There is a report in Asia today that Amanda Staveley has agreed on a price for Newcastle United and certainly, as we have reported before, that would be the next news coming out if Amanda’s group is to buy Newcastle United.
It’s the Indonesian media outlet Semuanyabola that are reporting that Mike Ashley has accepted a £300M bid from Staveley and her PCP partners and wants the deal done by December.
Just to put a bit of a damper on that report, the Chronicle is reporting that club sources have poured cold water on the deal and say it’s simply not true.
In fact, the Chronicle are reporting the deal is no further along than it was three weeks ago.
Amanda Staveley – likely new owner of Newcastle United
But Amanda Staveley and her PCP Partners group will have done three weeks more due diligence during that time – and due diligence is the most important part of any merger or acquisition.
And the next step, if Staveley is going to buy the club, is to agree on a price, which is done after due diligence is completed.
A portion of the report from Semuanyabola includes the following statements:
“Amanda Staveley and PCP Partners are rumored to have taken over Premier League club Newcastle United at £300 million from the original owner, Mike Ashley.”
“The Staveley-led group has been discussing with Mike Ashley after signing an undisclosed deal and has entered its due diligence to assess the club’s finances.”
“It is now believed that PCP Partners estimated the value of Newcastle United worth £300 million and investment in players will be made when the agreement of both sides is successfully signed.”
“Reports from the UAE suggested Amanda Staveley wants all the dealings to be dealt with before December this year to give Rafa Benitez a chance to plan the player transfer strategy in early 2018.”
This report could be close to the truth because it would not be too surprising if Mike Ashley dismisses the rumors before any deal is sealed.
The main thing is to get the deal signed and sealed although it is just a little suspicious that Mike has quickly agreed to Staveley’s estimate of £300M for the club.
But that price covers Mike’s total investment in the club and gives him about a £40M profit.
There have been reports in the Chronicle up to this point that top financier Amanda Staveley wanted the deal completed in November – and at least this Asian report is consistent with that.
One thing PCP Partners will want to do is to give Rafa sufficient finances and time to bring in some good players in January – that’s the first step in rebuilding Newcastle United into a top team in Europe.
Sounds good to us.
And we would not dismiss this report out of hand – whatever the club says.