On Thursday, July 30, the Saudi-backed prospective takeover of Newcastle United was seemingly ended.
The plug was pulled on the deal with the Premier League in the middle of conducting their fit and proper persons test, which examines every potential new owner.
Mike Ashley has attempted to sell Newcastle on several occasions, but once PCP Capital Partners lodged official paperwork on April 16, it felt as though a takeover was, finally, happening.,
However, as the investigation process continued, sticking points emerged. These focused on human rights issues regarding Saudi Arabia which were, first and most, prominently raised by Amnesty International.
They also included the illegal streaming of Premier League matches in Saudi Arabia. BEIN Sports, the rights holders for the region, urged the Premier League to block the takeover as a result.
By late-July, a decision had still not been made and the Saudi-backed consortium grew frustrated. They then officially pulled out of the deal at the end of last month.
A statement from the investor group read: “As an autonomous and purely commercial investor, our focus was on building long-term value for the club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a difficult period of global uncertainty and significant challenges for the fans and the club.
“Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club's owners expired and our investment thesis could not be sustained.”
That decision took Newcastle and Ashley back to square one.
This is not the first time a potential sale has come close, and its failure does not change Ashley’s continued desire to sell the club.
But just how money has Ashley lost in the coronavirus crisis and is it enough to motivate a cut-price sale of Newcastle United?
Of course, it is not as easy as just stating a number, but based on a variety of sources, it is clear that Ashley has lost a substantial amount over the past few years.
According to the 2019 Sunday Times Rich List, Ashley dropped from 58th richest person in Britain in 2018 to the 74th.
The list compiles people’s wealth, which includes their land, property, other assets such as art, and shares in companies, though money in their bank accounts is not factored into the equation.
According to their research, Ashley was worth £1.976 billion in May 2019 and lost £461 million over the previous year.
Ashley’s main wealth comes from owning the Fraser’s Group, a retail company which oversees House of Fraser, Evans Cycles, a whole host of other retailers in sports and clothing, and, most famously, Sports Direct.
Frasers Group PLC share price has dropped markedly in 2020. Its peak price in the year to date was £518 on Tuesday, January 14. As of writing, that has dropped to £287.60, almost half of its previous highest point.
At one stage during lockdown, the share price dropped below £200. That had not happened since April 2011.
Of course, a man of Ashley’s wealth is far from broke and he has the financial power to hold on to Newcastle, should he want to.
But as his recent attempts to sell the club prove, he would like to find a buyer.
