Two holding companies set up by Newcastle’s would-be owners in the US represent “background work” on a potential takeover.
GACP Capital Sports are partnering Peter Kenyon on attempts to broker a deal for Newcastle United with both adamant that they’re serious about a bid for the Magpies.
And – as our pictures show – they set up GACP Newcastle Partners LLC and GACP Newcastle Management LLC over the last few days in a move that can be interpreted as further work on a takeover.
Both companies have been set up in Delaware, and in an ironic twist, have been listed as being registered in New Castle. It’s significant in that it shows the things are going on in the background, but doesn’t necessarily mean anything concrete according to industry insiders.
The companies themselves don't have any assets and are only have tax liability of $300. Until something happens to trigger their use, they're effectively shell companies.
And anyone getting too carried away or claiming it’s moving a step closer to a deal being brokered should perhaps hold their horses. There’s been no indication from Newcastle, Mike Ashley or the Premier League that a deal is getting close.
Indeed the best that can be said about it is that it shows work is being conducted in the background by GACP Capital Sports, who are partnering Kenyon in this bid.
The US firm setting up to the pair of companies illustrates a readiness to move quickly if progress is made – and it seems certain to be followed by them setting up a company in the UK with Companies House. That would be a Sales Purchase Vehicle, from which shares in Newcastle could be transferred if a deal is done.
But fans wary of getting too carried away would note that Bin Zayed did something similar in the summer when they set up Monochrome Acquisitions , a dormant company that was established to oversee a takeover which didn’t progress beyond a very preliminary stage.
Football finance expert Kieran Maguire said: “I’d say the relevance to a deal actually being done are low as it’s very cheap to set up an off the shelf company.
READ: The brochure sent out by GACP Capital
“It does suggest they are doing some background work in the event that Mike Ashley comes to the negotiating table, but there are bigger issues to deal with first.”
To progress the deal, a bid would have to be accepted by Ashley and then the deal would have to go through Premier League checks which – considered it would be a consortium – could take weeks or even months.
