Newcastle takeover update

As I have noted in the past, talks of an impending Newcastle takeover are likely exaggerated and the by-product of a publicity arm. With the worlds financial markets in disarray, an investor of this magnitude is not easily found and equally has far investment options with far great than a Football club. Couple in the lack of financing available and the 70% drop in Mike Ashley's Sport Direct stock over the last fiscal year, a value-minded investor is more than aware they are in the driver seat and unless the price drops significantly below the targeted £300m price it is unlikely to happen shortly.

Keith Harris, CEO of investment banker Seymour Pierce who were retained to find a buyer for the club said to the BBC:

"What I have said in the past is, if you put yourself in the position of a prospective owner of Newcastle or any other football club, you want to be there and have had a chance to work with the manager to decide on what should happen to the playing staff, both coming out and going in. If that isn't the case, you probably want to wait and see how the activity was in January, so you would defer it until February."

"With Newcastle, the situation is relatively straightforward. The last month to six weeks has been, in the financial markets, the worst that anyone can ever remember, without any real sign, any tangible sign, of them getting better. The people that have either approached us, or we have approached and have responded positively, are no less affected. Whether you are worth £20billion, £10billion, you were probably worth a great deal more six weeks ago. People are being exceptionally cautious. The thing that has come in our favour is a strong performance of the US dollar, particularly against sterling, which means that it (buying an English club) has become much cheaper. We are hoping that comes to fruition. Obviously, we also have a transfer window coming up, the only chance a club has to amend its playing staff materially during the course of the season, and that will be playing on potential new owners' minds right now."

Newcastle supporters should become accustomed to the present ownership unless the the price-tag of the club is softened considerably or structured with a large series of provisions that contain internal financing.