Since 2017 the current owner Mike Ashley has the historical English football club for sale and the recent devaluation of the entire scenario of worldwide football as a consequence of the pandemic has originated the needed price reduction that should now allow the Saudi Arabian prince to advance onto the purchase of the club.
A TRULY SURPRISING DEAL
The current owner Mike Ashley – that is also the owner of the sports goods’ retail chain Sports Direct – bought the club about 13 years ago (in 2007) by 155 million euros. But Ashley had been trying to sell his position at the club for quite some time, trying to secure a high amount of money that would allow him to come out of this deal with an extraordinary profit.
According to the British newspaper Telegraph, the deal between the current owner and the Arabian prince was being considered by around 390 million euros, but this new worldwide crisis caused by the coronavirus hurried Mike Ashley to accept a lower offer that should allow him to earn 344 million euros.
That way, Ashley should get rid of the club for a price that more than doubles the investment he made when he bought it. With this sale, 80% of the club will be given to the new owner from Saudi Arabia, while 10% will stay on the financial agency that will be the “middleman” for this deal – Amanda Staveley – and other 10% on the possession of the Reuben brothers, who are members of a powerful British family with a net worth valued at 18 billion pounds.
BREATH OF FRESH AIR FOR A CLUB THAT ALREADY HAD BETTER DAYS
With this change of owner and probable increase of investment in the next couple of years, Newcastle United is expected to be able to return to the top half of the standings in the Premier League, just like they were during several decades.
Since Mike Ashley arrived at the club in 2007, Newcastle was relegated to the Championship on two occasions and, although they’ve managed to return on both occasions, the truth is that these days they are a team that is more focused on fighting to avoid relegation on each season rather than fighting for the European spots.
But with the sheik Mohamed bin Salman in charge, it is likely that the investment will be very high in the next couple of years in the sense of offering the club a better competitive ability to get in the way of the top clubs of English football within a couple of years.
"I'm excited for #NUFC fans."🙌
"I played against the team in the late nineties. That place was unbelievable."
— talkSPORT (@talkSPORT) April 15, 2020
This season, Newcastle has been making a very safe campaign having gotten 35 points conquered in 29 rounds, that way occupying the 13th place of the standings with an important advantage of 8 points over the relegation zone that should allow them to stay safe from a potential relegation.
Also because of that, this is an excellent “timing” for the club to change hands. With their stay in the Premier League practically ensured and a modest roster, but that’s balanced, the club’s new owner might have the necessary stability to start his operation of financial strengthening that could elevate the club until new levels in the next couple of years.
TAKING ADVANTAGE OF THE CONTINGENCES
This is a particularly delicate period in every sector of the worldwide economy and football is no exception. And this is the kind of moment where the multimillionaires – even losing some of their net worth on the equation – tend to think about making heavy investments at a time where prices tend to drop momentarily in general.
On Newcastle’s case, that should be bought by a value around 12% lower than their previous evaluation is a perfect indication of that, with the prince from Saudi Arabia advancing towards the purchase at a time where he stands to save about 46 million euros.
Newcastle was a reference club in the beginning of English football, having won 4 English league titles until 1927, besides 6 FA Cups between 1910 and 1955. Still, the club has been losing historical and competitive dimension as time goes by.
Their most recent titles were won in 2010 and 2017 when the club won the Championship to return to the Premier League, and that says a lot about the loss of dimension of a club that might now recover some of that old magic with the likely money injection that will come with the help of Mohamed bin Salman.