competitions?

    Can you imagine a situation where Rafa is assisted as far is possible in his pursuit of transfer targets.

    If you can, then this can only come true if and when Mr Ashley sells up.

    Still we can only dream, can’t you.

  • toonluvva

    Sep 23, 2017 at 4:49 PM

    Comment #26

    Can you imagine the news filtering through that Mr Ashley has finally sold up. It will trickle through at first by word of mouth, then slowly social media will burst into life as the joyous tidings are spread not only across Tyneside then to the whole world.

    Can you imagine a year with two Christmas Days?

    Please don’t delay. Sell up today!

  • DubaiMicky

    Sep 23, 2017 at 10:21 PM

    Comment #27

    @Expat mag The Mactoum’s (Dubai Rulers) looked at Toon around 2006/7, they turned it down because they weren’t happy with the finances (did their due diligence), then the crash came along so that was shelved. Now Dubai can’t really afford it – yes building another tower block on a bit of sand with no real value is easy, and they get a payback, but they won’t gamble on The Toon. Abu Dhabi won’t buy another team, Qatar may, but they have a shed load of problems at the moment with embargos etc.- Qatar would also want a London Club – well they own The Shard/Harrods and many more.
    Thing is, looking at foreign takeovers – more have failed, from Hull to Blackburn, now at WBA, than have really succeeded, if any VC Company would take it off Ashley’s hands it would be a US/USA partnership I think (and would relish), but then the risks are huge, and football is still a money pit.
    It’s all well and good saying Manure, Real and Barca are “worth” 3bn each, but only if there’s someone willing to buy them. However if you look at Spurs, worth a billion and us worth 380m – where is the real difference – other than the land value of what was White Hart Lane?
    I’d be very concerned if a Chinese (or any far East) consortium bought us.
    Sometimes it’s better the devil you know.

  • dannitoon

    Sep 24, 2017 at 8:26 AM

    Comment #28

    Utter bollox, geographic disadvantage.. its england… ffs usa and china have bigger mileage between cities than we have as a whole country

  • Doontoon

    Sep 24, 2017 at 8:51 AM

    Comment #29

    Why doesn’t Mike put a price of 1 billion on our club then put a big Sports direct sticker on it saying it’s got 60% off? It fools millions every week into buying.


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