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SUPERTOON

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  1. Ashley's Newcastle future not black and white

     

    Matt Scott

    Tuesday July 31, 2007

    The Guardian

     

    Mike Ashley's investment at Newcastle United may be a short-lived affair, if rumours in the City are to be believed. The billionaire businessman declared in a rare interview published on Sunday that his involvement at Sports Direct, the company he founded and in February floated for £2.2bn, remained a "long-term" business interest but he is not believed to have the same intentions for Newcastle.

     

    There is a suggestion that, having snapped up the club so quickly that even the former chairman Freddy Shepherd - then a major shareholder - was taken by surprise, he is encountering more problems than he expected. One interested party reports that it did not like what it saw when it conducted due diligence over the club's books before a potential takeover.

     

    There was particular concern about the debt inside the company and it is felt that Ashley will be uncovering an unhealthier business than he anticipated. The manager, Sam Allardyce, has begun to grumble about the amount of money available for signings and Shepherd was shown the door last week.

     

    Analysts who have followed Ashley's career suggest his hands-on style means he is not one to have his investments run by proxies. But the chairman he appointed at Newcastle, Chris Mort, does not intend to relocate to the north-east, fuelling the rumours that Ashley may be persuaded to bail out if a suitable buyer emerges.

     

     

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