NUFC sale talks set to step up over coming days

Oct 3 2009 by Peter McCusker, The Journal

WITH some of the uncertainty over the state of Newcastle United’s balance sheet removed, talks over the future of the club are expected to step up a pace in the coming days.

The £2m payment to former manager Kevin Keegan will comfortably be accommodated from within the club’s current bank borrowing facilities.

There had been some concern that if the payment had been at the top end of what Keegan had claimed then the club would not have had the cash to pay it and it would have to come out of owner Mike Ashley’s pocket.

But with that bridge crossed Ashley will be considering what to do next.

Two weeks ago the club said it had received an offer of £100m for the club, which is believed to have come from Newcastle businessman Barry Moat.

While receipt of this offer was communicated to the outside world through The Journal it is understood that some parties to the talks were unaware of its existence and had been “surprised” by the announcement.

There are also believed to be questions marks over the ability of Moat, at the moment, to be able to garner the funds from members of his consortium, with at least one of his backers said to be having cold feet.

There are also talks taking place between the club and two overseas consortia, The Journal understands.

However with bankers Barclays close to agreeing a new overdraft facility with the club – down from £39m to £25m – there are suggestions that Ashley is thinking about hanging on to United in the hope he will be able to sell if for closer to £150m if Newcastle get promoted.

With Ashley having raised about £20m from player sales over the summer and having slashed the club’s wage bill from £60m to around £30m the balance sheet is looking healthier.

And with the Magpies three points clear in the Championship Ashley will be hoping their strong form continues into the spring when, with promotion almost guaranteed, he would get a greater return on his investment which so far totals around £300m.