Takeover Update: PCP Capital Partners Could Fund Newcastle Bid With No Outside Investors


Newcastle made the front pages of the Financial Times (FT) this weekend with news about the potential takeover of the club by Amanda Staveley and her PCP Capital Partners group fronting the deal.

The investors are said to come from the Middle-East with some reports saying there is also some Chinese investment.

The Financial Times reports they think it’s going to be difficult now for the deal to close before the end of the year with the price still to be agreed between the two parties.

Once a deal is agreed in principle (which must include the price) there begins an exclusivity period of between 30 and 60 days (it can vary with each deal) so that the deal can be completed with the prospective buyer.

During this time the seller cannot enter into any communication or contact with other potential buyers.

Amanda Staveley – potential new owner of Newcastle

The FT is also reporting they think the first bid was worth around £260M which is interesting as that’s about what Mike Ashley has invested in the club.

He paid £134M to initially buy the club’s outstanding shares and then around £130M in interest-free loans.

They also claim the opening bid came a week last Thursday and was around £260M; nobody has mentioned specifically what the fee was other than it was fairly close to £300M if all conditions were met.

But the first bid had various clauses in it that Mike Ashley didn’t particularly like – including one which penalized Ashley if the club were relegated this season.

That clause is now unlikely to go away with Newcastle starting to struggle in the league table.

That could even be the stumbling block to a deal that may still not happen – even though Newcastle fans are hoping and praying a deal can be made.

This is some of the FT report as published today by the Chronicle:

“Questions remain over her latest approach for NUFC, not least around the identity of investors in the PCP fund bidding for the club.”

“While Ms. Staveley has lined up investors from Dubai and Saudi Arabia, those with knowledge of the situation say much will depend on the structure of a successful bid.”

“PCP could finance a smaller sum, or a deal via installments, with no outside investors.”

“Mr. Ashley’s allies, meanwhile, have expressed frustration that publication of selective details of Ms Staveley’s offer, which they regard as untenably low and riddled with conditionality, could raise unrealistic hopes among fans.”

It’s interesting that PCP Capital Partners could bid for the club with no outside investors needed.

Maybe the best approach is to pay Mike Ashley over say five years – that would make it a lot easier financially for any buyer and Ashley is willing to defer the payments.

If these negotiations drag on and Newcastle keep dropping in the league table and Ashley will not allow a relegation clause in the deal – then the possibility of a deal will likely diminish substantially.

What do you think?

Comments welcome.



You can share this articleShare on FacebookShare on Google+Tweet about this on TwitterEmail this to someonePin on PinterestDigg thisShare on LinkedInShare on RedditShare on Tumblr

32 comments so far

  • YoungMag :P

    Nov 26, 2017 at 2:04 PM

    Comment #1

    Repost (wholeheartedly sorry jail)

    He has Gayle aswell but it doesn’t seem to work at this level?

    He’s no Gerrard. Which he seems to think he is.

    I just think he’s average in the premier league. Every team knows what he’s going to try and do when he receives the ball.

    Merino passes it quicker and along the ground more, it just works a whole lot better for us.

    1
  • Toonces

    Nov 26, 2017 at 2:05 PM

    Comment #2

    Re-post

    3 at the back might not be a bad shout. Not sure about ritchie having to be a full wingback though.

    But I would suggest that against certain teams a back 4 of Mbemba – Lascelles – Clark – Dummett might be a quite strong rear-guard. All 4 have a physical presence and enough athletic ability. We need everyone healthy to do that but I think it could make a difference. Manquillo needs to sit. Mbemba needs to play in his spot until Dummett is healthy. If we need the speed that Yedlin brings at RB, then Mbemba should be given a run at DM, knocking Hayden to the bench.

    But I think the biggest miss during this run of poor results was Merino being injured along with Lascelles. Merino’s class in the middle of the pitch makes all the difference. Lascelles is the only reasonably decent leader in the team. These last 4 games prove that we don’t have the depth to handle injuries to key players.

    The next place to improve, as others have mentioned, is in goal. Rafa was right in his assessment of our goalkeepers, we definitely need an upgrade – mainly in experience and leadership. If Roma doesn’t make the next round of the UCL, do you think we go back for Reina? Set up a future of Woodman being groomed for the #1 spot by Reina. One of Elliott and Darlow can be sent away. They’re too flappy and don’t command their area.

    2
  • Toonces

    Nov 26, 2017 at 2:08 PM

    Comment #3

    Sorry – meant Napoli not Roma re: Reina.

    0
  • AncientC

    Nov 26, 2017 at 2:09 PM

    Comment #4

    ‘The first bid had various clauses in it that Mike Ashley didn’t particularly like – including one which penalized Ashley if the club were relegated this season.’

    Sounds fair to me if it is Ashley that needs the money. The optimal time to buy the club would be once safety is assured, or next summer. Why would a buyer pay top price for a club during a period of high risk—the ball is in Ashley’s court.

    1
  • ronaldo aarons

    Nov 26, 2017 at 2:09 PM

    Comment #5

    Ancient
    Last thread. Top of my head, the last time broke the offside trap was mitro goal v West Ham.

    0
  • SecretSausage

    Nov 26, 2017 at 2:11 PM

    Comment #6

    I posted something about this last night but thought I would mention it again.
    From a great source before the match yesterday I was told the takeover is 100% going ahead before Dec17th. The buyers are very similar and from the same area as the Mansours and it is going to be unlimited funds.
    The guy I spoke to was very confident of this and it came from someone who was with Staveley at the match vs Liverpool.
    Apparently these people just get whatever they want. They knew Ashley would try and throw a spanner in the works and it was all planned around that. I was even told that from what they are wanting to achieve, the stadium is simply not big enough.

    So personally I think this fits in with what we all know. She came to Newcastle before Man City on two occassions and Ashley knocked her back. So we were the first choice. Now Man City can’t even sell their seats yet we had 52k in the championship. No wonder they next big buyers have gone to her and in turn come to us. We are basically the biggest untapped potential of a club as far as I can possibly in the world.

    If we had a 90k stadium and a team like Man City would we sell it out? Certainly possible.

    16
  • AncientC

    Nov 26, 2017 at 2:12 PM

    Comment #7

    I was impressed by Defoe’s movement when he came on against Newcastle. A player with movement like Defoe could thrive off Shelvey. Defoe was curving his runs, trying to get into the space between defenders and running across the back line. Gayle’s finishing is quite good, but he can be fairly anonymous most of the time. Hopefully the position of forward (with pace) is an upgrade we will see sooner rather than later.

    0
  • AncientC

    Nov 26, 2017 at 2:14 PM

    Comment #8

    ronaldo, yes, I recall that one now. Mitrovic does press the offside trap quite well for a heavier set type player.

    1
  • yorkymag

    Nov 26, 2017 at 2:16 PM

    Comment #9

    Sausage
    I think you have too much orange juice

    1
  • jane

    Nov 26, 2017 at 2:21 PM

    Comment #10

    as well as Lascelles and Merino, Perez from the start is the other missing piece from the hard working compact unit that was working better earlier in the season, i hope and expect all three to return against WBA.

    1
  • Jib

    Nov 26, 2017 at 2:23 PM

    Comment #11

    I think as we approach Christmas the
    deal should include a Sanity Clause

    I’ll get me coat

    2
  • jane

    Nov 26, 2017 at 2:23 PM

    Comment #12

    if PCP can only just about fund the purchase themselves would they have much funds for transfers?

    3
  • Frank pingles come sock

    Nov 26, 2017 at 2:25 PM

    Comment #13

    Ancient C

    Joselu – v Liverpool (broke the offside trap) from a shelvey pass

    Jane – it doesn’t work like that

    Silly sausage – I hope your right

    0
  • jane

    Nov 26, 2017 at 2:26 PM

    Comment #14

    let’s hope for Southampton v Everton draw.
    whatever the result one of them will go above Newcastle but draw is best i think.

    1
  • ronaldo aarons

    Nov 26, 2017 at 2:26 PM

    Comment #15

    Ancient
    He does but not many realise this because they already have a mindset that he doesn’t run or do anything lol, just gets sent off apparently every time he sets foot on the pitch. Looking at him objectively he’s actually quite a rounded striker just with a few rough edges that you get with most young strikers.

    Funnily enough, I remember him breaking the offside trap to score v west brom in his first season. Maybe he should start v west brom.

    5
  • Frank pingles come sock

    Nov 26, 2017 at 2:26 PM

    Comment #16

    Jib – that’s funny

    0
  • jane

    Nov 26, 2017 at 2:27 PM

    Comment #17

    Frank do you mean because the club could borrow money?

    0
  • ronaldo aarons

    Nov 26, 2017 at 2:27 PM

    Comment #18

    Frank
    Yes I remember that, forgot about it. Saying that though, it’s not like he shot and scored lol. Matip cleared the ball which hit Joselu and trickled in!

    0
  • Frank pingles come sock

    Nov 26, 2017 at 2:28 PM

    Comment #19

    Let’s hope this silence is because of the 1st media leak.

    Hopefully next time we here anything it’s all done

    0
  • Frank pingles come sock

    Nov 26, 2017 at 2:28 PM

    Comment #20

    Haha Ronaldo – yeah true !!

    0
  • catchy in norway

    Nov 26, 2017 at 2:29 PM

    Comment #21

    Jail

    thats the simple facts. and i get slated for backing a manager who had not been given a chance..when it was going wrong, i said many times it was time to go, but dont let facts get in the way of your warped history.

    If you care to go back in history, i stated i did not want pardew, but said i would give him the rest of that first season, which i did, he finished 12th,, it was the season we finished 5th i didnt like the football, individuals got us there not team play.

    4
  • carl

    Nov 26, 2017 at 2:29 PM

    Comment #22

    What a spineless number of so called fans who are behaving as if we may never win again. Nobody said it was going to be easy or plain sailing. For many on here, our defeat at Burnley was the start of a plunge into the abyss. Get a grip and focus on the next game.

    I certainly exclude Magscar from these harsh comments as he gave a realistic portrayal of the events at SJP. Watford are a top half side and could well have won by a few more.

    We were toothless and Ritchie gave little protection to Yedlin who simply couldn’t stop attacks down the left flank. Our weaknesses were targeted by a very good manager coach. We had obvious weaknesses in midfield. As many have said Murphy was a class apart from others- it’s a return to 4-2-3-1 because we were swamped by Watford’s numbers in midfield.

    The WBA game is a game we can win and I view it as I did prior to the Swansea game. The fixtures thereafter in December look daunting but with players returning all things are possible and an upturn in fortune is certainly possible. It’s the time of year for good cheer.
    Merino, Hayden and Shelvey can make a big difference and some positivity from the travelling toon army. That’s something you can rely on!

    1
  • jane

    Nov 26, 2017 at 2:31 PM

    Comment #23

    or wait till the summer and spend the TV money on transfers

    0
  • SPRINGY

    Nov 26, 2017 at 2:32 PM

    Comment #24

    Myt be a cynical look at the takeover but does anyone else think that the stavely group may take there time in putting pen to paper to buy the club, so that there is not as much pressure to invest heavily in the january transfer window??….just a thought like

    0
  • Frank pingles come sock

    Nov 26, 2017 at 2:32 PM

    Comment #25

    Jane – I mean that I think they just have one pot of say…..£300 million and once it’s spent it’s all gone

    I think they will have a valuation they don’t want to go over and will not pay over the odds just for the sake of it (I wish they would just say …right here’s £400 million see you later) but I think they want to get the best deal poissible the same as Ashley

    I am sure once they buy the club there will be funds to progress , why buy the club if not ??

    0
  • Frank pingles come sock

    Nov 26, 2017 at 2:33 PM

    Comment #26

    I meant (DONT) just have one pot

    Sorry

    0
  • Jib

    Nov 26, 2017 at 2:36 PM

    Comment #27

    By gum Sean Dyche has turned
    Burnley into a tough nut to crack

    0
  • carl

    Nov 26, 2017 at 2:46 PM

    Comment #28

    By gum hecky thump Dyche. Certainly an upgrade on the likes of Pulis and Allardyce. He’s built a good squad from small pickings and they can still play some football to boot.

    0
  • catchy in norway

    Nov 26, 2017 at 2:54 PM

    Comment #29

    things i dont understand.

    why is our passing accuracy only 74%, even Palace has 76% swansea 78% HUD 75.5% brighton 77,3%, i would say on paper there isnt much difference in players, and on paper Rafa is the best of the managers

    5th worst for goals in the 6yd box
    5th worst for goals in the 18yd box
    3rd best for goals from outside the box

    we seem to play on the wings, 35% and 36% yet our goal threat in the box from the above stats seems very weak.

    i was under the impression we played counter attack football, yet we have not scored one goal from a counter attack.

    its all very strrange to me, what is our game plan? do we have one?

    our no 10 position, IMO both Jonjo and Merino are both perfect for that role, yet that rolls royce know as Diame gets the nod, i just dont understand why

    6
  • U.S Magpie

    Nov 26, 2017 at 4:42 PM

    Comment #30

    Just a thought , take into account the negotiations could be taking a little longer as both parties want to see who Newcastle get in the FA Cup draw next week for the third round. If they get someone fairly easy they may think a run could happen, if they get say Man U or Man City someone like that they may feel third round and out. The more rounds you play in the more money you win, as the new owners they would get that money unless of course Cashley is waiting to put that into the agreement.

    0
  • Moonraker15

    Nov 26, 2017 at 6:53 PM

    Comment #31

    U.S mag
    With respect I would think the fa cup draw is the last thing on their minds. Staying in the Premier league is worth about £140 million a season, whereas a good cup run earns you a couple of million depending haw far you go!
    I’m sure once the buyout is complete then a cup run is a priority however as it will take a few seasons to get where Man City are at.

    0
  • U.S Magpie

    Nov 27, 2017 at 2:56 AM

    Comment #32

    As I said Moon, we are talking about Cashley here and not your average human being.

    0

You must log in to post a comment.