Various: N-O has lost the plot over potential end of Mike Ashley's tenure

[Darth Crooks]

All it took was Andi Peters all along. The 5th element. Hidden in plain sight.

 

[NEEJ]

Chris Holt with an interesting Tweet but can’t post the link as protected.

 

Was that the one that had a reply from a guy outlining what he believed the 'loan' was all about? Seemed very plauisble and sensible.

 

This bit?

 

One more comment from me before I try to get some bloody work done:

 

 

There's a lot of talk on Twitter about "Ashley loaning Staveley money" and how this seems incredibly unlikely.

 

 

I agree this would be unlikely but, as per the document we've seen, this is not the case at all. What has happened is that SJHL not Ashley has loaned Staveley money. While this may seem like the same thing, I assure you it isn't. Ashley is not SJHL despite owning all the shares in the company. SJHL has a distinct legal personality and, as a result, has its own balance sheet.

 

 

As a result, any money SJHL has loaned to Staveley has not came out of Ashley's pocket. Rather, it's came out of SJHL's, i.e. the club's, bank account.

 

 

This means that Staveley can use the funds received from the club to buy Ashley's shares in SJHL. He'll receive all of this at once and, subject to other agreements which may, or may not, be in place, won't be owed anything from Staveley going forward. Instead, Stavelely has to repay the club (SJHL) and PCP have provided security to the club in the event that she doesn't.

 

 

For example, the process will likely work as follows:

 

    SJHL enters into a loan agreement with Staveley, with PCP providing the security for such loan;

 

    Staveley, the Saudis and the Reuben Brothers invest into a JV company. Staveley's investment comes from the loan received from the club;

 

    the JV company then buys all of the shares in SJHL, i.e. the club, from Ashley for X amount;

 

    Ashley no longer has any ownership or control over Newcastle, and (subject to agreements we haven't seen) isn't owed any money going forward; and

 

    some time in the future Staveley repays SJHL.

 

 

Hope this clears things up.

[LV]

That makes much more sense

[SteV]

Chris Holt with an interesting Tweet but can’t post the link as protected.

 

Was that the one that had a reply from a guy outlining what he believed the 'loan' was all about? Seemed very plauisble and sensible.

 

This bit?

 

One more comment from me before I try to get some bloody work done:

 

 

There's a lot of talk on Twitter about "Ashley loaning Staveley money" and how this seems incredibly unlikely.

 

 

I agree this would be unlikely but, as per the document we've seen, this is not the case at all. What has happened is that SJHL not Ashley has loaned Staveley money. While this may seem like the same thing, I assure you it isn't. Ashley is not SJHL despite owning all the shares in the company. SJHL has a distinct legal personality and, as a result, has its own balance sheet.

 

 

As a result, any money SJHL has loaned to Staveley has not came out of Ashley's pocket. Rather, it's came out of SJHL's, i.e. the club's, bank account.

 

 

This means that Staveley can use the funds received from the club to buy Ashley's shares in SJHL. He'll receive all of this at once and, subject to other agreements which may, or may not, be in place, won't be owed anything from Staveley going forward. Instead, Stavelely has to repay the club (SJHL) and PCP have provided security to the club in the event that she doesn't.

 

 

For example, the process will likely work as follows:

 

    SJHL enters into a loan agreement with Staveley, with PCP providing the security for such loan;

 

    Staveley, the Saudis and the Reuben Brothers invest into a JV company. Staveley's investment comes from the loan received from the club;

 

    the JV company then buys all of the shares in SJHL, i.e. the club, from Ashley for X amount;

 

    Ashley no longer has any ownership or control over Newcastle, and (subject to agreements we haven't seen) isn't owed any money going forward; and

 

    some time in the future Staveley repays SJHL.

 

 

Hope this clears things up.

 

Yep, from a layman's POV that seems perfectly plausible.

[Minhosa]

Chris Holt:

 

The name Michael Murray and mention of £13m made me wonder whether Strawberry place is in the deal.

 

Murray was Ashley's property man, never had owt to do with NUFC before, and £13m would be a little bit more than Ashley is supposed to be getting for the development.

 

Too Daft?

 

Michael Murray is Ashley's son in law.

[Pilko]

Anyone able to post the Telegraph article in full?

[Scoot]

PL Doing checks...

 

 

Anyone a subscriber and fancy a copy and paste?

[Kanj]

The telegraph article is saying the loan in question is essentially PCP stepping into the "loan" owed to Ashley (MASH?). So in essence once the club is sold and all the cash is wired in, that "debt" to MASH/Ashley will be wiped out.

 

 

The £340million takeover of Newcastle United, backed by the Public Investment Fund of Saudi Arabia, has moved closer to being completed.

 

Documents filed at Companies House show that the deal is progressing. The Telegraph understands that a sale price has been agreed with Mike Ashley and the Premier League is carrying out its checks under its owners and directors test. If there are no problems a formal announcement is expected be made.

 

Telegraph Sport revealed on March 29 that the takeover had moved a significant step closer with the Premier League being formally made aware of the intention to do the deal.

 

The takeover is being led by Amanda Staveley, who heads PCP Capital Partners, with the most significant backing coming from the PIF, which is the world’s largest sovereign wealth fund and is expected to take an 80 per cent stake in Newcastle.

 

Staveley will acquire 10 per cent with the remaining 10 per cent being bought by the Reuben Brothers, who are one of the wealthiest families in Britain with a portfolio worth £18billion. They already own Newcastle racecourse.

 

The documents at Companies House show that Ashley’s company, St James Holding, is lending £150m to PCP. There was confusion as to what this meant, and whether Ashley was in some way helping to fund the deal, but The Telegraph understands it is the money owed to him in loans to Newcastle. Staveley is now taking that on.

 

It certainly does not mean that the prospective new owners are struggling to fund the takeover and probably does relate to the favourable terms they can agree with Ashley to complete the deal. The debt is expected to fall away once the takeover goes through.

 

Mike Ashley

Mike Ashley has owned Newcastle for 13 years CREDIT: PA

The documents also appear to show that a deposit of £13m will be paid by Staveley as part of the transaction. If the deal goes through it will end Ashley’s unhappy 13-year ownership of the club, which will be celebrated by Newcastle supporters, and also brings to a close one of the longest ever takeover sagas.

 

The deal will also come in the midst of the coronavirus pandemic but the buyers are taking a long-term, strategic view.

 

Staveley, Jamie Reuben, the son of David Reuben and the driving force behind his family’s involvement in the deal, and Yasir Al-Rumayyan, the governor of PIF, are due to be directors of Newcastle along with two other representatives. Al-Rumayyan is expected be chairman of Newcastle. Under league rules Jamie Reuben, a 33-year-old sports enthusiast, will have to resign as a director of Queen’s Park Rangers so he can also join the board.

 

The talks have intensified since the start of this year with the consortium code-naming their plans “Project Zebra” - because of Newcastle’s black-and-white stripes – but have been tortuous at times. A complication is that the buyers involve three parties who all have to reach an agreement on discussions.

 

Staveley has been trying to buy Newcastle since October 2017 and had a series of bids rejected by Ashley but the key – the game-changer - is the involvement of PIF, which is chaired by Saudi Crown Prince Mohammed bin Salman, and the vast backing that potentially brings.

 

The Saudis have been considering how best to make a move into football for some time and have examined buying other clubs. Questions will be asked to why, with their wealth, the Saudis want to bring in minority partners but it is not unusual to the way they structure deals.

 

The fund is central to Saudi Arabia’s Vision 2030, a plan spearheaded by Prince Mohammed to diversify the economy away from oil and is also the driving force behind the country’s ambitions to develop new tourist and entertainment industries.

 

Getty Images

Newcastle have been relegated twice, the first time in 2009 under Alan Shearer, since Ashley has owned the club CREDIT: Getty Images

The proposed involvement of PIF will lead to an expectation of huge spending at Newcastle and although there is a long-term plan to invest, with hundreds of millions of pounds available, the project is expected to be one of steady growth. Nevertheless a substantial transfer budget has been earmarked for the next few years with the aim of developing Newcastle into a club that can consistently challenge for European places.

 

An obvious move by the new owners is expected to be to take staff at Newcastle out of ‘furlough’ so they are free to work and not to rely upon the Government’s coronavirus job protection scheme which has caused such controversy when used by Premier League clubs.

 

Ashley bought Newcastle for £134.4m in 2007 and the Sports Direct owner has proved an unpopular owner at St James’ Park. Newcastle have been relegated twice from the Premier League during Ashley’s reign with the businessman accused of failing to invest by supporters.

 

Staveley’s ability to buy Newcastle has been questioned despite a series of proposed bids with, at one point, sources close to Ashley releasing a statement claiming “attempts to reach a deal have proved to be exhausting, frustrating and a complete waste of time”.

 

[mrmojorisin75]

Chris Holt with an interesting Tweet but can’t post the link as protected.

 

Was that the one that had a reply from a guy outlining what he believed the 'loan' was all about? Seemed very plauisble and sensible.

 

This bit?

 

One more comment from me before I try to get some bloody work done:

 

 

There's a lot of talk on Twitter about "Ashley loaning Staveley money" and how this seems incredibly unlikely.

 

 

I agree this would be unlikely but, as per the document we've seen, this is not the case at all. What has happened is that SJHL not Ashley has loaned Staveley money. While this may seem like the same thing, I assure you it isn't. Ashley is not SJHL despite owning all the shares in the company. SJHL has a distinct legal personality and, as a result, has its own balance sheet.

 

 

As a result, any money SJHL has loaned to Staveley has not came out of Ashley's pocket. Rather, it's came out of SJHL's, i.e. the club's, bank account.

 

 

This means that Staveley can use the funds received from the club to buy Ashley's shares in SJHL. He'll receive all of this at once and, subject to other agreements which may, or may not, be in place, won't be owed anything from Staveley going forward. Instead, Stavelely has to repay the club (SJHL) and PCP have provided security to the club in the event that she doesn't.

 

 

For example, the process will likely work as follows:

 

    SJHL enters into a loan agreement with Staveley, with PCP providing the security for such loan;

 

    Staveley, the Saudis and the Reuben Brothers invest into a JV company. Staveley's investment comes from the loan received from the club;

 

    the JV company then buys all of the shares in SJHL, i.e. the club, from Ashley for X amount;

 

    Ashley no longer has any ownership or control over Newcastle, and (subject to agreements we haven't seen) isn't owed any money going forward; and

 

    some time in the future Staveley repays SJHL.

 

 

Hope this clears things up.

 

Yep, from a layman's POV that seems perfectly plausible.

 

so staveley is in effect loaning her "buy in" for the club from the club itself and will pay back at a later date, presumably when she gets the barclays thing sorted out?

[RS]

It’s getting close to becoming a reality you know.  Ashley will jump straight back in and buy sunderland. It’s obvious.

[loki679]

Chris Holt with an interesting Tweet but can’t post the link as protected.

 

Was that the one that had a reply from a guy outlining what he believed the 'loan' was all about? Seemed very plauisble and sensible.

 

This bit?

 

One more comment from me before I try to get some bloody work done:

 

 

There's a lot of talk on Twitter about "Ashley loaning Staveley money" and how this seems incredibly unlikely.

 

 

I agree this would be unlikely but, as per the document we've seen, this is not the case at all. What has happened is that SJHL not Ashley has loaned Staveley money. While this may seem like the same thing, I assure you it isn't. Ashley is not SJHL despite owning all the shares in the company. SJHL has a distinct legal personality and, as a result, has its own balance sheet.

 

 

As a result, any money SJHL has loaned to Staveley has not came out of Ashley's pocket. Rather, it's came out of SJHL's, i.e. the club's, bank account.

 

 

This means that Staveley can use the funds received from the club to buy Ashley's shares in SJHL. He'll receive all of this at once and, subject to other agreements which may, or may not, be in place, won't be owed anything from Staveley going forward. Instead, Stavelely has to repay the club (SJHL) and PCP have provided security to the club in the event that she doesn't.

 

 

For example, the process will likely work as follows:

 

    SJHL enters into a loan agreement with Staveley, with PCP providing the security for such loan;

 

    Staveley, the Saudis and the Reuben Brothers invest into a JV company. Staveley's investment comes from the loan received from the club;

 

    the JV company then buys all of the shares in SJHL, i.e. the club, from Ashley for X amount;

 

    Ashley no longer has any ownership or control over Newcastle, and (subject to agreements we haven't seen) isn't owed any money going forward; and

 

    some time in the future Staveley repays SJHL.

 

 

Hope this clears things up.

 

Yep, from a layman's POV that seems perfectly plausible.

 

Where does SJHL get £150m to loan Staveley from?

[SteV]

Chris Holt with an interesting Tweet but can’t post the link as protected.

 

Was that the one that had a reply from a guy outlining what he believed the 'loan' was all about? Seemed very plauisble and sensible.

 

This bit?

 

One more comment from me before I try to get some bloody work done:

 

 

There's a lot of talk on Twitter about "Ashley loaning Staveley money" and how this seems incredibly unlikely.

 

 

I agree this would be unlikely but, as per the document we've seen, this is not the case at all. What has happened is that SJHL not Ashley has loaned Staveley money. While this may seem like the same thing, I assure you it isn't. Ashley is not SJHL despite owning all the shares in the company. SJHL has a distinct legal personality and, as a result, has its own balance sheet.

 

 

As a result, any money SJHL has loaned to Staveley has not came out of Ashley's pocket. Rather, it's came out of SJHL's, i.e. the club's, bank account.

 

 

This means that Staveley can use the funds received from the club to buy Ashley's shares in SJHL. He'll receive all of this at once and, subject to other agreements which may, or may not, be in place, won't be owed anything from Staveley going forward. Instead, Stavelely has to repay the club (SJHL) and PCP have provided security to the club in the event that she doesn't.

 

 

For example, the process will likely work as follows:

 

    SJHL enters into a loan agreement with Staveley, with PCP providing the security for such loan;

 

    Staveley, the Saudis and the Reuben Brothers invest into a JV company. Staveley's investment comes from the loan received from the club;

 

    the JV company then buys all of the shares in SJHL, i.e. the club, from Ashley for X amount;

 

    Ashley no longer has any ownership or control over Newcastle, and (subject to agreements we haven't seen) isn't owed any money going forward; and

 

    some time in the future Staveley repays SJHL.

 

 

Hope this clears things up.

 

Yep, from a layman's POV that seems perfectly plausible.

 

so staveley is in effect loaning her "buy in" for the club from the club itself and will pay back at a later date, presumably when she gets the barclays thing sorted out?

 

Could be. Or the Saudi's are going to cover that part once it goes through? Not sure how it all sits with who has to pass the fit-and-proper test?

[Kanj]

just read my post above.

[mrmojorisin75]

this is getting to me now

 

starting to have flashbacks to european nights

[Guest neesy111]

this is getting to me now

 

starting to have flashbacks to european nights

 

Get that champions league theme tune played....

[mrmojorisin75]

this is getting to me now

 

starting to have flashbacks to european nights

 

Get that champions league theme tune played....

 

don't man

[jdckelly]

the more I read about high level financial deals, stocks etc the less I seem to understand

[xLiaaamx]

Come on, please. Let this one happen. We deserve to be the richest Club ever after all this 

 

Let Dell go and buy Sunderland after all if this happens. They can be super rich as long we're ultra rich 

[Mike]

We're just gonna hope, then? Just gonna ignore the wires hanging out of the cheese and that ominous hum?

 

[Guest]

Also from Chris Holt (I always say that in my head the same way Steve Holt does).

 

If I had to guess I'd say Mike Ashley's £144m loan to NUFC is now a £150m to Staveley and her backers.

 

I'd hope it's very short term to facilitate a clean sale, rather than being left in play and paying interest or offering other benefits in the mean time.

[Carlito]

this is getting to me now

 

starting to have flashbacks to european nights

 

Get that champions league theme tune played....

 

don't man

 

Too late...

 

 

 

 

 

[LV]

It’s getting close to becoming a reality you know.  Ashley will jump straight back in and buy sunderland. It’s obvious.

 

Think of all the free SD advertising exposure he can get through Netflix. Go on Mike, you know it makes sense.

[SuperFlat]

Were just gonna hope, then? Just gonna ignore the wires hanging out of the cheese and that ominous hum?

 

Who's hoping, like? It's literally there in black and white.

[Mike]

Were just gonna hope, then? Just gonna ignore the wires hanging out of the cheese and that ominous hum?

 

Who's hoping, like? It's literally there in black and white.

Wait is it actually happening?

[LV]

We're just gonna hope, then? Just gonna ignore the wires hanging out of the cheese and that ominous hum?

 

 

 

I’m just gonna take a little nibble