NUFC admit £100m is on table for club - but overdraft is stumbling block
Sep 19 2009 by James Marley, The Journal
NEWCASTLE United last night confirmed the £100m asking price for the club had been met – but there are fresh indications that current owner Mike Ashley is planning to stay.
The club issued a statement to The Journal which said: “The £100m asking price has been matched, however, we are still in negotiations and all parties involved are at sale and purchase stage.”
The chances of a speedy resolution to the takeover saga are thought to remain slim with Ashley closing in on a deal to secure a new, and much-reduced, overdraft facility with bankers following months of talks.
Sources say that in recent days there has been “renewed urgency” in the club’s talks over a new lending deal which will see the club’s borrowing capacity reduced from £39m to around £25m.
This would provide Newcastle with security for this season, and Ashley is increasingly pinning his hopes that the team’s current on-the-field success will improve its long-term value, and make it more attractive to purchasers a few months down the line.
The Journal understands that local businessman Barry Moat is behind the £100m offer mentioned in last night’s statement. However, it is understood the overdraft facility he is being offered by Barclays is less than that on offer to Ashley, which could prove a major stumbling block.
Sources have also confirmed there are two overseas parties still in talks with the club over a potential offer, with both having progressed through the due diligence phase.
Richard Slack, principal lecturer in accounting and finance at Northumbria’s Newcastle Business School, said: “Ashley’s attempts to sell the club appear to be failing in the short term and it looks like he is adopting a new strategy.
“He has slashed the wage bill by off-loading players and it looks like he is only prepared to sanction loan signings so the club won’t be encumbered with any new long-term wage commitments.
“If the team continues to perform well and looks like getting promoted then the club will become increasingly attractive.
“Potential purchasers will be attracted by the huge income potential a return to the Premiership will mean, and they will also inherit a club with a low wage bill.”
