Mike Ashley (former owner)

[Kanj]

2 hours ago, ManDoon said:

I got you, I'm with you now. So it's basically similar to an options contract, where in this case Mike collects the premium. That's a really smart idea actually.

 

You often see it in commercial real estate transactions where a property owner will sell an asset that has mortgage financing (debt) that has to remain in-place as it has costly pre-payment penalties.

 

So in my example, Mike would sell NUFC for 300M as a headline price, the Buyer would step into or assume a 100M loan (whatever that balance is currently) and only need to pay 200M in cash at closing. Mike then charges a for example, 5% interest on 100M mortgage over a say 5-year term to the new owner of NUFC. He could make something close to 13M in interest over 5 years (assuming some sort of traditional amortization of loan), get that 100M paid down in 5 years and/or sooner via balloon payments or simple buy-out option. 

 

So if said new owner had 400M to spend on a club, they'd be able to put 200M equity to buy, then have 200M equity to 1) purchase players over a few windows 2) invest in stadium 3) invest in business staff 4) investment in academy, etc. -- further they'd also be able to basically pin some of the TV money to pay down the debt to MA (it likely pays for itself) and then with said new business staff, try and go get proper commercial partners to increase the revenues etc. 

 

 

 

Edited August 10, 2021 by Kanji

[Kanj]

50 minutes ago, Hhtoon said:

 

I wonder whether that has been mooted, as I'm sure it was reported that other parties have come forward but PIF was up all front. Didn't really get what they meant but maybe your suggestion explains it!

 

To me it seems like MA is fixated on the PIF bid because it allows him to exit NUFC at a healthy profit and there has to be some discussions with PIF in terms of getting MA's business interests into the middle east. 

 

Because the club has aging facilities, a poor training ground, a poor academy, and very little staffing on football and business side (not to mention major investment in players, but I don't think that's a "deduct" on value) there is probably a ceiling by which an ambitious investor wants to pay for NUFC because it's simply not worth it. They will have raised say, 300-400M as a total investment basis over 3-4 year period, and if MA only will sell for 350M, that only leaves a buyer 50M to invest which probably doesn't sound as appetizing. 

[James]

5 hours ago, Kanji said:

Mike should just sell the delta between his "loan" and the equity position and then charge a nominal interest rate to the Buyer that has various step-down principle payments that eventually allows him to exit albeit with a premium. 

Would the accumulation of stock offset the depreciation of the assets? Market trading has indicated that forecast growth would lead to macroeconomic inflation where the discount rate would effectively demonstrate the present value.

[LV]

Think he probably wants his lump of money in one go because he’s got it earmarked for buying summat else. 
 

Christ knows what like, he’s bought most of the high street as it is. 
 

 

[gjohnson]

On 10/08/2021 at 20:56, LV said:

Think he probably wants his lump of money in one go because he’s got it earmarked for buying summat else. 
 

Christ knows what like, he’s bought most of the high street as it is. 
 

 

Despite the fact that the 'high street' is pretty much dead (thanks in part to Big Mike himself) There's got to be some chain that's bordering on going bankrupt left for him to target. Poundland? H&M? I don't know physical shops anymore?!

[nbthree3]

[huss9]

no chance the arabs are going to buy us. the best thing they could do for this club is to say they no longer retain an interest.

the fat cunt then has no defence for not looking at other buyers (not that he would give a sit though).

[Hhtoon]

2 minutes ago, huss9 said:

no chance the arabs are going to buy us. the best thing they could do for this club is to say they no longer retain an interest.

the fat cunt then has no defence for not looking at other buyers (not that he would give a sit though).

 

Yeah, Ashley isn't going to look anywhere else whilst he's got that valuation promised - reckon he'll drop 50m at least with another buyer.

[Ben]

Most owners would look at Sunday and think right we need to spend a few quid on 3 or 4 players and a manager or we are going down.

 

Ashley will think, we are going down so I better make a few quid on selling some players and if he gets his anti-competion payment he's quids in.

[Dokko]

RB should buy the club for £200m and sell it to PIF if they ever get approved. If they don't then Ashley sues the PL for the £100m+ he's lost out on. 

 

This would clearly define how much he's lost by the rejection and the PL are basically signing their own damages claim allowing RB to go through. 

[Darth Crooks]

Rafa Benitez? Alreet Keyesy.

[nbthree3]

 

[nbthree3]

 

[Willow]

[Miggys First Goal]

I’d like to know what else that 18% of Man City fans want. 

[gjohnson]

14 minutes ago, nbthree3 said:

 

Stuff like this should be spammed to every WUM in the media that says we should be grateful to Ashley

[Miggys First Goal]

And once again Leicester are the club you aspire to be. 

[Guest HTT II]

20 minutes ago, nbthree3 said:

 

3.1%? 53,000 fans say hello…

[ToonArmy1892]

Thank you, premier league.

[Big Geordie]

Shameful. God job that us Newcastle fans are deluded and won't be happy with our lot!

[Lazarus]

https://www.bbc.co.uk/news/business-58340082

 

How can we mess with the share price?

[Shearergol]

1 minute ago, Lazarus said:

https://www.bbc.co.uk/news/business-58340082

 

How can we mess with the share price?

 

Have to say, I know a number of people who know him, and he's actually sound. I know the fact that he's associated with Ashley makes him a cunt, but he really isn't.

[Colos Short and Curlies]

'Head of elevation' = Cleans the stairs and lifts.

 

With SD taking over the DW gyms my local gym and store has recently had a fit out to include SD, Game, OSC etc and as a first its actually made an improvement to the look and feel of the store. Small scale and you can see what the plan would have been with HoF. Shame he's him / had to buy us

[Ben]

Newcastle are a full member of the EPL the following is a statement from them, u der their own rules for investment Mike Ashley should not be one of the 20 owners.

 

"The principal objective of the Premier League is to stage the most competitive and compelling league with world-class players and, through the equitable distribution of broadcast and commercial revenues, to enable clubs to develop so that European competition is a realistic aim and, once there, they are playing at a level where they can compete effectively."

[Paully]

That 2nd comment