Newcastle

Takeover developments suggest troubling times ahead at Newcastle United

Newcastle United are entering into a tense period of their history and the stakes have never been greater. News broke on Tuesday that the takeover talks between Mike Ashley and Amanda Staveley had broken down. Sky Sports were the first to report the story, publishing the following quotes from a source close to the Magpies’ owner:

“It is only right to let the fans know that there is no deal on the table or even under discussion with Amanda Staveley and PCP.”

The source went on to say that the talks had ‘proved to be exhaustive, frustrating and a complete waste of time’. The reaction on social media was predictably a bad one, as many supporters stated that the same description could be used to discuss Mike Ashley’s ownership of the club.

It could be that the story is a cleverly released one by the Newcastle owner’s camp and brinkmanship on his part, but this is the latest of a long string of disappointing events for the club’s supporters. For them, it feels like the Sports Direct tycoon will never release his hold on the club.

A source close to PCP Capital Partners and Amanda Staveley was quick to address the story. Their side of the talks were keen to make it clear that the consortium had made a bid for Newcastle and that remains on the table.

“PCP Capital Partners made a carefully considered bid in November and it remains on the table.”

It is impossible to completely believe any story that has been leaked to the press during these takeover talks, as the media is a tool used to increase pressure on the opposite side. The takeover of Newcastle United was always likely to be a complex business deal that wouldn’t take place over night, despite Ashley’s optimistic Christmas deadline.

It could be that there are more twists and turns to come where the PCP bid is concerned. However, this story has to be taken at face value and supporters should be prepared for the worst-case scenario, which is Ashley remaining at the helm for the foreseeable future.

Why would no takeover be devastating for Newcastle?

Mike Ashley has been owner of the football club for over ten years and the club have been in the Premier League for the majority of those. Why would another few months of his ownership be a bad thing for Newcastle United?

Well, for Newcastle supporters and those that closely follow the club, that is a simple question to answer. Ashley suggested, during his interview with Sky Sports in August, that he was unable to compete with the rest of the Premier League financially and that, concerningly, the club bank was running on empty.

“So people outside of football looking in sometimes think that’s how much you have in the bank, I must make it crystal clear that I am not wealthy enough in football now to compete with the likes of Man City etcetera, not just Man City. It’s basically a wealthy individual taking on the equivalent of a country. I cannot, and will not. “

The namedrop of Manchester City was interesting at the time, as nobody was expecting Mike Ashley to compete with the club funded by oligarchs. However, the sobering fact for Newcastle fans is that their club (£38.07 million) have spent less than both Huddersfield Town (£51.08 million) and Brighton (£42.84 million) since the three clubs were promoted last season.

Against Swansea City at the weekend, the Magpies started the match with eleven of the players that had been at the club last season in the Championship. Mike Ashley has refused to provide the finances required to grow the team to the next level and their precarious position in the Premier League is a reflection of that.

A third relegation in the Ashley tenure is a real possibility without investment this month. As yet, that hasn’t been forthcoming and, judging by his actions during the last 12 months, few supporters are expecting it.

That could lead to further conflict with manager Rafa Benitez. The Newcastle boss has been very public about his desire for more players. The Spaniard is aware of his very powerful position at the club as he is the one person preventing the supporters from directing their anger at Mike Ashley.

If he isn’t given what he wants, he may consider walking away and that is a situation that the owner must avoid.

Benitez is both Ashley’s best asset and biggest threat. The manager has improved the atmosphere around the club and as long as he is in post, the supporters will believe that better times are ahead.

In addition to that, he is a world-class coach and capable of producing better results with an average squad. Newcastle are currently out of the relegation zone and considering the talent at his disposal, that is a huge achievement. However, if he was to leave his post, a crisis would quickly follow and it would be difficult to see the club maintaining their Premier League status.

The next few weeks and months promise to be crucial in determining the future of Newcastle United. There is nothing wrong with Mike Ashley walking away from talks with PCP and Amanda Staveley. If the deal wasn’t right and little progress was being made, his decision is understandable.

However, as the current owner of the club, it would be unforgivable not to invest before the transfer deadline. The squad isn’t good enough and needs an injection of quality. If that isn’t given, Benitez’s future would be cast into fresh doubt.

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