53-year-old Christian Purslow is a British businessman, who was a co-founder of private equity company Mid Ocean Partners and is the former Managing Director of Liverpool Football Club.
He is now Director and Head of Global Commercial activities at Chelsea Football Club.
He is very knowledgeable about mergers and acquisitions (M&A) and in the general business associated with running a football club.
Christian has been interviewed by Sky Sports Monthly, and he has talked about the potential Amanda Staveley takeover of Newcastle.
Purslow believes Newcastle’s poor form over the last six games ( we have one point from those games) is complicating the potential takeover.
In short, a buyer doesn’t want to buy Newcastle now if we are going to be back in the Championship next season.
It’s a very interesting interview.
Christian Purslow – makes some very good points on the takeover
Here’s what he had to say about the potential Amanda Staveley acquisition of Newcastle:
“The Business’ slot that the difference in valuation between Amanda Staveley and Mike Ashley is unlikely to be resolved with Newcastle at risk of relegation.”
“Staveley’s view on value and Mike Ashley’s are some way apart but critically she is also starting to be concerned about the relegation risk.”
“Offering an owner of a Premier League team a deal that says, ‘I will give you £250M-£300M, but if in August I find myself in the Championship I’d like a refund of a £100M’ then.”
“Mike Ashley is never going to accept a deal like that.”
“The more likely sequence of events, I am not saying it is impossible, is that buyers wait to see where Newcastle settle and once their Premier League fate is secure then a deal gets done by the end of the season.”
“But the idea that a deal is going to happen in the next few weeks, let alone at levels that are way below what Mike Ashley’s asking price was, is fanciful. I think by the end of the season is when the club gets sold.”
“Newcastle’s run of six defeats in seven games is bringing matters to a head. As Ashley sticks to his valuation, Staveley will hardly be minded to up her group’s offer while there is a chance Newcastle could be dragged into the relegation fight.”
“The significance of that is that when you are buying or selling a football club, the valuation is directly linked to the revenue performance of that club.”
“A club in the Championship is worth substantially less, a fraction of a club in the Premier League.”
“Mike Ashley was rushing to capitalize on Newcastle’s very good start to the season in the summer and autumn. We are now moving into these long winter days and Newcastle have had a very bad run of form.”
“For any potential acquirer of Newcastle, today, to commit to a valuation would be a very bold move because if the club was relegated that value would look crazy.”
There now seems little hope of a takeover being completed by the end of the year – or even by the end of January.
That’s unless Newcastle go on say a six-game winning streak when it looks like there’s no way we will be relegated.
Now Rafa Benitez will likely need to negotiate with Ashley as to what funds he gets in January.
Surely Ashley knows he needs to help Newcastle survive because then he can get near the price he wants for the club; if we are relegated he should forget about selling because he will lose some big money.
But in the past, Ashley has not always done the logical thing.