Mike Ashley puts Newcastle on the block

[sniffer 0]

It shows how fucked we are that an arab with limitless amounts of money would rather buy a mickey mouse team like Portsmouth than us.

[Delscottio 0]

If it's true about Ashley writing off the debt owed to him and the £100m being an all in price I can see a lot of interest in the club. If the accounts are clear I doubt it would take that long to get the legalities sorted.

 

What a pantomime...

[Marko 0]

Can somebody explain to me what this barclays loan thingy is? I'm a little confused to the seriousness of all this I mean I understand that with Ashley trying to sell the club it probably means that he hasnt been able to agree terms with shearer and we can kiss good bye to a summer of clearing out the deadwood and investing properly.

 

Ashley has the club for sale for £100m and he also has a loan to the club for £100m which obviously he will want back from any buyer of the club.

 

So what about the barclays loan thing? what exactly is it and how does it affect us?

[Park Life 71]

If it's true about Ashley writing off the debt owed to him and the £100m being an all in price I can see a lot of interest in the club. If the accounts are clear I doubt it would take that long to get the legalities sorted.

 

What a pantomime...

 

I sometimes lay in bed laughing and Mrs P says..."What is it"?

 

Well nobody could understand it could they?

[Park Life 71]

Can somebody explain to me what this barclays loan thingy is? I'm a little confused to the seriousness of all this I mean I understand that with Ashley trying to sell the club it probably means that he hasnt been able to agree terms with shearer and we can kiss good bye to a summer of clearing out the deadwood and investing properly.

 

Ashley has the club for sale for £100m and he also has a loan to the club for £100m which obviously he will want back from any buyer of the club.

 

So what about the barclays loan thing? what exactly is it and how does it affect us?

 

If he wants his 100m back he'll never get a buyer.

 

The bank thing can be restructured I'd imagine with a guarantee from the new buyer. Matt would know more.

[Marko 0]

So this Barclays loan thing is just a loan the club took out from the bank is it? so that means we do owe money to the bank and the situation is a lot worse than just owing £100m to Ashley

[Jimbo 175]

Mike Ashley races for the exit

George Caulkin

 

Alan Shearer’s blueprint for Newcastle United’s future is in the hands of the club’s bankers after Mike Ashley’s decision to end his “catastrophic” tenure at St James’ Park “as soon as I can”. The sportswear retailer has reappointed Keith Harris, the chairman of Seymour Pierce, the City advisers, to push through the sale of Newcastle, with a potential bidder already understood to have expressed a firm interest in the relegated club.

 

Shearer is effectively working for nothing after the expiration of his eight-match contract, but expects to hear this week whether his plans for the wholesale restructuring of Newcastle have been approved by Barclays Bank, which has provided Newcastle with a £40 million working capital facility. With costs being slashed in the wake of demotion, about 120 of the club’s employees are likely to lose their jobs.

 

Harris, who had been charged with finding a buyer last winter before Ashley withdrew the club from the market, was a visible presence at Newcastle’s training ground last week, which will not have escaped Shearer’s notice.

 

Shearer is committed to restoring Newcastle’s fortunes and remains optimistic that a positive outcome will emerge in the next few days. There is a feeling within his camp that Newcastle with Shearer in situ represent a more attractive proposition for investors than the opposite; it is believed that broad agreement with Ashley has been reached over transfer funds, although Shearer may have to compromise on his request for a £2.5 million salary.

 

The scale of Ashley’s desperation to sell is apparent in his willingness to write off the interest-free loan he has made to Newcastle. The founder of Sports Direct bought the club for £134 million two years ago and has subsequently pumped in a further £110 million to pay off debts, but is willing to accept a total price of £100 million; industry insiders have suggested that £80 million may be a more realistic figure.

 

Harris’s firm signed a binding engagement letter with Ashley last week with the aim of achieving a speedy sale. In spite of much noise emanating from Freddy Shepherd, there has been no contact with Newcastle’s former chairman and even a much-reduced price would appear to be a significant deterrent to any wholly local consortium.

 

It will take at least a month for any deal to be completed, but there is no longer any debate about Ashley’s motivation. “Of course I regret it,” he said of buying Newcastle. “I never said I was an expert in football clubs. I was just a fan — although a very wealthy fan. But I’m not so wealthy now. I put my money into it and I tried my best. But I accept my best was woefully short. I am genuinely sorry for everybody about what has happened.”

 

Internally, there is no debate about Shearer’s suitability for the task. “There will obviously be a massive clear-out,” Damien Duff, the Ireland winger, said. “There are budgets in the Championship and I’m sure the gaffer knows who cares about the club and who stays. There is only one man to get us back up and that is Alan Shearer. I’m sure it’ll be him and I’m sure he’ll take the job.”

[Matt 0]

So this Barclays loan thing is just a loan the club took out from the bank is it? so that means we do owe money to the bank and the situation is a lot worse than just owing £100m to Ashley

 

First reports are that they wanted us to reduce our overdraft, which they are totally entitled to. Having this facility isn't debt- only if we use it. If we were fully using our overdraft and it is going to be reduced to £20m then we need to get it down quickly. I would add that this seems a huge amount of money for a club with our turnover. It is also unusual to have a mortgage in place (as Barclays have) just for an overdraft.

 

I think what could be in place is a working capital facility with a clause that reduces in the event of relegation. Nothing unusual in that really. This is more likely to be secured and also makes sense in terms of its size.

 

Edit- beaten to it by Jimbo!

Edited May 31, 2009 by Matt

[Delscottio 0]

If it's true about Ashley writing off the debt owed to him and the £100m being an all in price I can see a lot of interest in the club. If the accounts are clear I doubt it would take that long to get the legalities sorted.

 

What a pantomime...

 

I sometimes lay in bed laughing and Mrs P says..."What is it"?

 

Well nobody could understand it could they?

 

 

The daft thing is I actually enjoy it.

 

Bare with me I know it sounds stupid, but what is football all about? - memories really, its entertainment for the working classes. The club has given me some cracking memories to look back on and argue about, not all good.

 

I would absolutely hate to be a club that trundles along with nothing really happening - ever. Take your shitty clubs that have stability and structure and shove them up ya arse*, I know which group fans will have the most to talk about in 30 years time.

 

When I am on my deathbed I want to look back and say I've experienced as much as I could, fuck me, supporting Newcastle certainly helps in that area.

 

 

*not directed at you!

[Marko 0]

So this Barclays loan thing is just a loan the club took out from the bank is it? so that means we do owe money to the bank and the situation is a lot worse than just owing £100m to Ashley

 

First reports are that they wanted us to reduce our overdraft, which they are totally entitled to. Having this facility isn't debt- only if we use it. If we were fully using our overdraft and it is going to be reduced to £20m then we need to get it down quickly. I would add that this seems a huge amount of money for a club with our turnover. It is also unusual to have a mortgage in place (as Barclays have) just for an overdraft.

 

I think what could be in place is a working capital facility with a clause that reduces in the event of relegation. Nothing unusual in that really. This is more likely to be secured and also makes sense in terms of its size.

 

Edit- beaten to it by Jimbo!

 

 

thanks for the info mate Honestly didn't know we were owing money to the bank! that makes it a lot worse!

[Delscottio 0]

So this Barclays loan thing is just a loan the club took out from the bank is it? so that means we do owe money to the bank and the situation is a lot worse than just owing £100m to Ashley

 

First reports are that they wanted us to reduce our overdraft, which they are totally entitled to. Having this facility isn't debt- only if we use it. If we were fully using our overdraft and it is going to be reduced to £20m then we need to get it down quickly. I would add that this seems a huge amount of money for a club with our turnover. It is also unusual to have a mortgage in place (as Barclays have) just for an overdraft.

 

I think what could be in place is a working capital facility with a clause that reduces in the event of relegation. Nothing unusual in that really. This is more likely to be secured and also makes sense in terms of its size.

 

Edit- beaten to it by Jimbo!

 

 

thanks for the info mate Honestly didn't know we were owing money to the bank! that makes it a lot worse!

 

 

Not so sure of that, a lot of people like to see debt on a a companies books. It allows opportunities for restructuring etc. Makes you wonder if the fat twat has lied about other stuff (re finances) though.

[The Fish 10963]

The scale of Ashley's desperation to sell is apparent in his willingness to write off the interest-free loan he has made to Newcastle. The founder of Sports Direct bought the club for £134 million two years ago and has subsequently pumped in a further £110 million to pay off debts, but is willing to accept a total price of £100 million; industry insiders have suggested that £80 million may be a more realistic figure.

 

 

so buy the club for £100m and you don't get the debt, you're saddled with the wage shackles and that Barclays Loan... but other than that, you're clean and clear?

[David Kelly 1260]

Mike Ashley races for the exit

George Caulkin

 

Alan Shearer’s blueprint for Newcastle United’s future is in the hands of the club’s bankers after Mike Ashley’s decision to end his “catastrophic” tenure at St James’ Park “as soon as I can”. The sportswear retailer has reappointed Keith Harris, the chairman of Seymour Pierce, the City advisers, to push through the sale of Newcastle, with a potential bidder already understood to have expressed a firm interest in the relegated club.

 

Shearer is effectively working for nothing after the expiration of his eight-match contract, but expects to hear this week whether his plans for the wholesale restructuring of Newcastle have been approved by Barclays Bank, which has provided Newcastle with a £40 million working capital facility. With costs being slashed in the wake of demotion, about 120 of the club’s employees are likely to lose their jobs.

 

Harris, who had been charged with finding a buyer last winter before Ashley withdrew the club from the market, was a visible presence at Newcastle’s training ground last week, which will not have escaped Shearer’s notice.

 

Shearer is committed to restoring Newcastle’s fortunes and remains optimistic that a positive outcome will emerge in the next few days. There is a feeling within his camp that Newcastle with Shearer in situ represent a more attractive proposition for investors than the opposite; it is believed that broad agreement with Ashley has been reached over transfer funds, although Shearer may have to compromise on his request for a £2.5 million salary.

 

The scale of Ashley’s desperation to sell is apparent in his willingness to write off the interest-free loan he has made to Newcastle. The founder of Sports Direct bought the club for £134 million two years ago and has subsequently pumped in a further £110 million to pay off debts, but is willing to accept a total price of £100 million; industry insiders have suggested that £80 million may be a more realistic figure.

 

Harris’s firm signed a binding engagement letter with Ashley last week with the aim of achieving a speedy sale. In spite of much noise emanating from Freddy Shepherd, there has been no contact with Newcastle’s former chairman and even a much-reduced price would appear to be a significant deterrent to any wholly local consortium.

 

It will take at least a month for any deal to be completed, but there is no longer any debate about Ashley’s motivation. “Of course I regret it,” he said of buying Newcastle. “I never said I was an expert in football clubs. I was just a fan — although a very wealthy fan. But I’m not so wealthy now. I put my money into it and I tried my best. But I accept my best was woefully short. I am genuinely sorry for everybody about what has happened.”

 

Internally, there is no debate about Shearer’s suitability for the task. “There will obviously be a massive clear-out,” Damien Duff, the Ireland winger, said. “There are budgets in the Championship and I’m sure the gaffer knows who cares about the club and who stays. There is only one man to get us back up and that is Alan Shearer. I’m sure it’ll be him and I’m sure he’ll take the job.”

Tbf this all sounds a bit more promissing. No doubt Ashley will find some way to fuck it up more.

[Craig 6700]

The scale of Ashley's desperation to sell is apparent in his willingness to write off the interest-free loan he has made to Newcastle. The founder of Sports Direct bought the club for £134 million two years ago and has subsequently pumped in a further £110 million to pay off debts, but is willing to accept a total price of £100 million; industry insiders have suggested that £80 million may be a more realistic figure.

 

 

so buy the club for £100m and you don't get the debt, you're saddled with the wage shackles and that Barclays Loan... but other than that, you're clean and clear?

 

All sounds a bit 'too good to be true' to me... If I was a prospective purchaser, I'd be looking for the catch.

[NJS 4411]

so buy the club for £100m and you don't get the debt, you're saddled with the wage shackles and that Barclays Loan... but other than that, you're clean and clear?

 

Sometimes I hate myself for being an optimist - if someone can actually buy the club for £80m with a £40m overdraft facility then that would surely leave someone with only a "modest" amount of money to get an absoilute bargain if they pump in enough for a quick promotion.

[Matt 0]

The scale of Ashley's desperation to sell is apparent in his willingness to write off the interest-free loan he has made to Newcastle. The founder of Sports Direct bought the club for £134 million two years ago and has subsequently pumped in a further £110 million to pay off debts, but is willing to accept a total price of £100 million; industry insiders have suggested that £80 million may be a more realistic figure.

 

 

so buy the club for £100m and you don't get the debt, you're saddled with the wage shackles and that Barclays Loan... but other than that, you're clean and clear?

 

All sounds a bit 'too good to be true' to me... If I was a prospective purchaser, I'd be looking for the catch.

 

Barclays will want their facility back and at the very lease will exercise the right to renegotiate (jack up the price).

 

The catch is that you're going to need to find another £50m or so just for the club to stabilise and put in a half-decent effort in the second tier. Is that not enough?

[NJS 4411]

The catch is that you're going to need to find another £50m or so just for the club to stabilise and put in a half-decent effort in the second tier. Is that not enough?

 

So for say £200m all in including a decent transfer kitty you could get a debt freee premiership club (assuming it works) with the 4th or 5th biggest turnover with the cliched "massive potential" - I still think it sounds like a bargain to the the right sort of person/people,

[The Fish 10963]

flip side of that is for £200m you're getting a side where the crushing expectation, staggering wage bill, ramshackle backroom staff and terrible squad, will hamstring your attempts to have a Premiership club, leaving you vilified in the press, ruined in the bank and mentally unstable

 

but I like yours better

[NewJerseyMag 0]

If we come out of this with no debt and rid of Ashley and Llambias it would be an excellent result.

 

Sadly, the way things have been going I can't see it being this straightforward and expect the Fat Controller to pull one final stunt.

 

This story from the Independant seems to have a few positives in it.

 

Alan Shearer's desire to be appointed permanent manager of Newcastle United has not been affected by owner Mike Ashley's decision to put the club up for sale again, but Shearer's future in part now rests on the accountants of the banks involved in brokering a sale and those dealing with Newcastle's existing loans.

 

 

Shearer was not taken by surprise when news of Ashley's decision to sell filtered out on Saturday night. In the discussions between the two men last week Ashley made it clear that he was planning to sell up and that he was prepared to take a massive hit on the £250m he says that he has put into Newcastle. The price is £100m and in the current climate, Ashley is likely to be forced to accept less.

 

The presence last Wednesday at the training ground of Keith Harris, the banker commissioned to broker a deal for Ashley when he first put Newcastle on the market last September, was significant and Harris's bank Seymour Pierce has again been charged with finding a buyer. It was being said in the City of London yesterday that there is a candidate already in the wings. Seymour Pierce will be officially appointed today.

 

An outline four-year contract for Shearer and his assistants Iain Dowie and Paul Ferris has been agreed, but until that is ratified by banks dealing with outstanding financial details, there are unlikely to be any signatures. It is hoped within the club that the issue can be sorted out this week.

 

Ashley agrees that selling the club with Shearer already on board and making decisions makes it more attractive, and transfer details and budgets have again been agreed upon. But a prospective buyer, or bank guarantors, would presumably wish to have some input into Shearer's contract, particularly if it is for four years.

 

The £150m-£180m loss that Ashley is set to incur means that the debts he inherited from the previous regime at St James' Park are wiped out. In time that will come to be seen as his greatest contribution to an otherwise frighteningly unstable two years at the club.

Shearer's eight-game contract expired eight days ago but the 38-year-old still went into the training ground every day last week and is expected to do so again this week. But Shearer needs and wants to get on with reshaping the relegated squad. Michael Owen is one of those who will depart, his contract is up and it is implausible that he will be offered another, but Everton's interest may not be as strong as Owen hopes.

[Wally 0]

Maybe you now your regretting trying to get 400 million for it from the Citeh people you fat tub of horse spunk.

[meshman 0]

[smoggeordie 0]

SSN confirm they've spoken to a "senior member of the Newcastle hierarchy" who says the club has had no interest from any potential buyers.

[Gemmill 46026]

If the reports of Shearer's wage demands are true, I think he's taking the piss ever so slightly.

[The Fish 10963]

If the reports of Shearer's wage demands are true, I think he's taking the piss ever so slightly.

 

 

the reports have changed from they#re close to an agreement, Ashley is looking to sell, we've got a buyer lined up and it'll take a week, we've got two buyers scrapping it out, we've got two buyers and it'll take a month, we've got no buyers, we've got aliens in Stanley and Slaley Hall is nice...

 

I'll believe it when I see it on Jimbo's tele

[NJS 4411]

If the reports of Shearer's wage demands are true, I think he's taking the piss ever so slightly.

 

 

About the same as Moyes' new deal I think - of course you could argue that Moyes has already proved himself but Shearer would probably use the big name/ST sales argument.