Summer activity is about to take shape at Newcastle, with the hope that signings will be on the horizon after the announcement of chief scout Graham Carr’s departure earlier this week. Talk of a takeover still looms over the club though, and with a world class manager finally in place, any uncertainty would be coming at an unwelcome time. Media reports, if believed, state that Newcastle could very well see investment rather than a full takeover of the club from current owner Mike Ashley. How would this work in reality?
A partial investment
One option would be for a consortium to invest into Newcastle and purchase something like a 10-20% stake in the club. Ashley apparently values the club at £400m, which is one the factors that is holding up a full sale. Taking these numbers as ball park figures, this would equate to £40-80m coming into the club for a smaller stake in ownership.
This is similar to the agreement Manchester city with Chinese consortium, CMC, last year. They purchased a 13% stake for an eye watering £265m. Of course City is a more valuable financial proposition for investors. than NUFC. An interesting angle is that Manchester City is already owned by billionaires who have no desire to sell the club currently. So why sell a stake? Quite simply, for mutual financial benefit. The owners felt the Chinese market had a lot of untapped potential for them, as despite overtaking Manchester United on the pitch, commercially, they remain behind. A partnership can give you contacts and new sponsorship deals in a new region.
Something similar may be being discussed with Newcastle. Chinese investors have been linked with Newcastle and it appears an unlikely coincidence we have also just announced our commercial sponsorship partnership with Chinese firm FUN88. Ashley may well be discussing a similar deal to that of Manchester City behind the scenes. This would mean investment in the club for new players potentially, whilst ensuring little day to day change. Purchasing this smaller percentage from Ashley would mean all major decisions, like hiring managers and overall budgets, would still firmly rest with him.
Buying a major stake
Another investment option would be for a group to purchase a far larger stake, something that would certainly have greater ramifications on how the club is run day to day. A comparable example to this would be the situation at Everton, with billionaire Farhad Moshiri buying a 49.9% stake in the club in early 2016. It was notably just under the 51% to be the majority owner but a high enough stake that he has assumed major responsibilities away from Bill Kenwright.
By all accounts, this has provided Everton with real financial muscle. Lukaku was signed for £28m with a further spending due on the cards this summer.Of course, not all owners will invest so much in new players as Newcastle fans of course know. However, it does represent an example that if Ashley was to sell a stake of this level it would mean a change in the running of the club and significant power sitting with any potential investors. The higher the percentage bought from Ashley, the more vital the intentions of investors is.
What do investors want in return?
It is important to consider that the goal of investments is to make a return or profit on your initial outlay. Owners can buy clubs with the idea of improving the club and not necessarily making any money from it (Man City and Chelsea are clear examples.) So if someone wanted to buy Newcastle and turn them into a superpower with the clubs interests solely at heart, they would probably attempt to buy the club outright.
Investors will likely see the new TV deal as a chance to grow their own business by having an association with Newcastle United. Of course it is in their interests the club does well, as success on the pitch leads to higher prize money and a better brand. But depending on the deal struck with Ashley, investors taking a smaller stake may want a cut of profits, a percentage of sales in a new market, such as China, or reassurances when they will get their investment back – with interest, at a set date.
Do timescales differ from a full takeover?
A full takeover certainly takes longer. This is due to having to pass fit and proper owner tests from the Premier league and also a more detailed process of due diligence over the clubs books. Investment would theoretically be sorted at a quicker rate and more importantly, should not impact on player trading this summer. Unless it raises capital for new players, which would be great news.
Until more details emerge, you do get the feeling the talk of a takeover or investment is a case or de ja vu. Ashley bought Newcastle over 10 years ago and he seems now, more than ever, to be learning from his mistakes. It would take a deal to line his pockets significantly, either to sell the club or just a chunk of it, for things to change.
defo mate, need the next level up from the current lot or else what’s the point in spending. Like you I haven’t really been bowled over by who we been linked with. I do like Abraham but got very put of by his demands of wanting to start all games 🙄 agents get in the ears of these young lads and they end up believing the hype around them. The prices being quoted for, lets face it, bang average players is sickening. Rather give Arma a big chance in first team tbh. £20m for Cairney, do me a favour . The whole thing will implode at this rate, mark or mock my words as Troy would say. 😉
kimtoon(Quote)
Kim, all of the selling clubs know we and most other PL clubs are flush with cash. I can’t criticize the club for not wanting to get ripped off. I won’t pay over the odds for something particularly if I feel the seller is having a lend of me. So I see why the club sometimes makes a stance against paying too much.
Aussie(Quote)
Aussie – sadly I think a number of our signings will be what we see as average players. I think mid-table down over is average and we need to stabilise ourselves as a PL side before the real quality players would seriously consider us.
These top players want to compete in Europe & cup competition – and as much as we don’t like it, the last 3-4 seasons we have battled relegation & played in the championship. We bought players to get us up last season & this season we need a squad to keep us up. The following seasons will hopefully see those quality players be brought in.
Now would be great, but I don’t expect it.
Sharpy17(Quote)
Sharpy – top players ??
I am just hoping for above average ????
Aussie(Quote)
Aussie – I just hope for players ?
Sharpy17(Quote)
True mate ?
Aussie(Quote)
Aussie nevertheless I still want Pardew to get a job. Anywhere else but Newcastle and I’d be happy. If he comes back Troy will be in his element with Eric.
Stem(Quote)
If Pards came back, that would be me done, can’t abide the man.
kimtoon(Quote)
Kim I wouldn’t put it past Pardew to have a sly interview with Ashley behind Rafa’s back. They did it to Hughton.
Stem(Quote)
Funrafa’s is spot on survival is all Mike Ashley want’s and we are doomed as long as his here.
Stem(Quote)
Thanks Stem mate.
“Newcastle manager Rafael Benitez has demanded a meeting with managing director Lee Charnley in the next 24 hours over the club’s transfer dealings but will not quit the club, according to the Northern Echo.
…
As a result, it is claimed that Benitez and Charnley will meet shortly to discuss how the club is progressing with transfers, and why previous deals have fallen through.”
https://thisisfutbol.com/2017/06/blogs/benitez-seeks-talks-with-charnley-over-transfer-disappointment/
That is why I like Rafa. He is a fighter.
funrafa(Quote)
Baldrick got a knighthood. I like Tony Robinson but it seems to me they are running out of people to knight. Better than bankers.
How about Lord Harrold of Redknapp.
Eric Sykes(Quote)
I don’t think pards would return. He was hated in the end and his body language said he’d had enough. Wouldn’t be good for his health. Or mine, as I think my head would explode.
Eric Sykes(Quote)
If they are going to give out knighthoods with cornflakes they could do worse than Lineker, Hanson and David Pleat.
Eric Sykes(Quote)
Eric 😆
Stem(Quote)
Hey Aussie – what’s this ‘not georgio’ business? If it’s OK for Kim and Sharpy 😀
georgio(Quote)
I love all this drama from people taking rag reports without sources as fact. It is June ffs!
shamrock(Quote)
And it’s Ashley ffs 😉 so we should never be 😮 at any possibilities
kimtoon(Quote)
Shamrock: there haven’t really been many deals but the papers are quoting crazy prices and not just for us.
20 million seems to be the new 5 million.
Now Harry Kane is priced above 100 mil? I can’t tell if they are serious or if it is clickbait?
Eric Sykes(Quote)
Must admit I would be happier if LeJune had been signed and either Fernando or Samaras. And what happened to that Porto striker. Good new spine for the team there. Throw in Traore and it would be a good summer.
Premandup(Quote)
Storey in the press that David Beckham is very angry and upset because he has not been given a knighthood,true
Icedog(Quote)
Samaras looks a tidy player Prem, he’s the one that took my eye of all the ones we been linked with.
kimtoon(Quote)
Ice , he needs to be content with everything else he has in life. Bowie turned his down and when asked why he said “I seriously don’t know what it’s for ” Quite right too, when you look at some of the twats who have one .
kimtoon(Quote)
this site is lagging again, taking an age to type up a post 🙁
kimtoon(Quote)
Bloody to right mate
Icedog(Quote)
I suppose it might open a few doors, or maybe get you a decent table reservation 🙄
kimtoon(Quote)
KIM I really cannot the bloke he’s thick as two short planks as well if he hadn’t got involved with footy he would be on the dole or road sweeping,as for his Mrs I dis-like her even more one massive poser,I would never strike a female but would give a months money to see someone smack her hard right in the kisser,no wonder Tom Crusie would have nothing to do with them
Icedog(Quote)
http://www.chroniclelive.co.uk/sport/football/transfer-news/five-managers-havent-persuaded-mike-13240674
good read
kimtoon(Quote)
It’s no time for drama and it’s certainly not a crisis but Rafa is certainly frustrated at the lack of movement. He’s had deals lined up but for some reason they’re not being done… Why is that? This French guy has been ready for two weeks now but we’re haggling over a bit of cash even though the guy has a buy out clause of £8.7m. Doesn’t make much sense to me but then again, this is Mike Ashley’s NUFC.
Stuart79(Quote)
Stuart, nothing in this world makes sense if you believe what you read in newspapers and don’t apply some commonsense to their stories. This is true for anything, not just football.
How do you know that Rafa has had deals ready to go? I missed the quote by Rafa where he said this – maybe you could reproduce it for me.
And if he has had deals ready, one would assume that he had a personal say in the matter. That being the case, he must have had personal dealings with the player’s agent. Do you not think that agents of the players concerned would keep him appraised of what is going on with their client, or do you think football agents are like secret agents and business is all done by cloak and dagger?
Newspapers like nothing more than a drama. And where there is none, they fake it. If there is no fire, they produce a smoke machine to simulate one. Their favourite customers are those who say “you can’t believe what you read in newspapers” yet constantly take as truth what they read in the newspapers.
Brisvegas(Quote)
Bris – you’re dead right, but to be fair I think you’ve directed your comment to the wrong person.
Stu is referring to this CB that has been in the pipeline for a while now. Eibar has confirm the deal is as good as done – that’s quotes from a member of the board, not just journos.
Now had you directed it to say FunRafa, I reckon you would have been **** on ?
Sharpy17(Quote)
Hi all, been silent for a bit but mainly due to travel plus not a lot to say these days… I see a zillion players being linked but frankly bored with it until we actually sign someone.. I’m in China at the moment so not easy to access the site too…
I’m still hoping we can get someone like Batshuyai in on loan… not given up on the hope just yet… all we hear is paper talk which I don’t put much faith in tbh…
A bit pissed off also, in that I’ve lost Bein sports… it’s been blocked in Dubai so I’m hoping to get it back by mid Aug. Or no prem footy…
Dubai Toon(Quote)
One thing is for sure. Rafa is different fruit to our previous managers except possibly KK and can walk into any other job and if Jabba wants to mess him around he’ll soon be without a manager and a large chunk of the clubs fanbase I’d imagine. He is a man of integrity who will not mislead the fans, if he walks and it’s a big if, I’m sure he’ll let us know just like KK did.
I think if we get to mid July with no additions to Atsu then it will be pretty obvious something’s not right.
kimtoon(Quote)
Dubai, that’s tough about Bein like, how come it’s blocked there now?
kimtoon(Quote)
Bein is based in Qatar
Dubai Toon(Quote)
Ah right
kimtoon(Quote)
Bris – I was on here a couple of weeks ago and I mentioned that Rafa was frustrated and had deals lined up. It’s not a coincidence that it’s now in the press. He is frustrated – whether you believe it or not, that’s up to you. No talk of quitting or anything like that, but frustration is there.
Stuart79(Quote)
Kim the press know what a good stick Raffa is to beat up poor Newcastle Supporters with…
They know how keen we are that he stays and does well. They (press) can pull that lever when ever they want and know they will get a big reaction (more click bait for their advertising coffers).
Imagine if they did a story on Raffa walking because of the free sports direct advertising! 😆 😆 😆 😆 End of the world stuff right there! 😆 😆 😆
Aussie(Quote)
Kim – but this is the other thing, who says it’s Ashley messing him round.
Rafa is probably only still there because of the actions Ashley has taken. We say Rafa is a smart bloke and won’t be messed about – he has been at some of the biggest clubs in the world. He’d know fairly early on if Ashley was dicking him about – yet he’s still there, which suggests Ashley isn’t dicking him about to me.
Rafa wanted control of transfers & Ashley agreed. The one bloke who has had final say on transfer for the last 7-8 years has just walked away from the club – that suggests Ashley isn’t dicking him about.
I know Ashley has been a ***** in the past, and without doubt has it in him to be again. But is it so hard to consider alternatives to why we are struggling in transfer windows – 1) players fees are too high. 2) agents fees are too high. 3) players wage demands are too high. 4) players simply don’t want to come to us and favour another clubs interest more.
Sharpy17(Quote)
The funny thing about all of this (and I’m with Shamrock here) is there’s been nobody at all at SJP or Benton for 6 weeks now. There’s been no press briefings, neither Charnley or Rafa have talked to anyone. Zilch.
Yet we’ve had 4 journos at the Chronicle as well as the broadsheets earning a living writing toon related stories every single day. Who did Rafa air his frustrations to? It’s all bollocks.
The only real bit of news was when Ashley dropped his legal man into SJP and hey ho the HMRC investigation halted just 3 days later and all computers, phones etc returned. Didn’t stop the journos writing about Rafa being undermined and Ashley halting transfers or claiming Charnley had a new boss.
This is not for Aussie by the way.
georgio(Quote)
Georgio – spot on. I love Ziltch as well ?
Sharpy17(Quote)
It was the sunday times who originally had the Rafa frustrated story and the others followed suit I believe. there is a saying, no smoke without fire.
Let’s hope it’s all bollocks anyway and everything in the garden is rosy, but it’s worth remembering that Rafa was let down last jan window and actually said so in a press conference if I remember.
kimtoon(Quote)
Kim – I don’t think anyone doubts the frustration – it’s that Ashley is the source (on this occasion) and that Rafa is considering leaving that people/I am not having.
Sharpy17(Quote)
http://c.newsnow.co.uk/A/891480859?-11058:809:3
Wow, the gazette has taken a whole different angle – I wonder how many jump on this one ?
Sharpy17(Quote)
Sharpy, I posted an article yesterday which says Toon have to break the £15m barrier to get a decent player/s in because the PL and fees are moving at such a pace now. Thing is, it is a barrier that apparently Ashley is reluctant to break. I really hope this isn’t true because if it is then we are seriously hamstrung from the get go. It’s probably why he wants investors to help share the costs. Palace wanted £15m for Andros in January ( £2m loan and £13m fee ) we didn’t get him, That fee isn’t out the way for a decent winger and they likely still owed us some cash for him so I don’t get why that deal didn’t get done tbh, unless Fat Sam was being a ****.
kimtoon(Quote)
Lets hope that’s a truer reflection of the situation mate, but we shouldn’t believe everything we read remember 😉 😆
kimtoon(Quote)
D’oh! Of course, of course. Sorry, I’d forgotten about your psychic super powers.
Brisvegas(Quote)
Nah
Funrafa(Quote)
Sharpy, you gotta admit that’s a good riposte there like. 🙂
kimtoon(Quote)
hahahah
Funrafa(Quote)
? Good man, like it ??
Sharpy17(Quote)
I think Michael Owen is our record transfer still at 17 million. We will have to break that if we are to compete in the PL. I read something that might explain why we have been a bit ****. These are the number of 20 million plus transfers made by a few of the top teams:
Man City – 25
Chelsea – 20
Man U – 17
Liverpool – 13
We have to start showing a bit more ambition and not just being a billboard for Sports Direct.
Eric Sykes(Quote)
I hope we have scouts at the U21s as we should take a look at the Germans. Abrahams hasn’t done much but did score.
Eric Sykes(Quote)
Poor pen from him though Eric . Germany and pens eh, ah well, maybe next time.
kimtoon(Quote)
Eric – thing is mate, he’s either just signed or will sign on his return a new contract with Chelsea. He’s 19 and will be on 50k p/w – and Chelsea expecting the loaning club to cover most if not all of that.
I’m pleased we aren’t loaning him, coz I’d far rather give Armstrong or Roberts a go and develop our own and save on Abrahams wages.
Sharpy17(Quote)
Sharpy – it’s interesting you quote Abraham being on £50k a week. Right there is one of the big things all wrong about English football. How hungry are kids going to be when they’re millionaires at 19? He’s not the only one and it’s way out of hand. In Spain, as an example, the kids even at Barca and Real Madrid are on peanuts and that’s what keeps them pushing and pushing themselves to actually make it. It’s similar in Italy and probably all over the world, certainly S America. If it hasn’t already, money will certainly ruin our game in the future.
georgio(Quote)
Afternoon folks! New thread alert..
https://www.nufcblog.co.uk/2017/06/28/get-with-the-times-why-nufcs-transfer-policy-needs-updating/
Simon’s piece on why Ashley & co must change their transfer policy to survive this summer
Olly Hawkins(Quote)