Mike Ashley will now settle for a price of £280-£300m for Newcastle United which would still leave him with a profit of £30-£50m from his 15 months in charge. Prospective buyers would get a debt-free club and one with prime commercial property assets in the vicinity of the club’s St.James’s Park stadium worth in the tens of millions of pounds. Ashley is now taking a more sober view of the situation after his initial sales pitch launched in the Middle East a day after putting the club up for sale, during which he reportedly hawked the club for around £480m.
Mike Ashley will now settle for a price of £280-£300m for Newcastle United which would still leave him with a profit of £30-£50m from his 15 months in charge. Prospective buyers would get a debt-free club and one with prime commercial property assets in the vicinity of the club’s St.James’s Park stadium worth in the tens of millions of pounds. Ashley is now taking a more sober view of the situation after his initial sales pitch launched in the Middle East a day after putting the club up for sale, during which he reportedly hawked the club for around £480m. One person close to the sale told the Financial Times, ‘The buyer will be a long-term owner of this asset who understands that, in football, profits may not come each and every year.’ What was not mentioned is that any buyer will have to cope with the massive – and some would say unrealistic – expectations of Newcastle fans. The Nigerian consortium interested in the club has reportedly already submitted a bid, although they would not have had an opportunity to examine the books, which requires signing a confidentiality agreement.
UPDATE: Springboks Front Runners At Magpies – 2/10/08
A South African consortium is thought to be in the lead among bidders for Newcastle United. As many as eight consortiums have been in talks with owners Mike Ashley. However, the five-strong South African group are thought to be prepared to make a bid in the region of the £300m that Ashley is asking for and could seal a deal within a matter of weeks. They are thought to be keen to bring back Kevin Keegan as manager and might offer him a 5 per cent stake to persuade him to come back for a third spell at the helm.