News in the Chronicle today that Mike Ashley has hired a top London law firm to look into the failed takeover of Newcastle United.
The law firm is Blackstone Chambers, and they are one of the top law firms who deal with sports related disputes.
The club had said almost a week ago that they would look are all options available to them since they don’t think the Premier League have been fair in their owners’ and directors’ test.
The test lasted a full four months before the Amanda Staveley led consortium withdrew their bid.
The consortium consists of Amanda’s PCP Capital Partners Group (10%), the Reuben Brothers (10%) and the Saudi Public Investment Fund (80%).
The deal is said to be for about £300M with lots of investment available in their first three years of ownership.
Mike Ashley – aggressive legal move made against Premier League
And MP for Newcastle Central Chi Onwurah presented her petition to Parliament last Thursday night, to further put pressure on the Premier League, which has not come out of this looking like an unbiased organization.
The petition demands accountability and transparency in the Premier League’s owners’ and directors’ test.
And when you think the Saudis are also willing to invest in the City of Newcastle upon Tyne as well as the local area, this seems a good deal for more than just the Newcastle club.
UK Prime Minister Boris Johnson is said to want the takeover to be approved.
The Blackstone Group have released the following statement on their website:
“Shaheed Fatima QC and Nick De Marco QC are acting for Newcastle United FC and Mike Ashley (instructed by Dentons) in a dispute with the Premier League about its rejection of a takeover bid made by PCP Capital Partners, the Reuben Brothers and the Public Investment Fund of Saudi Arabia (PIF) based on its Owners and Directors test.”
The dispute is about who the majority owners of Newcastle will be if the deal goes through.
The consortium says it will be the PIF and have given assurance from the highest levels of the Saudi government that that;s the case.
But the Premier League will not accept that, although they say the takeover deal is still ongoing.
The Premier League told the Amanda Staveley consortium they require even more information on this, for their owners and directors test.
This is an excellent move by the Newcastle owner Ashley, because there are definite signs the Premier League have not acted entirely above board or without prejudice in their handling of the Newcastle United takeover,
You wonder if they will want their dirty laundry (which we all know exists) aired in public.
We hope they don’t and that some way can be found to let the deal go through.
Howay The Bonnie Lads.
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11 comments so far
Tsunki
Sep 14, 2020 at 12:08 PM
Comment #1What if he got awarded a shedload of money? Lost sale? Restraint? £100m? 😀 that’s a striker and a mid, probably enough left over for a decent keeper and a kebab.
Tsunki
Sep 14, 2020 at 12:09 PM
Comment #2Yeah I know, reeling it back in as we speak…
Tsunki
Sep 14, 2020 at 12:11 PM
Comment #3“Mund Sep 14, 2020 at 12:09 PM
Comment #11
Tsunki
You leave my rainbow unicorn collection out of this that’s a low blow even for you fella.”
To be fair that had me laugh out loud with people around me wondering if I was throwing some sort of episode :D. Touché sir.
RobLeenio
Sep 14, 2020 at 12:12 PM
Comment #4Still feel a little queasy when I see Ashley’s fizzog plastered all over Ed’s wonderful blog.
🙁
Mund
Sep 14, 2020 at 12:16 PM
Comment #5ALL directors put forward – and organisations – have passed the owners and directors test.
But the league will not sign off as they believe the heads of the kingdom should be run through the tests, Mohammed bin Salman could well be included in that list. #nufc [Shields Gazette]
RobLeenio
Sep 14, 2020 at 12:17 PM
Comment #6“acting for Newcastle United FC and Mike Ashley”.
Very deliberate wording here. No mention of Newcastle United Holdings Ltd, which is the club’s legal entity. I think this is not a joint action but rather direct from Ashley himself.
I doubt the club will therefore benefit from any kind of compensation which ensued – instead it would go into Ashley’s very deep, dark and no-doubt stinky back pocket.
That’s not to say it wouldn’t benefit the club indirectly. As others have pointed out, proving culpability on the part of the Premier League would equally prove that the takeover was blocked erroneously and would therefore open it up to the consortium coming back in.
Lindisfarne
Sep 14, 2020 at 12:18 PM
Comment #7https://www.footballlaw.co.uk/articles/newcastle-united-fc-takeover-and-the-premier-leagues-owners-and-directors-test
If the KSA PIF is to acquire an 80% shareholding in the company that owns NUFC as a result of the proposed takeover and if those shares have voting rights, the KSA PIF would amount to a Director for the purposes of the ODT because of its greater than ‘30 per cent or more of the total voting rights exercisable at general meetings’.
…….pursuant to rule F.4 of the Rules, the KSA PIF would need to make a Declaration to FAPL that they are permitted to be a Director and are not ineligible due to any of the reasons set out in rule F.1 of the Rules.
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It would appear that there has been no decleration made on behalf of the Crown Prince in his role as CEO of the investment fund and therefore the O&D test did not move forward. The seperation of the state and PIF is not the issue and, from the outside, I do not trust Ashley to make a legitimate arguement as he is the most self centred person to have ever existed.
DaveD1000
Sep 14, 2020 at 12:20 PM
Comment #8I’m never going to be a fan of Ashley( I will raise a glass and give him a cheery wave and smile when he goes) where could we have been if he had done all this from the start?
Jamesthefirst
Sep 14, 2020 at 12:57 PM
Comment #9Legal action is not compensation based.
It is a block of trade due to an illegal passé by the PL
The matter will go before an independent tribunal who will look at the evidence from both sides and pass the takeover.
Skydog59
Sep 14, 2020 at 2:25 PM
Comment #10There is no takeover. The PIF withdrew. They do not appear to be a party to the legal action. It appears to be an attempt by Mr Ashley to obtain compensation, presumably for the difference between what he had agreed to sell for and what the club is worth now. That will be his money not the club’s. it may open the way for a new takeover initiative but that is another matter.
Skydog59
Sep 14, 2020 at 2:25 PM
Comment #11There is no takeover. The PIF withdrew. They do not appear to be a party to the legal action. It appears to be an attempt by Mr Ashley to obtain compensation, presumably for the difference between what he had agreed to sell for and what the club is worth now. That will be his money not the club’s. it may open the way for a new initiative but that is another matter.