Sport illustrated had a good report out earlier this week looking at Newcastle United and why it would be a good time for Mike Ashley to sell the club.
It appears that Mike is not willing to invest any more money into the club and that includes the January transfer window so if he’s still in charge may be Rafa has to sell before he can buy in January?
That would not be good.
And it could be one reason potential buyers of the club want to push through a deal quickly, but it all depends on the price Mike Ashley is asking for the club.
The latest was he wants £380M for Newcastle after investing around £270M into the club since May 2007.
Newcastle owner Mike Ashley
Sports Illustrated make some excellent point about the business of buying a club like Newcastle United – who are back in the big time and big money.
Here’s an extract from the SI article:
First of all Mike Ashley, with the help of Rafa Benitez, has managed to get Newcastle back into the Premier League.
This is a huge deal for any potential investors as the Premier League is one of the richest leagues in the world and therefore the most lucrative.
With even more TV funding set to be injected into the league next season, any Premier League club still in the English top flight will be seen as a good investment.
With a world-class manager currently at the helm of the club, in the form of Rafa Benitez, this also gives any potential investor the confidence that they will be in the Premier League for many years to come, without having to make drastic changes.
Newcastle have also started off the season well, but with Ashley saying he’s running out of cash for further investment, from a business perspective it seems sensible to sell the club before he starts losing money.
Losing Rafa Benitez, due to a lack of funding is also possible, which would be catastrophic for the team’s chances of remaining in the top flight.
If Mike Ashley is no longer interested in investing money into the club and therefore presumably not willing to fully support Rafa Benitez, it’s in his best interest to sell now.
While we still have Rafa Benitez at the helm as Sports Illustrated right point out.
It looks like selling before January makes sense to both Mike Ashley and any buyers.
We hope that happens – but of course, anything can happen especially when Mike Ashley is involved.
We have found that out many times over the last 10 years.