Newcastle takeover talks are under way but fans should be cautious

Mike Ashley has begun the process of selling Newcastle United to the Dubai-based Bin Zayed Group, and while there is no official confirmation from within St James’ Park, i understands the two parties are in talks.

Claims, however, that a £350million agreement has been reached are being viewed as premature inside the club. There is reluctance at Newcastle to be anything other than cautious, given that Ashley is thought to have been in this position before, but following the leak of discussions in The Sun, the Bin Zayed Group released a statement on Monday afternoon and said they had “agreed terms” with Ashley.

“We can confirm the representatives of his Highness Sheikh Khaled Bin Zayed Al Nahyan are in discussions with Mike Ashley and his team about the proposed acquisition of Newcastle United Football Club,” began a short statement.

“We view it as an honour to have the opportunity to build on the strong support, history and tradition of the club.

“We have agreed terms and are working hard to complete the transaction at the earliest opportunity. Best Regards, Midhat Kidwai, group managing director, Bin Zayed Group.”

Ashley’s key requirements

Newcastle’s caution is based on the belief that successful club takeovers only emerge in public once a deal is completed. At least twice in his 12-year tenure Ashley has been said to have been on the brink of selling only for proposed deals to collapse despite seeming advanced.

There is another reason for hesitation on Tyneside as the Bin Zayed Group – headed by Sheikh Khaled Bin Zayed, related to Sheikh Mansour of Manchester City – failed in an effort to buy Liverpool two years ago.

It was said then that despite reports regarding Bin Zayed’s wealth, the proposed takeover ended when the group could not provide adequate proof of funding.

That is one of Ashley’s key requirements and only if it has been met will serious negotiations have begun. Ashley bought the club for an initial £134m in 2007 and owns it via St James Holdings Limited. He publicly placed the club on the market in October 2017 saying: “To give the club the best possible opportunity of securing the positioning and investment necessary to take it to the next level, at what is an important time in its history, its present ownership has determined that it is in the best interests of Newcastle United and its fans for the club to be put up for sale.”

Rafa Benitez, trying to negotiate a new contract as manager of Newcastle, is awaiting news.