Mike Ashley’s controversial 13-year ownership of Newcastle could soon be over. A sale to a consortium fronted by the Yorkshire-born financier Amanda Staveley has been broadly agreed and documents lodged at Companies House last week provide concrete proof that advanced negotiations are well underway.
The paperwork suggests the deal – £310m, potentially rising to £340m – involves Ashley apparently loaning Staveley’s company PCP Capital Partners £150m in an attempt to get an agreement over the line. It is understood that in reality Staveley is taking on a £110m interest-free loan the retail tycoon had given Newcastle.
This complicated transaction features a £200m up-front payment from Staveley’s consortium followed by the additional £150m to be paid to Ashley over a period of up to five years. The Companies House papers create a legal scaffolding enabling the ownership handover to proceed through a transfer of shares.
Three years ago Newcastle’s owner dubbed Staveley a “time waster” following the collapse of an attempt to purchase the club but the new documents confirm she and Ashley have agreed a £13m deposit.
Staveley, who divides her time between Dubai and London, has been backed by the billionaire UK based Reuben Brothers, whose property empire features extensive interests in Newcastle, including the city’s racecourse, and Saudi Arabia’s Public Investment Fund. The latter is one of the world’s wealthiest sovereign wealth funds and the original plan involved PIF assuming an 80% stake in the club, Reuben Brothers 10% and PCP Capital the remainder.
Puzzlingly, and perhaps significantly, the Saudi investment is not mentioned in the Companies House documents made public on Tuesday, although the Reuben Brothers’ involvement is detailed. However it is understood PIF, whose role is likely to be the subject of not merely Premier League but government interest amid sportswashing and human rights concerns, remains part of the consortium. It is believed PIF intends to help fund urban regeneration on Tyneside.
Ashley bought Newcastle for £133m in 2007 but his willingness to transfer his subsequent £110m loan to Staveley to facilitate a sale was confirmed in a “registration of a charge” at Companies House. A charge is the security a company gives for a loan.
Newcastle’s owner has long been known for driving the hardest of bargains but the coronavirus induced economic downturn has spelt extremely bad news for his retail empire and he now seems keen to offload Newcastle. The club declined to comment on the latest developments.
The Premier League has received the necessary paperwork from both parties and is understood to now be initiating the mandatory “owners and directors” test. The ultimate transfer of power is contingent on both the governing body’s blessing and the finalisation of the deal’s small print.