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| Who would buy Newcastle United? | Who would buy Newcastle United? |
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| Analysis By Bill Wilson Business reporter, BBC News Mike Ashley took control of Newcastle in May 2007Newcastle United owner Mike Ashley has discovered that in today's Premier League it is not enough to be an ordinary billionaire owner, you have to be a multi-billionaire. | |
| Mr Ashley, who made his money through his Sports Direct retail empire, went from recluse to beer-drinking "man-of-the-people" and now it seems, recluse again, in the face of Geordie fan fury at Kevin Keegan's going. | Mr Ashley, who made his money through his Sports Direct retail empire, went from recluse to beer-drinking "man-of-the-people" and now it seems, recluse again, in the face of Geordie fan fury at Kevin Keegan's going. |
| Expectations of big spending are always high in Newcastle, but not any more so than at the likes of Liverpool - where fans are also calling for funding to compete financially with the Manchester clubs and Chelsea. | Expectations of big spending are always high in Newcastle, but not any more so than at the likes of Liverpool - where fans are also calling for funding to compete financially with the Manchester clubs and Chelsea. |
| Mr Ashley - who bought the club for £134m in May 2007 - had been offering to bankroll the club to the tune of £20m a year. | Mr Ashley - who bought the club for £134m in May 2007 - had been offering to bankroll the club to the tune of £20m a year. |
| In his emotional statement putting the club up for sale he also said he had paid off £100m of debt and was still paying the debt. | In his emotional statement putting the club up for sale he also said he had paid off £100m of debt and was still paying the debt. |
| 'Going nowhere' | 'Going nowhere' |
| However the 43-year-old admitted in a club magazine article that he did not carry out due diligence on the club and its debts before his takeover, which was completed in just five days. | |
| When he did look at the books - of a club which had net debts of £70m in 2007 - he found that it owed £27m in transfers and had taken its major sponsorship payments upfront rather than in instalments. | When he did look at the books - of a club which had net debts of £70m in 2007 - he found that it owed £27m in transfers and had taken its major sponsorship payments upfront rather than in instalments. |
| I knew the club would cost me money every year. I have always backed the club with money Mike Ashley Mike Ashley statement | I knew the club would cost me money every year. I have always backed the club with money Mike Ashley Mike Ashley statement |
| "He bought a club that was financially going nowhere, with debts increasing as player transfers had built up, and money was owed to other clubs in lieu of those transfers," says Vinay Bedi, a soccer analysts at stockbrokers Brewin Dolphin in Newcastle. | "He bought a club that was financially going nowhere, with debts increasing as player transfers had built up, and money was owed to other clubs in lieu of those transfers," says Vinay Bedi, a soccer analysts at stockbrokers Brewin Dolphin in Newcastle. |
| "It was a difficult situation - it was hard to see how the club could be turned round quickly without a huge injection of cash. | "It was a difficult situation - it was hard to see how the club could be turned round quickly without a huge injection of cash. |
| "He is saying he is putting in £20m a year, but that is totally unrealistic when there is the ongoing debt." | "He is saying he is putting in £20m a year, but that is totally unrealistic when there is the ongoing debt." |
| As Mr Bedi observes: "You really have to be a multi-billionaire to buy a Premier League club these days - for the purchase, clearing the debts, and moving the club forward." | As Mr Bedi observes: "You really have to be a multi-billionaire to buy a Premier League club these days - for the purchase, clearing the debts, and moving the club forward." |
| Current value | Current value |
| Despite accruing cash from match day revenues, commercial deals, and TV revenues, the latter dropped by £16m for Newcastle between 2003 and 2007, and turnover was also down. | Despite accruing cash from match day revenues, commercial deals, and TV revenues, the latter dropped by £16m for Newcastle between 2003 and 2007, and turnover was also down. |
| Potential money spinner - St James's Park, home of Newcastle United | Potential money spinner - St James's Park, home of Newcastle United |
| The club is now looking for its eighth manager in 10 years - a debilitating cycle of regular payoffs to the axed managers, and with every new incumbent demanding a sizeable transfer kitty to bring their own players into St James' Park. | |
| Mr Bedi says: "I would not say Newcastle United's value is more than £250m, maybe up to £300m, depending on how the debt is positioned now". | Mr Bedi says: "I would not say Newcastle United's value is more than £250m, maybe up to £300m, depending on how the debt is positioned now". |
| So, who would want to buy such a club, which has made a habit of limping from crisis to crisis? | So, who would want to buy such a club, which has made a habit of limping from crisis to crisis? |
| Quite a few is seems. Even loaded with debt, the club is still a potentially attractive proposition and has been linked to a number of potential suitors at home and abroad. | Quite a few is seems. Even loaded with debt, the club is still a potentially attractive proposition and has been linked to a number of potential suitors at home and abroad. |
| When you look at the opportunities to owners from merchandising, commercial opportunities, match day income and the TV money, then Newcastle United is a very attractive proposition Alex Fynn, football business consultant | When you look at the opportunities to owners from merchandising, commercial opportunities, match day income and the TV money, then Newcastle United is a very attractive proposition Alex Fynn, football business consultant |
| The club has been linked with Dubai International Capital, who were leading the race to buy Liverpool until they were bought by Tom Hicks and George Gillette . | The club has been linked with Dubai International Capital, who were leading the race to buy Liverpool until they were bought by Tom Hicks and George Gillette . |
| Members of Mr Ashley's hierarchy were reported to be in Dubai over the weekend. | Members of Mr Ashley's hierarchy were reported to be in Dubai over the weekend. |
| Another potential buyer is said to be Chinese property billionaire Xu Rongmao - chairman of Shimao Group - who is reported to have plans to expand St James' Park and the surrounding city centre area. | Another potential buyer is said to be Chinese property billionaire Xu Rongmao - chairman of Shimao Group - who is reported to have plans to expand St James' Park and the surrounding city centre area. |
| A group of North-East businessmen are also said to be examining the possibility of buying Mr Ashley out. | A group of North-East businessmen are also said to be examining the possibility of buying Mr Ashley out. |
| Fan ownership? | Fan ownership? |
| Some fans have launched a Save Newcastle website, which "proposes a serious discussion about the issue of fan ownership of the club". | Some fans have launched a Save Newcastle website, which "proposes a serious discussion about the issue of fan ownership of the club". |
| They have launched a website in the past week, which does not want to go down the path of billionaire or oversees ownership. | They have launched a website in the past week, which does not want to go down the path of billionaire or oversees ownership. |
| Fans protested at the weekend over Kevin Keegan's departure | Fans protested at the weekend over Kevin Keegan's departure |
| Group co-ordinator Peter Williams, says: "The reason I started the website was because I believe and have believed for a long time that fan ownership would provide Newcastle United with the stability that it has so desperately lacked for so long. | Group co-ordinator Peter Williams, says: "The reason I started the website was because I believe and have believed for a long time that fan ownership would provide Newcastle United with the stability that it has so desperately lacked for so long. |
| "Newcastle has one of the largest fan bases in England but has consistently preformed at a level below teams with much smaller fan bases. I think this is largely due to the instability that the previous owners have brought to the club." | "Newcastle has one of the largest fan bases in England but has consistently preformed at a level below teams with much smaller fan bases. I think this is largely due to the instability that the previous owners have brought to the club." |
| 'Pure profit' | 'Pure profit' |
| Meanwhile Alex Fynn, a football consultant who has worked with a number of Premier League clubs, is clear about the commercial and other attractions of Newcastle United to a potential billionaire buyer. | Meanwhile Alex Fynn, a football consultant who has worked with a number of Premier League clubs, is clear about the commercial and other attractions of Newcastle United to a potential billionaire buyer. |
| He says: "It is the attraction of the TV deal, with the realisation that top level football in England is something different from other countries - England has the biggest domestic TV football deal in the world." | He says: "It is the attraction of the TV deal, with the realisation that top level football in England is something different from other countries - England has the biggest domestic TV football deal in the world." |
| Newcastle United: "Mid table team but top of table support" | Newcastle United: "Mid table team but top of table support" |
| Mr Fynn said the current TV deal, which includes the domestic agreements with Setanta and Sky as well as overseas deals, is worth £2.7bn. | Mr Fynn said the current TV deal, which includes the domestic agreements with Setanta and Sky as well as overseas deals, is worth £2.7bn. |
| "That is pure profit, money that goes straight to the bottom line," he says. | "That is pure profit, money that goes straight to the bottom line," he says. |
| "The deals also mean that Premier League football is broadcast in over 200 countries worldwide, which can give you a great profile - either personally or for your company." | "The deals also mean that Premier League football is broadcast in over 200 countries worldwide, which can give you a great profile - either personally or for your company." |
| 'Attractive proposition' | 'Attractive proposition' |
| Mr Fynn said that another attraction to buyers was that regulation in England regarding the takeover of sports clubs was "much more lax" than elsewhere. | Mr Fynn said that another attraction to buyers was that regulation in England regarding the takeover of sports clubs was "much more lax" than elsewhere. |
| "It is much more open to come in and take over a football club. Newcastle United, despite their troubled history, will offer potential to any investor who wants to get involved, because of the those reasons," he says. | "It is much more open to come in and take over a football club. Newcastle United, despite their troubled history, will offer potential to any investor who wants to get involved, because of the those reasons," he says. |
| "It is a middle of the table football club in terms of playing performance, but top of the table in terms of support. | "It is a middle of the table football club in terms of playing performance, but top of the table in terms of support. |
| "When you look at the opportunities to owners from merchandising, commercial opportunities, match day income and the TV money, then Newcastle United is a very attractive proposition." | "When you look at the opportunities to owners from merchandising, commercial opportunities, match day income and the TV money, then Newcastle United is a very attractive proposition." |
| Meanwhile those loyal fans are hoping that some much-needed stability will be arriving in the club boardroom in the coming weeks. | Meanwhile those loyal fans are hoping that some much-needed stability will be arriving in the club boardroom in the coming weeks. |