Club sale may hit transfers

Oct 9 2008 by Dan Warburton, The Journal

THE sale of Newcastle United could drag on into next year, experts warned last night. It was also suggested sports tycoon Mike Ashley will "have to take what he is offered" as his attempt to sell the club is threatened by the credit crunch.

The St James’s Park owner has extended his deadline for bids to October 17, with eight parties interested in a buyout valued at £250m to £300m.

But Keith Harris, the investment banker hired by the billionaire tycoon to sell the club, warned that the global economic crisis could stall any sale. Mr Harris said: “You can’t avoid being affected by the financial markets one way or another.”

And a leading academic also said the global economic crisis might hinder Mr Harris’s efforts to find a buyer, suggesting it could stretch past Christmas.

Professor Tom Cannon, an expert in football finance at Buckingham Business School, said: “It’s more than realistic to expect him to have problems in the current climate – in fact it’s inevitable.

“He has extended the deadline to October 17, but I would be surprised if anything could be achieved in that time.

“Given that the club has been up for sale for several weeks, I would be surprised if the situation would change in the next 10 days. That’s optimistic. I would be surprised if this situation was resolved by Christmas, making problems for Ashley when the transfer window opens. The truth is that it’s a buyer’s market, and in this market you have to take what you are offered.”

A proposed takeover by a South African consortium appears to be faltering. The group’s spokesman Jonathan Cleland said: “The challenge now is coming up with the money after some of our preferred backers indicated they were no longer interested.”

A fans’ group trying to buy the club says it is making progress. Fronted by supporter Peter Lee, members are attempting to launch a fan buyout alongside investments from outside organisations.

Mr Lee said: “We’re progressing very well with our strategic options to buy-in or buyout the club.

“A number of methods of funding aside from the fan investor have been examined and we’re assessing which best fits our needs and our objectives.”

:: Football fanatics can air their views online tomorrow in The Journal’s first ever live webchat, with chief sports writer Luke Edwards. NUFC webchat – 12.30pm, at www.journallive.co.uk