AN American consortium interested in buying Newcastle United is expected to begin a process of due diligence tomorrow – but Mike Ashley’s hopes of agreeing a deal before the end of the month are receding fast.
Ashley stepped up his attempts to sell the Magpies in the immediate aftermath of the club’s relegation to the Championship, and had hoped to have severed his ties by the time Newcastle’s players return for the start of preseason training on July 1.
However, while a number of parties have expressed a tentative interest following Ashley’s decision to reduce his asking price to £100m, none have tabled a formal offer.
The American group appears to be the furthest forward in negotiations, and Ashley’s willingness to grant them access to the club’s books suggests he is satisfied that they boast the resources needed for a full takeover.
The due diligence process normally takes up to a fortnight, but Ashley is hoping that the procedure can be speeded up in an attempt to push through a deal.
Nevertheless, it now appears unlikely that a sale will be completed imminently. As a result, Ashley will instruct managing director Derek Llambias to remove some of the current confusion by stepping up some of the club’s preparations for the new season.
While that is unlikely to mean the appointment of a manager, it should result in the publication of a schedule of pre-season matches.
Llambias is also expected to demand progress in the ongoing attempts to sell some of the biggest wage earners on Newcastle’s books, a process that has stalled during the ongoing negotiations.
The likes of Joey Barton, Alan Smith, Fabricio Coloccini and Jonas Gutierrez have all been linked with moves away from St James’ Park in recent weeks, and having appointed an agency, First Artists, in an attempt to kick start proceedings, Llambias, who has spent most of the last three weeks in London, is expected to demand concrete signs of progress.
While Newcastle’s rulers have been reluctant to sell players against the wishes of interested parties, a reduction in the wage bill would make Newcastle a more attractive proposition to the various consortia who continue to monitor the club’s financial position.
The Singapore-based Profitable Group harbour a long-standing interest in the Magpies, although it is unclear whether the group boasts the funds required to buy Ashley out.
The same is true of a North-Eastern consortium that is understood to include former Newcastle chairman Freddy Shepherd.
Shepherd is definitely interested in returning to his former position at St James’ Park, but does not have the money to launch a takeover bid on his own.
Groups based in South Africa and Oman have also been in touch with Seymour Pierce, the law firm Ashley has instructed to oversee the sale process, but neither is thought to be close to making a formal offer.
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