Newcastle Are Not For Sale

andy wrote...

Luke - as a southern lad you must know a few investment bankers. Ask a 100 investment bankers what it means if someone says they are looking for investment - they are sellers will be the response. The conversation goes like this:

MA 'im looking for some investment, £60m gets you 25%'

Would be investor 'if i am to invest that much i would like control'

MA ' Well that would be £240m'

Investor 'Here's the cheque fat boy'

MA to fans 'It was too good to turn down, im doing this for the good of the club.

So Luke this is the deal - the following 5 statements in city speak all mean the same:

1. Looking for investment
2. Reviewing strategic options
3. Wanting partners
4. Considering whats best for the club
5. Sell and get me the hell out of here

Source: Beginners guide to corporate Finance.

I'm sorry Luke - the speculation is not at an end it's only just started. I live and work in the city, it's an open secret MA wants out. I just dont understand why some in the NE dont want to see this. Maybe its the underlying fear that they have been legged over and bought into this siting with the fans and buying a round on the Quayside.

Note From Luke
Andy, I know a few people who rhyme with merchant banker! On a serious note, the city has been the "source" for these Ashley sell up rumours from day one. But the man himself seemed pretty categoric in his denial yesterday - the first time he has had the opportunity to put the record straight. As I've said time and time again, he is a businessman and he will sell if the deal makes sense in terms of profit. The same is true of every single owner of a Premier League with the possible exception of Steve Gibson at Middlesbrough who is a fan first, owner second.

Posted by: andy  | July 11, 2008 12:10 AM

Dave B wrote...

Hi Luke - Good article although I concede I'm worried that the concepts of looking for investment and new signings don't exactly tally.

I think you're spot on when you predict peace and quiet as it's becoming clear to all that MA favors the option of a leaner, hungrier squad.

I'd say the only way NUFC will buy a player for £10m is if they can sell him for £20m - hence the focus on youth.

A great idea in principal but a real swine to pull off in practice.

Posted by: Dave B  | July 11, 2008 8:38 AM

JC wrote...

I read those comments with interest from Ashley. Glad to hear we're not being sold to the Bin Ladens but am I the only one who remains sceptical? Let us not forget that when questioned the New York company stated that they were asked if they were interested in purchasing Newcastle....that's purchasing NOT investing! Then we have the complete lack of transfer activity, the culling of the high earners. If Mike Ashley is here with a five year plan he has to make some sort of statement of intent, buying good young players gives us hope for the future but do any of us want to see Newcastle bumming around mid table for the next three years??? I for one do not, we are a huge club, as big as Spurs and certainly bigger than anyone outside them and the top four, yet we seem to be targetting players Bolton would be after! A few positive words from Ashley does not mask the poor position we presently find ourselves in

Posted by: JC  | July 11, 2008 9:24 AM

Paul Patterson wrote...

You can balance the books and look for investment as much as you like, but if Newcastle United don’t sign anyone else of note before the FIRST game of the season (Not the closing of the transfer window) then the season will be off to another false start and therefore another wasted ‘transitional’ season will be underway.

Kevin Keegan said back in April, that the club needs around 5 players, well we’ve shipped Emre, Carr, Rozehnal and are looking to ferry Ameobi so how many does that mean we need? 8?, 9?, 10?.

I really hope Spiderman proves to be the find he appears, but that still leaves problems at centre back, centre midfield and centre forward, and I’m not too happy with the lack of cover at full back neither.

We have a great conveyor belt of goalkeepers (Given, Harper, Krul and Forster) so that’s at least one position we can forget about completely and concentrate on finding help for Enrique and Habib Beye at full back.

Plus we need to sort the Joseph Barton situation out. I’m not overtly fond of the idea of Butt and Geremi taking the side into next season as an engine room, mainly because I’m not convinced about either’s ability to do it for 38 league games non-stop.
A younger, attacking, box-to-box player is vital, one that can get 10 goals a season, (Oh Robert Lee and Gary Speed where are you?) Then it just remains to get that vital centre half in, preferably one that scores goals as well.

I’m pleased Ashley has finally come out and said what he plans to do, but I can’t see any worthwhile businessman, putting up investment, to have no say on what that investment goes on. I’m happy to see him explore this, but in the next two weeks, we need a couple of signings, so that the majority of the transfer work is done before we get into the back end of the pre-season games.

I really don’t want to get through these games and then through a bulk of Augusts league games and then go out and panic buy, because Mr Ashley, that will cost you far more than buying players now will.

Paul.

Posted by: Paul Patterson  | July 11, 2008 10:12 AM

Brian Siller wrote...

"Several exciting new arrivals are anticipated by supporters, but they will also want to see an end to all of the negative publicity which has surrounded the club once again. Stories of takeovers, rows, political intrigue and possible sackings have been all too common over the last nine months."

I hadn't realised the full extent of your psychic powers, Luke, but your analysis following the Everton game at the end of last season was spot-on.

With the news that Mike Ashley is seeking a co-investor in the club, it is beginning to look as if Mike Ashley has drawn a line under his current level of investment in NUFC. If he is seeking additional investors in the club, does that mean that he is treating the club as he has some of his "Brand Name" acquisitions in the past. (ie "milk the brand for cash")

I don't have any (never mind many) millions in the bank; but if i did, i wouldn't be all that willing to invest it in NUFC under Ashley's overall control. If he told me he was still "in it for the long haul", i would have no immediate prospect of an assured return on my money. Even if he told me there was an "exit strategy" in 3 years time, it would a) still be a risky investment, and b) create future uncertainty for the club.

The squad as it stands is wafer thin, and lacks the quality of even recent years. The lack of players with the ability to "unlock" defences, and the lack of depth in defence are particularly pressing.

If Owen's contract is not renewed before the end of August, then bluntly we must sell him, to avoid losing him on a free at the end of the season.

All in all, it's not a happy picture.

Posted by: Brian Siller  | July 11, 2008 10:31 AM

Mike Ashburn wrote...

As you say,in a very well opined nutshell,"That's all we wanted to hear."
As far as stopping the rumour-mill that
surrounds SJP,well,a certain king Canute tried and failed with the same set of circumstances.
It,unfortunately,remains part and parcel of one's life,as soon as that black and white shirt is pulled on in earnest.
By the way,did you see the interview with Mr.Kilcline on Look North earlier this week?
He made the same point,only with a lot less subtlety;a bit like the way he played actually(very basic,but neccessary at the time).

Posted by: Mike Ashburn  | July 11, 2008 10:57 AM

Halfmanhalfkeebab wrote...

On a serious note, I felt quite insulted when that children's comic, the Sun printed a picture of Osama Bin Laden wearing a Toon top. Obviously the story was a pile of excrement but for me they crossed a significantly sensitive line in associating our club with a man who (allegedly) is responsible for the deaths of thousands and is representative of the reasons why we have troops in Afghanistan being blown to kingdom come every five minutes! It was not only an insult to Newcastle United but made light of a man who is despised by the many who have lost friends & family as a result of the 'war' on terrorism. But then again, when has the Sun ever had any interest in people’s feelings or the truth? Remember Hillsborough?

Posted by: Halfmanhalfkeebab  | July 11, 2008 11:28 AM

Dan wrote...

Spot on Luke, although i don't think the investment will come in quick enough to release extra funds this summer, or at least before the PL kicks off. The best thing is he came out saying he hates Spurs. Now he does belong in Newcastle!

Posted by: Dan  | July 11, 2008 1:20 PM

magpiemarky wrote...

I for one is fed up to the back teeth of reading this ket,i'm not bothered about the hard end of business,i just want to see the team strengthened,i've waited patiently[people keep calling for patience]but nobody can deny it's going at a snails pace

Posted by: magpiemarky  | July 11, 2008 1:32 PM

sebastian wrote...

Seems to me that whatever clarifications he gives the truth is that Ashley's wallet is now closed as far as NUFC are concerned. And who would blame him! Currently the Toon have a squad of players who underperform and a manager about whom anybody rational (which does not include the fanatics) has concerns over. The Ashley wallet might open and perhaps even one or two other investors will be found if KK can mount a decent campaign this time around. However I suspect we will see a bad start (as usual) followed by a spluttering struggle to get out of the bottom third.
The saddest NUFC event in a long time has been fail this summer by NUFC to take a clear stand over Barton and them not kicking that thug off the B&W payroll. That is the truest statement of Ashley's commitment and that indicates his concern over money matters is greater than his concern about the team.

Wonder whether KK would have taken the job if he knew what he knows now.

Posted by: sebastian  | July 11, 2008 2:58 PM

dave wrote...

We've got 2 in already, 1 for the first team and 1 squad filler like jeffrey, huckerby, mathie etc remember those types too? Lets have some positive talk for once. What a bunch of moaning whingers there are on here. The season is a month away and the window close in @7 weeks, plenty of time and no doubt lots being done behind the scenes. Let them get on with it - professionally at last!

Posted by: dave  | July 11, 2008 11:08 PM

jac mills wrote...

Luke

Hate to be negative, but MA still sounds like a man ready and willing to sell. All he needs is a comfortable exit, and he'll get it if he first puts right a few problems at the club, such as trimming player salaries, for one. (Hasn't he started that already with Michael Owen?) Maybe MA should not be in the "football club" business, anyway. I can only go on what I read, but he just does not seem comfortable as a businessman with long-term goals at NUFC. I could be, and probably am, way off the mark, but as you have pointed out more than once, his lack of communication lately has not helped, giving way to speculation. Is that the sign of a positive, comfortable leader?

Posted by: jac mills  | July 12, 2008 1:41 PM

Michael wrote...

Luke,

I'd like to make a few quick points;

1. Firstly it is a definate change in tak between full ownership and looking for investors and a path that generally leads to one thing
2. Ashley first love is always money and he wants more of it lke most peolpe but the fact up until a year ago had no ties to Newcastle would make any reasonable man think this could be nothing more that a rich mans current hobby/ play thing
3. I beilieve the comment about the Bin Laden link was insensative and ignorant. A man of at the top of NUFC, refering to taking investment from Bin Ladens brothers company as looking in caves in Afghanistan for investment, despite the fact that the company and family have long since cut ties with the infamous brother and long since had to deal with thick uneducated unknowledgeable loosers making such cheap comments. It kind of fits at NUFC at the minute Ashley, Wise and Barton seem to sum up the way NUFC is going.
4. I believe if the last year is anything to go by in how he runs the club from my prespective (Sunderland fan) long may he continue as the captain of HMS Newcastle United. As he is providing the final touches of transforming NUFC from most peoples second favourite club to least favourite while dragging your good name through the mud.
5. On a slightly different note I really hope Keegan stands by Barton and maybe even next season Barton could get to captain the club. You'll be able to hear the laughs from the Stadium of Light as far away as Wises plush pad in London.

Regards
A very amused Sunderland fan

PS Looking forward to reading your articles on Sunderland soon but these are almost just as fun

Note From Luke
Now now Michael, play nicely!

Posted by: Michael  | July 14, 2008 2:12 PM