Newcastle United: Ashley agrees £300m takeover deal

Ashley's 13-year reign on Tyneside is close to an end. The 31-page document confirming £300m takeover of Newcastle is happening.

Newcastle United Ashley agrees £300m takeover deal

Newcastle United FC owner Mike Ashley is in talks with a London advisory firm as documents show owner Mike Ashley has entered into a charge agreement with potential buyer Amanda Staveley.

Newcastle United Takeover Deal

A 31-page ‘registration of charge’ document has been filed with Companies House with PCP Capital Group of Amanda Staveley, and St James’ Holdings company of Mike Ashley, being concerned parties.

PCP Capital Partners is a small Mayfair financial advisory firm and is run by Staveley. The firm has been instrumental in many deals, including sheikh Mansour’s £210 million ($412m AUD) takeover of Manchester City in 2008.

Financier Staveley is leading a bid which involves Saudi Arabia’s ‘Sovereign Wealth Fund’ and the Reuben Brothers. It is understood to be worth £300m.

The Premier League have also been informed of this potential deal and are understood to prepare for the process of carrying out checks under its owners and directors test.

It is reported that the Public Investment Fund would have 80% share of the club in the proposed deal, with a further 10% belonging to Staveley’s PCP Capital, and 10% to property developers the Reuben brothers.

The Daily Telegraph recently claimed a deal is near completion after the Premier League was informed a bid from a Saudi Arabian consortium.

Takeover deal fell through in 2017

Stavely’s interest in Newcastle dates back to 2017. However, she failed in a takeover bid in 2018 when she failed to meet Ashley’s asking price of £400 million ($785m AUD)

The latest documents show a charge registered to PCP Partners and Ashley’s St James’ Holdings, which is listed as the lender.

Shields Gazette report the document to suggest Ashley is “essentially helping to fund Staveley’s bid to purchase the club”.

The document shows that St James Holdings is agreeing to loan at least £150 million to Staveley’s company – a way of Ashley helping to fund a deal.

Newcastle United Situation, post Coronavirus Outbreak

Supporters seem disappointed about the club affairs, and have also criticised club’s approach during the coronavirus pandemic where the club has charged fans for next season’s season tickets.

The fans were not happy as Newcastle being one of three Premier League clubs to have placed their non-playing staff on furlough. Many of them have rolled back on their furlough decisions. No wonder, Mike Ashley decided to sell his stocks in the club in this uncertain time.