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.
Comments welcome.
77 comments so far
posada
Oct 7, 2017 at 12:01 PM
Comment #41Have to point out that some of Ed’s articles contain facts about NUFC that are totally inaccurate.
” Mike Ashley failed to do due diligence and did not know the club had debts of 100M”
Sorry, but that’s rubbish.
Everyone knew about that debt.
It was in the annual accounts and six monthly interim reports.
All Shareholders were sent copies of these documents while we had PLC status.
About 30M was less obvious. It was future income that had already been spent.
But, again it was no big secret.
Jib
Oct 7, 2017 at 12:09 PM
Comment #42posada
It’s not rubbish
from the Independent four years ago
in an interview with Martin Hardy
“After buying the club from Hall , Shepherd and other shareholders.
Ashley discovered debt, linked to previous transfers and a loan from Barclays that had financed the redevelopment of St James’ Park, that would have to be repaid. It is reckoned he spent £105m to clear these loans.”
AncientC
Oct 7, 2017 at 12:10 PM
Comment #43£65-70 million bank interest on £200 million over 10 years. That cannot be right. That’s more than 25%. Nobody would ever need to invest with interest rates like that.
Considering that the PL clubs have inflated in value due to owners of the bigger clubs, not the likes of Ashley, he will benefit from that inflation, but shouldn’t be expectant over it. SD has gained completely from the free advertising, which Ashley doesn’t completely own, she he is only partially benefiting, plus the revenue lost means Ashley is losing that money at point of sale.
All in all, Ashley stands to make a profit for himself, but it could have been a hell of a lot more he had ran the club properly.
Jib
Oct 7, 2017 at 12:17 PM
Comment #44£70 million on £200 million over 10 years is 3.5%
hibbit
Oct 7, 2017 at 12:19 PM
Comment #45i honestly don’t care what Ashley gets for the club if the buyers happy why should it bother us ???
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 12:20 PM
Comment #46AncientC…you hit the nail on the head with that closing statement…
…that sums up Mike Ashley to me…can’t really see what makes him a great businessman
AncientC
Oct 7, 2017 at 12:31 PM
Comment #47jesper, I would hazard a guess that Ashley’s business interests were taken out of his hands a long time ago, such was the demise of Sports Direct. I am sure Ashley still turns up and swaggers about in the SD offices, but most decisions are likely out of his hands now. Ashley’s team of advisors doing most of the thinking for him.
If Ashley is selling NUFC under advice, it would seem to be great advice, considering what a liability Ashley is to his own football club.
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 12:36 PM
Comment #48AncientC…that is most definitely the best news any of us could hope for…
…just hope what we get is not just as bad!
Still don’t know what to make of these Amanda Staveley rumours since there really isn’t anything concrete to report
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 12:59 PM
Comment #49So has Shelvey broken a finger or a hand?
Tsunki
Oct 7, 2017 at 1:07 PM
Comment #50Seeing as we are talking about the Big Cheese himself it’s good to note that tickets are on sale for the Big Cheese Festival in March down at Brighton. Theres also the Cheese Fest in Leamington in November, to whip up enthusiasm for the big one. Just in case this place isn’t cheesy enough.
Apart from that I’ve got nothing, sorry.
Tsunki
Oct 7, 2017 at 1:09 PM
Comment #51Cheese.
Optimistic Panda
Oct 7, 2017 at 1:10 PM
Comment #52Has Amanda bought Messi yet?
Ibizatoon
Oct 7, 2017 at 1:14 PM
Comment #53Well, it ain’t easy, being cheesy.
Has this Diame / Lascelles / Shelvey story been confirmed?
Jail for Ashley
Oct 7, 2017 at 1:15 PM
Comment #54The next MW,
As much as you can’t see Mikey do any wrong, surely even you don’t think it’s fair that he should have his cake and eat it, that money in the bank that he’s been losing interest on has been charged to us in free advertising, so he’s had about 80M there.
Optimistic Panda
Oct 7, 2017 at 1:15 PM
Comment #55Ibiza
The mag says the club confirmed it but gave no details.
Ibizatoon
Oct 7, 2017 at 1:19 PM
Comment #56OP…Cheers.
Jail..Do you not think using cake in an Ashley post just confuses matters?
Ron Knee
Oct 7, 2017 at 1:23 PM
Comment #57OP
Silva and Isco on the way, apparently!
Tsunki
Oct 7, 2017 at 1:26 PM
Comment #58Cake! Of course! And I went with cheese…..
So much to learn…
Ibizatoon
Oct 7, 2017 at 1:31 PM
Comment #59Tsunki…Come on man, you could have rolled that into cheesecake and saved yourself.
Tsunki
Oct 7, 2017 at 1:31 PM
Comment #60Small wonder investors are sniffing round pl clubs like punters at a car auction lot. Amazon are deafeningly schtum when asked to comment about their future plans on video streaming rights. Face book are less coy. You can imagine that the likes of these, Netflix etc are not going to let a global cash stream go unfettered for too much longer. The ideas of fans getting a “season ticket” for their own club, competition channels or subscribing to a cup run at a cut price have some legs. It’s going to happen, investors won’t want to be too slow to snap up the best club seats.
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 1:37 PM
Comment #61That was cheesy enough for all of us anyway Tsunki…but thanks for the info
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 1:39 PM
Comment #62I really should have refreshed before I posted…ohh well!
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 1:44 PM
Comment #63Speaking of cake
https://youtu.be/9XwbR7_k8Qc
Ibizatoon
Oct 7, 2017 at 2:00 PM
Comment #64‘alf the cake, ‘alf the calories!
YoungMag :P
Oct 7, 2017 at 2:01 PM
Comment #65With how some people are so pessimistic (understandable kinda) with this potential takeover. It wouldn’t suprise me if they said that it’s still speculation when it’s announced she’s the owner.
Ibizatoon
Oct 7, 2017 at 2:05 PM
Comment #66Despite talks of cheese and cake, that comment still sticks out as somewhat odd youngmag.
For me, there’s nothing “kinda” about it being understandable. There’s nothing concrete other than a picture of Amanda at SJP. With that in mind, why are those same pessimists deserving of a dig?
Optimistic Panda
Oct 7, 2017 at 2:09 PM
Comment #67If Amanda buys the club and makes it successful I’m going to watch Gateshead instead.
bettyswallocks
Oct 7, 2017 at 2:12 PM
Comment #68Jesper….. Big game for you lads tomorrow . Was just wondering if you’re going be allowed to watch the match?
Ibizatoon
Oct 7, 2017 at 2:12 PM
Comment #69OP…As always, your help is second to none 🙂
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 2:17 PM
Comment #70I think er deserve some wine (not whine) to go with that cheese and cake…
Youngmag…have some choclit mate
https://youtu.be/LBBZAETJZTA
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 2:18 PM
Comment #71*er = we
jesperfuglsang - capt'n awesome of the lemon crew
Oct 7, 2017 at 2:29 PM
Comment #72It sure is Betsy
lesh
Oct 7, 2017 at 2:29 PM
Comment #73If Ashley wants a quick sale, he should ask a realistic price for the club.
And, he could give ownership of the land at the Strawberry end he’s happy to profit from.
And, he should think again about including the £270m he claims he’s invested. A lot of that was invested to provide a buffet against the costs of two relegations which were in turn the result of his short sighted penny-pinching management!
And with a bit of luck, HMRC might just have Ashley, Llambias and possibly Carr in the frame for the alleged tax evasion activities. The HMRC intervention might just have prompted his well publicised ‘hand-off’ the management of the club – could that move of his have been too late?
Let’s hope he’s not greedy and realistic when dealing with potential buyers and let him enjoy the appreciation that will surely be shown by the long-suffering fans of Newcastle United.
lesh
Oct 7, 2017 at 2:33 PM
Comment #74Maybe the part of SI’s quote – ‘First of all Mike Ashley, with the help of Rafa Benitez, has managed to get Newcastle back into the Premier League’ should have been edited to read
First of all Rafa Benitez, despite the ‘help’ of Mike Ashley, has managed to get Newcastle back into the Premier League.
lesh
Oct 7, 2017 at 2:45 PM
Comment #75Whoops
provide a buffet* against the costs should’ve read buffer.
It’s all this talk of cheese, cheesecake, wine and chocolate that’s affected the phone’s auto correct.
Mmm, that post could’ve been Briefer. (Brie, geddit?). Harrumph
Tsunki
Oct 7, 2017 at 2:50 PM
Comment #76Where’s gorgonzola when you need him/her?
ITUNDERASHELL
Oct 7, 2017 at 11:28 PM
Comment #77HMRC investigation is THE ONLY REASON he is going to bail out.
He will still try to extract as much cash as possible before he goes to prison.
http://www.mirror.co.uk/sport/football/news/newcastle-united-facing-major-tax-11305023