After news that Amanda Staveley was ‘close’ to sealing a £300m takeover of NUFC earlier this week, Sky Sports have provided a slightly worrying update on proceedings last night, stating that one of the sticking points remains the relegation compensation clause Staveley has included in her new offer – suggesting a deal may not be as close as it was reported to be on Wednesday.
This was something that was understood to be an issue in Staveley’s initial offer, however it appears as though a relegation clause still exists in her new and improved offer.
This is understandable given our recent run of form, leaving us unbearably close to the relegation zone, however it has been suggested previously that Ashley would be unwilling to allow for such compensation.
Here’s what Sky’s North-East correspondent Keith Downie had to say on the matter last night, including a snippet from the story that followed on Sky Sports’ website last night.
Understand the relegation compensation clause remains as part of Amanda Staveley’s offer, and is one of the sticking points in the potential takeover #NUFC
“Sources close to the potential Newcastle takeover deal have told Sky Sports News that one of the sticking points is the relegation compensation clause that was part of the opening offer from Amanda Staveley’s PCP Capital Partners.
“It is our understanding the relegation clause has not been withdrawn from the offer despite further talks, and remains unfavourable to current owner Mike Ashley.
“If said clause is activated (upon relegation), Ashley, who goes on a family holiday on Friday, would have to pay a substantial sum back to the new owners.
“Sky Sports News understands an increased offer of around £300m has been made by Staveley’s PCP Capital Partners, who have been in talks with Ashley.
“Ashley and Staveley met face-to-face for the first time last week in a London curry house.
“Discussions over an improved bid and Ashley funding the January transfer window while the takeover is being ratified by the Premier League were on the agenda.”
In fairness, I’d not want to spend a few thousand on a car if I knew it could break down and half in value, so you can see why she’d be reluctant to spend £300m on a club that currently looks like it *COULD* go down this season on recent form.
This is getting painful now. Lets’ hope (and pray) a compromise can be found!
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About Olly Hawkins
Olly has been a Junior Magpie from birth. As a season ticket holder and avid Newcastle United fan - he eats, sleeps and breathes all things NUFC.