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Newcastle Utd (and Viz)

All I know is if there is squabbling in the background for x amount of a 300 million takeover then the geordies might be in for a rude awakening on how much money will be pumped in to the club. Yes no one likes to pay more than necessary and that could then be used for investment later, but even if this is to pay Staveley's share it raises serious questions, starting with why didn't the Saudis deal directly with Ashley and buy 100%.
 
Foot Long Hot Dog said:
Only why does a Saudi consortium need to take on a £150m debt?

Makes no sense, neither does Staveley taking 10%, as they could have easily just paid her a fee separate to the purchase price.

It might genuine, but something about it just reeks to me, not least the time it’s taken them to conclude it, they’ve been on with this for nearly 2 years. Not generally how Saudis tend to operate, they’re not known for their procrastination when it comes to investments.
Click to expand...

The Saudis as we know don't want 150m debt and you can be under no doubt they won't have it. It is Stavely's companies who will be responsible for servicing all the debt not the sovereign wealth fund PCP Capital.

The Saudi's are wealthy beyond the normal meaning of the word and could have bought them many times over without blinking, that's not in doubt. Stavely had been in contact with failed consortiums before, knew the pitfalls and objections and an approach that might work.

For all their wealth PCP Capital wouldn't want to overpay or be exploited, the fund exists to buy assets and increase the value of the fund. £380m may well have been deemed to be overpriced and 300m or a lot lower more realistic. Stavely would have known whether any offer would have had any real chance of success and framed the deal whereby Ashley would recoup a great deal of his original asking price but in order to do this facilitated a loan to her companies not PCP Capital.

Stavely could easily have insisted on a piece of the consortium for negotiating such a complex deal. PCP who would recognize a great opportunity and knowing only 51% is actually needed for full control could have been persuaded.

All of this is speculation, as we would never know the details of how such a deal came together but there will be reasons. By Newcastle's standards this deal has been kept under wraps pretty well with no real details coming out until a month or two ago. Which amidst the constant speculation, rumour and leaks of the other failed bids is stark (it is relative as there has always been a constant rumour mill about Newcastle and understandably so given their recent failed takeover history), it does have far more of a feeling of genuine and solid to me.
 
So the debt being for the loan to Stavely's companies and not the consortium - although all the legalities would be part of the deal, would satisfy all parties. It would be a facility to get Ashley onside and recoup virtually all of his asking price, Stavely with fees charged and a piece of the action may have deemed it worthwhile as her companies would have extra capital to invest elsewhere and perhaps make a lot more than the interest charged.
 

Chris O'Connor said:
The Saudis as we know don't want 150m debt and you can be under no doubt they won't have it. It is Stavely's companies who will be responsible for servicing all the debt not the sovereign wealth fund PCP Capital.

The Saudi's are wealthy beyond the normal meaning of the word and could have bought them many times over without blinking, that's not in doubt. Stavely had been in contact with failed consortiums before, knew the pitfalls and objections and an approach that might work.

For all their wealth PCP Capital wouldn't want to overpay or be exploited, the fund exists to buy assets and increase the value of the fund. £380m may well have been deemed to be overpriced and 300m or a lot lower more realistic. Stavely would have known whether any offer would have had any real chance of success and framed the deal whereby Ashley would recoup a great deal of his original asking price but in order to do this facilitated a loan to her companies not PCP Capital.

Stavely could easily have insisted on a piece of the consortium for negotiating such a complex deal. PCP who would recognize a great opportunity and knowing only 51% is actually needed for full control could have been persuaded.

All of this is speculation, as we would never know the details of how such a deal came together but there will be reasons. By Newcastle's standards this deal has been kept under wraps pretty well with no real details coming out until a month or two ago. Which amidst the constant speculation, rumour and leaks of the other failed bids is stark (it is relative as there has always been a constant rumour mill about Newcastle and understandably so given their recent failed takeover history), it does have far more of a feeling of genuine and solid to me.
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Why does Staveley need £150m? And what is she going to service the debt with?

What’s complex about buying a football club that’s for sale? How much is it Mike? I’m just not having it, something isn’t right with this deal.
 
Foot Long Hot Dog said:
Why does Staveley need £150m? And what is she going to service the debt with?

What’s complex about buying a football club that’s for sale? How much is it Mike? I’m just not having it, something isn’t right with this deal.
Click to expand...

These must be questions unanswered as I couldn't possibly know the answers only someone with the inside knowledge of her many business dealings I.e. Amanda Stavely and her advisors, could provide you such detail.

The complexities of buying such a football club are well documented , Mike Ashley wanting more than others estimate it's worth being primary amongst them.

It's never as straight forward as just name your price and someone will buy anyway when he overprices it. He has always said he wants out (but on his terms, which are often extortionate). Its easy to simplify but life and business rarely are that simple.
 
So you sell something you own for 300 mill, lending the buyer 150mill....
So I can walk into asda spend £100 on shopping and they'll pay 50 of that to be paid back in installments right?
Used to work for sports direct and met Mike Ashley, he's no mug. When his assistant had a nose bleed in the store he went and bought 3 of the own brand shirts to make sure the money went back through his till....
This deal stinks, also if you have to borrow half the asking price how can you possibly afford to buy players and pay decent wages?
 

f.t.r.s said:
So you sell something you own for 300 mill, lending the buyer 150mill....
So I can walk into asda spend £100 on shopping and they'll pay 50 of that to be paid back in installments right?
Used to work for sports direct and met Mike Ashley, he's no mug. When his assistant had a nose bleed in the store he went and bought 3 of the own brand shirts to make sure the money went back through his till....
This deal stinks, also if you have to borrow half the asking price how can you possibly afford to buy players and pay decent wages?
Click to expand...

The Saudis won't have borrowed a penny, it's a facilitator to get the deal done. If the Saudi investment fund doesn't want to go over 240m and Ashley asks 380m then some work by a facilitator like Stavely's PCP has to make a deal happen.

She knew falling well short of tge asking price would get nowhere, the Saudi's wanted full control, so a deal may have been hatched but its Stavely's companies who will device the loan.
 
Chris O'Connor said:
These must be questions unanswered as I couldn't possibly know the answers only someone with the inside knowledge of her many business dealings I.e. Amanda Stavely and her advisors, could provide you such detail.

The complexities of buying such a football club are well documented , Mike Ashley wanting more than others estimate it's worth being primary amongst them.

It's never as straight forward as just name your price and someone will buy anyway when he overprices it. He has always said he wants out (but on his terms, which are often extortionate). Its easy to simplify but life and business rarely are that simple.
Click to expand...
I was being glib, off course there’d be a negotiation over price, but it doesn’t explain why the Saudis want Staveley on board with a 10% stake.

Let me explain. If they’re genuinely going to invest huge sums into the club, then in doing so they’ll increase its value over time. Staveley hasn’t got the means to form part of any huge investment, and yet her stake would increase in value off the back of Saudi investment cash. Say they made it into a £2BN club, her stake would have grown to a value of £200m, it just doesn’t happen.
 

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