Good crowds help Moat’s takeover bid.
Posted on September 9th, 2009 | 24 Comments |
According to a recent article in The Journal, Moat’s original business plan was based on the Toon attracting 25,000 for home games. I have no idea how The Journal knows that but if we assume it’s true for a minute then the 15,000 additional fans we’ve been attracting could provide leverage for Moat in his negotiations with Barclays about the overdraft.
To be honest, I still wonder what the actual cost of the club will be to Moat or any other potential buyer. We know Ashley’s asking £100m and it has been suggested that the club has drawn £20m on it’s £40m overdraft facility but it’s still not clear to me what happens about the £100m Ashley loaned to the club to clear the debts.
Back in January an accounts boffin – a lecturer in finance at Newcastle’s business school – said:
“Newcastle is continuing as a going concern and that is largely based on a £100m loan that has been paid in by Mike Ashley, on which no interest is being charged.
“That would be payable on demand if the control of the club was to change. So, any would-be buyer, as well as paying the asking price for the club, would have to secure a re-financing deal to ensure the on-going commercial viability of Newcastle United.”
There have been rumours that Ashley is asking £100m ‘all-in’ but I’d be very surprised indeed if he’s prepared to write off the £100m loan because, let’s face it, that’s an awful lot of money even to a billionaire. This concerns me because any new owner could be saddled with that debt for quite some time and it could have significant repercussions for the rebuilding of the club. Of course I’m just speculating – maybe Ashley is indeed writing that loan off entirely.
The Journal’s article goes on to suggest that – contrary to Rob Lee’s recent comments – it’s quite possible that Shearer and Ashley could find a way to work together. Shearer has maintained a dignified silence about things for the most part and that might keep his options open. Whether or not Shearer is the right man for the job is of course an issue in itself and it’s one that seems to divide fans at the moment.
Apparently talks between Moat and Ashley are still ongoing, although media outlets aren’t in agreement as to what’s causing the delays. Some suggest it’s Moat’s negotiations with Barclays about the overdraft; others suggest the overdraft’s already sorted out and the delays are down to negotiations about how Moat will pay the £100m Ashley’s asking for the club, which won’t be paid in one lump sum because Moat simply can’t afford to.
Well, whatever!
NUFCBlog Author: Hugh de Payen
I'm a baby-boomer of the punk rock persuasion, currently exiled in Somerset for crimes committed in a previous life where locals keep trying to poison me with something called 'scrumpy'. Hates sprouts, coat-hangers, Cilla Black, ornaments, Steven Seagull movies and 50 Cent (he's not worth 10).
Hugh de Payen has written 634 articles on this blog.
Morning Hugh. Wonder what would happen if Shearer is appointed once his mate has taken over and our winning streak comes to an end due to dressing room unrest. Would be interesting to hear people’s views on that.