There is a new report out today in the Financial Times on the state of the Newcastle takeover, and it seems to level set where are we are in PCP Capital Partners led by financier Amanda Staveley trying to acquire Newcastle.
What they report is there was not a second bid made of £300M made by Ms. Staveley but that the previous offer of £250M still stands and there is no relegation clause in that offer.
That’s different from what Sky Sports had reported over the last several days.
Keith Downie had said an improved £300M had been made and only yesterday he had tweeted the relegation clause in the contract is where the disagreement is.
Instead, the Financial Times is reporting that Amanda Staveley wants to make the offer at £250M and if Newcastle survive relegation, they will give Mike Ashley a bonus payment – maybe that’s £50M?
Amanda Staveley – wants to pay Ashley a bonus if Newcastle avoid relegation
They also believe there is a better chance of being relegated than not for Newcastle with PCP Capital Partners saying there is 65% chance of relegation.
Here is an extract from the report:
“The proposed takeover of Newcastle United football club has reached a critical stage, with disagreements about the value of the club if it is relegated from the Premier League preventing a quick deal between Mike Ashley, the current owner, and Amanda Staveley, the prospective buyer.”
“The sides are still in talks, but questions persist over how to structure a deal should Newcastle, which has dropped to near the bottom of the league, falls out of English football’s top tier, a failure that would decimate the value of the north-eastern club.”
Ms. Staveley wants to pay an initial low price and increase that should Newcastle stay in the Premier League this season:
“Ms. Staveley is resisting paying a high price up front and will not be swayed by promises of a rebate should Newcastle be relegated, according to people familiar with the talks.”
“She is is instead pushing for a structure where she would pay a lower price for the club and then top it up in May if Newcastle retains its top-flight status.”
It’s difficult to know what is true and what isn’t true with these differing reports.
However, the Financial Times does end by saying a deal could still be reached quickly:
“However, negotiations remain fluid and could move more quickly if a price and deal structure can be agreed.”
That’s just to keep us all on our toes.
But Newcastle must get back on an even keel in the Premier League – we must stay in the Premier League this season – every successive defeat is not good at all.
Rafa and the players with the help of the fans must steady the ship as soon as possible.
And to think I thought this would be a good season with Newcastle in the middle of the table with no relegation worries at all.
I was wrong again!