Takeover talks still going on

Jul 29 2009 by Luke Edwards, The Journal

MIKE Ashley has no intention of putting Newcastle United into administration even though it is feared the unpopular owner will fail to sell the club for his £100m asking price.

Given the size of the club’s debt – and the fact expenditure is alarmingly disproportionate to income following relegation to the Championship – it had been suggested the only option available to Ashley if he has not sold it before the start of the season, would be to call in the administrators.

That would automatically lead to a 10-point deduction under FA rules and, while the club’s debt would be under control, it would mean every player was effectively up for sale.

But that has been strenuously denied by sources at St James’s Park, who insist administration has “never been considered as an option” and that takeover talks are continuing in private.

While there has been no significant breakthrough in those talks this week, it is understood Ashley – who would lose even more money if the club was put in the hands of the administrators – remains hopeful he will sell the club this summer. That may suggest he is willing to lower the asking price given that nobody has offered the £100m he wants.

In the meantime, though, it is thought Ashley will have to put in some of his own money to ensure the club’s overdraft is maintained by Barclays Bank or lift the transfer embargo which is preventing the sale of any players until a takeover is completed.

A source close to the deal said: “There’s absolutely no chance of Mike putting the club into administration, that has never been considered as an option and we don’t know where this (suggestion) has come from.

“Seymour Pierce are continuing to work on the sale and we are still talking to people. Everything is on-going and we certainly haven’t given up on finding a suitable buyer.”