We haven’t heard too much of any takeover news over the last few weeks as we are told there are up to five consortia taking a deep dive into the Newcastle United financial accounts.
This is due diligence which can take anywhere from a few weeks to several months, and it’s an important step to understand the financial strength or otherwise of the club.
When Mike Ashley bought the club, he rushed through the due diligence to buy the club and didn’t notice that Newcastle owed £100M.
In October of 2007, he covered that loan with an interest-free loan using his own money.
That helped to stabilize Newcastle financially at that time.
Here’s a report from the Evening Standard on that first mistake by the current Newcastle owner.
Amanda Staveley – new Newcastle owner?
Consortia will also be looking at how Newcastle can perform in the future with the TV rights for the Premier League expected to keep increasing over at least the next six years.
The favorite is still Amanda Staveley’s PCP Capital Partners group and she is reported to be in discussions with the club as she puts together a consortium backed by Middle East and perhaps some Chinese investors too.
Ashley still wants a deal completed by the end of the year and given that’s the case – it remains possible if not probable.
But we will need to hear some big news – like the price has been agreed – before the end of this month for the sale to go ahead before next year.
As far as Rafa is concerned, he needs a number of reinforcements brought in, and there’s only so far you can go in the Premier League with mediocre players.
Rafa must be backed in the upcoming January transfer window – the stakes are simply too high not to back the manager.
Rafa has got the team well-drilled, but we are still losing too many games though lapses in concentration.
Whether new owners are in by January or not, Rafa will push hard for new players, and he will be willing to sell players to fund the transfers.
The very last thing we want is to be fighting relegation this season so at the very least Rafa must be supported in the January transfer window.
Even by Mike Ashley – if he’s still the owner by then.
We need a couple of strikers – a creative midfield player and a left back in January, and if we can get four good players in that will help the team enormously for the rest of the campaign.
What do you think?