Will Ashley find a buyer for NUFC?

[LoveItIfWeBeatU]

With the state of world and football finances as they are, who do you realistically imagine will buy Newcastle United off Mike Ashley?

 

"Get out of our club" is all well and good but who or what is the realistic alternative?

 

David Sullivan and David Gold who own a controlling 50% stake of West Ham have said buying the club didn't make sense from a business perspective. They bought it for sentimental reasons. They are looking for partner investors to buy the other 50%. West Ham have £110m debts.

 

There are also the 'shadowy' people who own the likes of Portsmouth and Notts County. Portsmouth currently look doomed. How can someone with no money buy a club?

 

A Man U / Liverpool type owner bankrolled on massive debt would be a disaster. As I understand it, Barry Moat was trying to buy Newcastle with US backing. He certainly didn't have a personal fortune anywhere near enough to buy the club. The US money would probably have been borrowed money which in turn will have been dumped as debt on the club.

 

A Roman Abramovich (Chelsea) / Sheikh Mansour bin Zayed Al Nahyan (Man City) type owner seems extremely unlikely.

 

Personally I can't see any one buying the club off Ashley unless he sold it at a huge knock down price (which he won't do). The best we can probably hope for is a fan / local business buy in (rather than total buy out). Given some of the alternatives, maybe it's a case of 'better the devil you know' with Mike Ashley at the moment.

 

Football Finances: - http://www.newcastle-online.org/nufcforum/index.php/topic,67082.0.html

[AyeDubbleYoo]

Don't really know what to conclude about this.

 

There's lots of reasons why he should be able to (relatively low price, massive captive fan base, huge potential for the club etc).

 

But then there's a lot of reasons why he might struggle, the economic situation and the reality of football finances that is starting to bite.

[Guest Roger Kint]

Don't really know what to conclude about this.

 

There's lots of reasons why he should be able to (relatively low price, massive captive fan base, huge potential for the club etc).

 

But then there's a lot of reasons why he might struggle, the economic situation and the reality of football finances that is starting to bite.

 

Dont worry the NUST will save us.

 

Seriously though i agree with you, on the face of it we are a good thing but the current financial climate isnt encouraging

[bealios]

There are more potential buyers than you might think, and that isn't necessarily a good thing.

 

If (when) NUFC are sold, the club will most likely be relatively debt free, give or take a small overdraft balance. What this means is that there is plenty of scope for a leveraged buy out, i.e. someone borrows most of the money to buy the club, puts in relatively little of their own cash, and then lumps the debt (and interest payments) on to the club itself. This is exactly the Man Utd/Liverpool model. It means that it isn't only the mega rich who can buy the club, its anyone savvy enough to be able to convince a number of banks/lenders to lend a huge amount of cash, on the basis that the club would be performing well enough to service interest payments.

 

A rich cash buyer coming in isn't completely out of the question - there was serious Middle East interest which fell away just before Barry Moat's interest was announced. As a Premier League club, we have a better status, and might attract one of those types of buyer. The gates this season in the Championship might convince someone that this is potentially a massive club, on a par with Liverpool, with a bit of investment - and this is what the mega rich owners are looking for, status and fun.

 

 

 

 

[NG32]

I think the taste or football and business men has gone sour.  Feck knows what will happen.

[LoveItIfWeBeatU]

I agree that lots of potential buyers isn't necessarily a good thing. We think Mike Ashley's bad but look at Ali Al Faraj who owns Portsmouth.

 

A leveraged buy out surely has to be less likely in the current climate (although probably not impossible). When Man U and Liverpool were bought 'cheap' money and lenders were easy to find. Banks aren't as forthcoming any more. Football clubs aren't a good bet for getting your money back.

 

As for a rich buyer, it's a possibility but the new rules UEFA are trying to bring in are aimed at stopping people buying success to a certain extent.

[Colos Short and Curlies]

I will never rule out a consotium invovling Freddy Shepherd

[TRon]

There are more potential buyers than you might think, and that isn't necessarily a good thing.

 

If (when) NUFC are sold, the club will most likely be relatively debt free, give or take a small overdraft balance. What this means is that there is plenty of scope for a leveraged buy out, i.e. someone borrows most of the money to buy the club, puts in relatively little of their own cash, and then lumps the debt (and interest payments) on to the club itself. This is exactly the Man Utd/Liverpool model. It means that it isn't only the mega rich who can buy the club, its anyone savvy enough to be able to convince a number of banks/lenders to lend a huge amount of cash, on the basis that the club would be performing well enough to service interest payments.

 

A rich cash buyer coming in isn't completely out of the question - there was serious Middle East interest which fell away just before Barry Moat's interest was announced. As a Premier League club, we have a better status, and might attract one of those types of buyer. The gates this season in the Championship might convince someone that this is potentially a massive club, on a par with Liverpool, with a bit of investment - and this is what the mega rich owners are looking for, status and fun.

 

 

 

 

 

That's food for thought. We think Ashley's bad, but the owners of Man u and Liverpool are draining the life out of what were perfectly healthy clubs.

[AyeDubbleYoo]

I honestly don't want a buyout that saddles the club with massive debt... no football fan should want to put the future of their club at risk for short-term progress.

[bealios]

I agree that lots of potential buyers isn't necessarily a good thing. We think Mike Ashley's bad but look at Ali Al Faraj who owns Portsmouth.

 

A leveraged buy out surely has to be less likely in the current climate (although probably not impossible). When Man U and Liverpool were bought 'cheap' money and lenders were easy to find. Banks aren't as forthcoming any more. Football clubs aren't a good bet for getting your money back.

 

As for a rich buyer, it's a possibility but the new rules UEFA are trying to bring in are aimed at stopping people buying success to a certain extent.

 

I agree its more difficult but not impossible - Moat's bid was a leveraged buy out, although perhaps an example of why its difficult to get something like that in place. The trick is convincing the banks that it is a good investment - and a largely debt free premier league club with its own stadium (sort of) with a massive turnover and (very shortly) low wages isn't the worst bet in football terms.

 

Although I'm massively in favour of some form of the new rules proposed by Platini coming in, but given the threat of a breakway competition, I think it will be a fairly weak compromise, if indeed anything that is implemented.

[ikri]

There are more potential buyers than you might think, and that isn't necessarily a good thing.

 

If (when) NUFC are sold, the club will most likely be relatively debt free, give or take a small overdraft balance. What this means is that there is plenty of scope for a leveraged buy out, i.e. someone borrows most of the money to buy the club, puts in relatively little of their own cash, and then lumps the debt (and interest payments) on to the club itself. This is exactly the Man Utd/Liverpool model. It means that it isn't only the mega rich who can buy the club, its anyone savvy enough to be able to convince a number of banks/lenders to lend a huge amount of cash, on the basis that the club would be performing well enough to service interest payments.

 

A rich cash buyer coming in isn't completely out of the question - there was serious Middle East interest which fell away just before Barry Moat's interest was announced. As a Premier League club, we have a better status, and might attract one of those types of buyer. The gates this season in the Championship might convince someone that this is potentially a massive club, on a par with Liverpool, with a bit of investment - and this is what the mega rich owners are looking for, status and fun.

 

 

 

 

 

Considering the changes to European competitions that UEFA are talking about, I'd avoid a leveraged buyout like the plague.  Unless the repayment rates on the loans are extremely, unrealistically, low then we'd fall foul of the new rules and be denied entry to Europe.  I know that most people's first reaction is going to be don't be stupid, Europe? We'll be lucky to avoid relegation but when 14 of the 20 current Premiership teams would also fall foul of the proposed UEFA legislation all you'd really need to get a European spot is an income greater than your debt repayment rates something that we'd probably achieve should we gain promotion now that the wage bill is apparently close to being under control.

 

Unless NUST can find the money to buy the club, or unless there's a moneybags type rich buyer willing to buy the club without incurring any debts then frankly we're better off with Ashley than without (if he'd just realise it and deal with the club properly like hiring a good manager, etc.).

[bealios]

Assuming UEFA/FIFA proceed with an unamended plan that effectively vetos Man Utd, Real, Chelsea...(pretty much everyone except Arsenal) from their flagship money making competitions.

 

I'd love them to do something, but I can't seem them doing this.

[Robster]

Is Ashley looking for a buyer for NUFC ?

[EthiGeordie]

Weather you like it or not Mike Ashley is here for a long haul..... I am pretty certain he will build this team up. Make it successful and sell it at the end... That end might be 10 years from now

[AyeDubbleYoo]

Is Ashley looking for a buyer for NUFC ?

 

Officially no, if we go up then quite possibly yes.

[LoveItIfWeBeatU]

Assuming UEFA/FIFA proceed with an unamended plan that effectively vetos Man Utd, Real, Chelsea...(pretty much everyone except Arsenal) from their flagship money making competitions.

 

I'd love them to do something, but I can't seem them doing this.

 

Have a read of The Telegraph article I posted here today: -

http://www.newcastle-online.org/nufcforum/index.php/topic,67082.0.html

 

It says "Uefa's proposals have been backed by the influential European Club Association, but there remain misgivings in the English top flight." If the only misgivings are from the Premiership I'd imagine it could still get pushed through. Richard Scudamore's protests get weaker when clubs like Portsmouth and West Ham are in 'his' league.

http://en.wikipedia.org/wiki/European_Club_Association

[Consortium of one]

I'm still working on it.  I keep in contact with Mike on the phone.  He's hard to understand because he talks like he's always got food in his mouth.  I also talk to Barry Moat about once a month.  I can't understand him either as he talks so damned fast.  I'm still trying to raise money for my bid.  Stay tuned.

[ikri]

Assuming UEFA/FIFA proceed with an unamended plan that effectively vetos Man Utd, Real, Chelsea...(pretty much everyone except Arsenal) from their flagship money making competitions.

 

I'd love them to do something, but I can't seem them doing this.

 

Have a read of The Telegraph article I posted here today: -

http://www.newcastle-online.org/nufcforum/index.php/topic,67082.0.html

 

It says "Uefa's proposals have been backed by the influential European Club Association, but there remain misgivings in the English top flight." If the only misgivings are from the Premiership I'd imagine it could still get pushed through. Richard Scudamore's protests get weaker when clubs like Portsmouth and West Ham are in 'his' league.

http://en.wikipedia.org/wiki/European_Club_Association

 

Can't think why Scudamore & the 14 Premiership clubs that would be affected by the changes are against the proposals.

[KaKa]

You look at what has happened with Portsmouth and West Ham, and now even the situations at the bigger clubs like Liverpool and Man U and you really have to wonder what is going on. Dare I say, in a weird way I have actually come to appreciate Mike Ashley Somewhat (!), the cheapo that he is.

 

The club seems to be in very good shape financially now, and we should be in a healthy position if we are fortunate to go back up. At this moment in time I'm happy to see him stay for now, and intrigued by what will happen with the team if we go up. He essentially has the kind of manager that suits the structure that he originally had in mind, so would be interesting to see how it all plays out.

 

I'm expecting Nacho to return and lead the prem in assists next season and for Xisco to be top scorer with 30 goals all under Hughton.

[LoveItIfWeBeatU]

That was sort of my main reason for this thread. We've got people singing "Get out of my club" but they don't offer a realistic alternative owner. Mike Ashley has screwed up a lot but in a strange way some of the stuff that has happened is probably good for our long term future.

[AyeDubbleYoo]

 

I'm expecting Nacho to return and lead the prem in assists next season and for Xisco to be top scorer with 30 goals all under Hughton.

 

I was with you until this bit!

[KaKa]

 

I'm expecting Nacho to return and lead the prem in assists next season and for Xisco to be top scorer with 30 goals all under Hughton.

 

I was with you until this bit!

 

O ye of little faith ...

 

[LiquidAK]

Someone like Randy Lerner at Villa would be so perfect, really seems to have gone about everything the right way.

[ToonTastic]

He could always sell shares in the club rather than the whole lot. Stick it on the stockmarket.

[Skirge]

He WILL find buyers no doubt about that its just that he will fk up any chance of a sale as he is an utter cunt.