When the winners of five of the seven UK Premier League TV rights packages were announced yesterday the question for Newcastle fans was what impact (if any) would this have on the possible takeover.
The five deals added up to around £4.464B and are less than the current deal l is £5.14B, with the price per game being around £9.3M, down from the current £10.2M.
The overseas TV rights could be a lot more than the current deal of £3B so that Overseas TV rights plus the United Kingdom could possibly turn out to be more than the current £8.14B.
If it is higher overall, then that’s when Mike Ashley could raise the price of Newcastle United based on the additional future revenues – always assuming we can stay in the Premier League.
Football finance expert Kieran Maguire of Liverpool University has said the TV rights deal could have consequences in Mike Ashley’ attempts to sell Newcastle.
Mike Ashley – will he raise the price of Newcastle?
This a comment from Kieran Maguire in the Star today – as republished in the Chronicle:
“The elephant in the room is that the Premier League is the most popular sporting product globally.”
“The Premier League still think there is a lot of growth potential in the overseas TV Rights deals.”
“If Mike Ashley thinks that those prices are going to be very high, he’s going to factor that into the valuation of the club.”
“Clearly PCP want to take a more conservative view of that, so that is why there is a gap in those prices.”
“Once we know the value of those deals, then you have got more certainty.”
“And I think then you could see parties coming together and saying ‘well now we know what the TV money is going to be going through to 2022.”
“They will have a more secure sense of forecasting data, from which we can come up with an agreed price’.
“Ashley is going to say one price, PCP are going to say another because it is in their best interests to do so.”
Basically, one of the unknowns that impact the Newcastle deal will be known fairly soon – the TV Rights deal for the next three years starting in the summer of 2019.
But there’s still a second unknown; whether Newcastle United will be a Premier League club next season – and hopefully, we can do that sooner rather than later – by keep winning our games.
The third unknown is the HMRC investigation over alleged extensive tax evasion of player transfers by Newcastle, which will not be decided for quite some time.
Once Newcastle are safe in the Premer league that’s when we should see more offers if any are to be made.
But the majority of fans don’t think Mike Ashley will sell the club this year.