The proposed takeover of Newcastle United by Dubai-based financier Amanda Staveley’s PCP Capital Partners is being held up by disagreements over the club’s value in the event it is relegated from the Premier League, according to British media reports.
According to a report in the Financial Times, Staveley and current owner Mike Ashley are still in talks, but have so far been unable to come to an agreement on how much will be paid for the club if it is relegated.
The club is currently one point above the relegation zone and, according to the unnamed source quoted by the Financial Times, PCP has estimated that there is a 65 percent chance the club will be relegated. Quoting people close to the negotiations, the FT is reporting that Staveley is resisting paying a high price up front and will not entertain promises of a rebate should the team be relegated.
In November, PCP Capital Partners made a £250 million ($333 million) offer for the club. Ashley was originally seeking as much as £400 million ($532 million).
The FT notes that unless concessions are made soon, any potential deal may not be completed before the close of the next transfer window in January, meaning that any new owner would have to wait until the net season to invest in new players.
The newspaper reports that a source with knowledge of the negotiations has suggested that any deal might not be agreed until February, after the Premier League’s auction for domestic broadcasting rights.
Staveley declined to comment for the FT story, while Newcastle and a spokesman for Ashley did not respond to requests seeking comment.
In September 2008, Staveley played an important role in deputy Prime Minister of the UAE and Minister of Presidential Affairs Sheikh Mansour Bin Zayed Al Nahyan’s high-profile purchase of Manchester City from Thaksin Shinawatra.
In June, Staveley told Arab News that she considered English football to be “an attractive investment.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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