The proposed takeover of Newcastle United is off after a consortium headed by Saudi Arabia’s sovereign wealth Public Investment Fund withdrew their offer.
The consortium, which also had backing from Amanda Staveley-led PCP Capital Partners and the Reuben brothers, had submitted paperwork to the Premier League outlining the deal to buy the club from Mike Ashley back in April.
However, they have decided to pull out due to the length of time the Premier League were taking to ratify the deal allied to the financial uncertainty caused by Covid-19.
A statement from the group read: “With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
“We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans’ merit.
“Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.”
News of the failed takeover has predictably been greeted with bitter disappointment from Newcastle fans, desperate to see the end of Ashley following a controversy-filled 13 years at the helm.
Another takeover bites the dust
This is not the first time that Newcastle United has been the subject of interest from prospective new owners only for a deal to go up in smoke and supporters will be forgiven for feeling like this is groundhog day repeating itself.
After making his money with Sports Direct, Ashley bought out Newcastle from Sir John Hall and Freddie Shephard in 2007 for £135m but he has attempted to sell the club on numerous occasions since.
Ashley first sought to sell the club in September 2008 following a backlash from fans over the departure of club legend and manager Kevin Keegan before backtracking three months later over a lack of interest.
Soon after the club’s shock relegation to the Championship in 2009, Ashley again put the club up for sale and although there was interest from a local businessman Barry Moat, the club remained in his hands.
That same year, a group called Fans 410 Consortium led by former Tottenham defender Graham Roberts declared an interest in introducing a fan ownership model at St James’ Park but they were unable to make any inroads either.
Rumours regarding a potential sale began again in 2017 a year after a second relegation from the Premier League, this time involving mystery investors based in China before that too went quiet.
Then came Staveley’s first reported interest in 2017. Staveley, backed by Dubai-based PCP Capital Partners Middle Eastern investment fund, looked set to complete a £300m takeover in December. However, it fell through in January with a source close to the Newcastle owner telling Sky Sports News: “Attempts to reach a deal with Amanda Staveley and PCP have proved exhausting, frustrating and a complete waste of time.”
In 2019, Newcastle had two prospective buyers: one from the United Arab Emirates by Sheikh Khaled bin Zayed Al Nahyan and another fronted by former Manchester United and Chelsea director Peter Kenyon’s American investment fund GACP Sports. Although Sheikh Khaled’s representatives insisted that terms had been agreed, that proposal fell through, while Kenyon’s never got off the ground.
What happens next?
Attention will now switch to other potential buyers and Newcastle fans will be hoping that reports of a £350m bid from American tycoon Henry Mauriss are accurate.
Mauriss’ alleged offer for Newcastle is £50m more than was proposed by Staveley’s Saudia Arabia Public Investment Fund which would, in theory, attract Ashley’s interest.
The Californian initially made his money in the credit card business and since 2014 has been the CEO of Clear TV – a company that provides television broadcasts to airports and hospitals.
Outside of Mauriss’ apparent interest, no other interested buyers have yet been reported and it remains to be seen whether Staveley has a third crack at buying the club after saying she was ‘heartbroken’ at the latest takeover collapse.
It seems highly improbable, bordering on impossible, that Newcastle will become flush with cash from a new owner with deep pockets before the 2020-21 season kicks off on September 12.
Far more likely is that the club will enter its 14th season with Ashley at the helm, a prospect no Newcastle fan will welcome nor have envisaged a few weeks ago.
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from Football – inews.co.uk https://ift.tt/30f9uhf
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