Talks between Mike Ashley and PCP Capital Partners for a Newcastle United takeover are at an advanced stage, according to Sky Sports.
This would end Mike Ashley’s controversial 13-year spell on Tyneside.
PCP Capital in Talks for Newcastle United Takeover
Legal Framework Set
A legal document on companies’ house was published this morning. It appears to have laid down a legal framework for a deal to be struck. Amanda Staveley, who heads up the PCP Capital group, tried to buy the club in 2017 but the bid failed. Controversial United owner Mike Ashley called her a “timewaster” when the bid fell through.
Sky Sports reported at the time that Staveley wanted to include a relegation release clause in the deal. This would have forced Ashley to refund a substantial part of her investment if the Magpies got relegated.
Back in January of this year, Staveley’s PCP Capital Partners were again in talks to buy Newcastle, with the Saudi Public Investment Firm (PIF). It’s unclear why the PIF isn’t named in the new legal document.
The document has also led to claims that Ashley is lending PCP Capital money to help get the deal over the line. The Newcastle owner has always been willing to restructure payments to complete a deal.
A Controversial Reign Could Be Coming to an End
Ashley, who has been the CEO of Sports Direct since 1982, bought the Magpies back in 2007. It’s fair to say he isn’t popular amongst fans at St James’ Park. Supporters have constantly protested against the Walsall-born businessman in recent years, accusing him of not investing enough money into the club.
Between 2000 and 2007, the Magpies had enjoyed Premier League finishes as high as third, fourth, fifth and seventh. But the 55-year-old has overseen two relegations in his ownership, in 2009 and 2016. The highlight of his tenure was in 2012 when a Demba Ba and Pappis Cisse-inspired Newcastle team finished fifth under Alan Pardew.
Toon currently sit 13th in the top tier, eight points clear of the bottom three.
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