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Two serious bids in for the club


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From the FT:

 

Two US-based investors are left in the race to buy Mike Ashley’s Newcastle United, both of them believed to be already involved in sports management, according to people close to the situation.

 

Seymour Pierce, the retail entrepreneur’s financial adviser conducting the sale of the Premiership club, confirmed on Tuesday that the original field of seven potential bidders had been whittled down to two in recent days.

 

Mr Ashley, who put the club up for sale in the face of widespread disaffection among fans about his handling of the club and team management, has scaled down his expectations of a sale. Having invested £250m in the club, including paying off its debts, he now accepts that at best he could make only a small profit from a sale.

 

Insiders said he would not necessarily take the highest offer available, but agree a sale to an investor with the better financial credentials.

 

Keith Harris, chairman of Seymour Pierce, revealed the number of remaining bidders at the FT sports industry conference in London, but refused to divulge their identity. “We have two very serious contenders to buy it,” he said.

 

However, it is thought that both are following the trend of US sports investors buying into the Premier League, and believe the favourable exchange rate for the dollar makes the time ripe for taking on a sterling-based asset. The two are expected to begin due diligence shortly.

 

Interest in the Premier League from US sports franchise owners has seen the Glazer family buy up Manchester United; Tom Hicks and George Gillett take control of Liverpool; Randy Lerner take over Aston Villa; and Stan Kroenke acquire a sizeable stake in Arsenal and a seat on its board.

 

Mr Harris added that a sale would probably go through either by the end of the year or at the beginning of 2009. “It is not easy doing anything in this world, whether it’s selling a football club or anything else, but it will come through,” he said.

 

Issues that could influence a sale include the club’s risk of relegation – it is lying in 14th position – and the January transfer window, in which any new owner would probably want to be involved.

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To be fair to Ashley, I know he's after the money but he also said he wouldn't just sell to anyone. If the Nigerian bid looks a bit dodgy (I'm certainly not convinced by them) then I wouldn't be touching them with a barge pole either.

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To be fair to Ashley, I know he's after the money but he also said he wouldn't just sell to anyone. If the Nigerian bid looks a bit dodgy (I'm certainly not convinced by them) then I wouldn't be touching them with a barge pole either.

 

He means he'll only sell to people who can guarantee to pay him his money, after he sells he won't give a fuck if they haven't got two pennies to rub together.

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To be fair to Ashley, I know he's after the money but he also said he wouldn't just sell to anyone. If the Nigerian bid looks a bit dodgy (I'm certainly not convinced by them) then I wouldn't be touching them with a barge pole either.

 

He means he'll only sell to people who can guarantee to pay him his money, after he sells he won't give a fuck if they haven't got two pennies to rub together.

 

 

Yup, he'll be in the USA playing Chili Palmer or whatever mid-life crisis takes his fancy next.

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