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March to June 2020 - NEWCASTLE UTD fc

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Global spend in football is currently on hold due to a very volatile financial uncertainty.

This deal was pulled weeks ago.
 
Global spend in football is currently on hold due to a very volatile financial uncertainty.

This deal was pulled weeks ago.
You'd have to be stone mad to go ahead with a takeover of a football club at any level at the moment. Even if you've stumped up a £17m deposit, you'd sooner kiss that goodbye than the neck end of £300m, on a sport that won't be back on its feet for several years, and even then could look very different in terms of profitability. I wouldn't be surprised if the Saudis have asked for a price reduction before they complete. I also wouldn't be surprised if MA tells them to do one, and keeps the deposit.
 
You'd have to be stone mad to go ahead with a takeover of a football club at any level at the moment. Even if you've stumped up a £17m deposit, you'd sooner kiss that goodbye than the neck end of £300m, on a sport that won't be back on its feet for several years, and even then could look very different in terms of profitability. I wouldn't be surprised if the Saudis have asked for a price reduction before they complete. I also wouldn't be surprised if MA tells them to do one, and keeps the deposit.

Corona was already a huge concern when the deal was signed though
 
Corona was already a huge concern when the deal was signed though
Agreed, but the Saudis comittment was 'only' £17m, that gave them exclusivity, a chance to see how things developed. It now looks like a lot of the football industry is in deep shite, and some quite sizeable clubs could go to the wall, and others could drop in value enough to end up within the Saudi price range. It wouldn't take much to be more attractive a proposition than the asset-less NUFC.
 
300m seemed like a good deal for Ashley 6 weeks ago when there was some concerns about covid. Now things are worse, the picture is so much more bleak for football. 300m seems almost too good to be true for the fat man. Surely they'll be renegotiating.
Corona was already a huge concern when the deal was signed though
It was a concern, that's why it was 300m and not 340. Things have moved at a fast pace and situation is much more bleak than early/mid april.
 
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The deal was valued at around 350m using a well known model in football valuation. One of the inputs to this model was a stadium utilisation rate of 97%.......

The PIF also recently obtained short term financing of USD 10bn ( ) so they could go on a spending spree of buying "undervalued" stock, as they don't have that quantity of cash without selling an asset. Of course they are hugely wealthy but they are also very shrewd and on face value would be crazy to proceed at 300m, although it would actually "only" be 240m, as they are only buying 80%.

In addition having to triple VAT in Saudi and cutting the cost of living allowance ( ) makes you think it would be crazy for them to proceed. But then again the fella (MBS) rounded all of his rivals in a hotel, and has eliminated his rivals so I would never try and second guess him!

I would be interested in this story, whether it was Newcastle, or someone else.
 
I mean, I could mention at this point that Steve Bruce got Sunderland to tenth which is way higher than the generally-lauded Sam Allardyce.

You can paint a reasonably different picture if you ignore significant chunks of context.
 
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