Newcastle owner Mike Ashley has valued the club at a minimum of £350million after rejecting an opening bid loaded with incentives, according to The Times.
Amanda Staveley and PCP Partner’s opening bid is reported to be a highly-incentivised one, only rising to £300million if Newcastle were to win the Champions League in the next 10 years.
The bid also reportedly included a relegation clause which would have seen Ashley make a significant repayment if the Magpies were to go down this season.
Ashley is reported to have invested around £260million into the club over his ten-year stint as owner, and wants to agree a fixed price for the club.
The businessman is happy to accept installments, but will only strike a deal if it is well above the initial £300million offered.
He is braced to receive another bid from Staveley in the coming days, but many expect it to still be well below his valuation.
A stumbling block to any deal is the pending HMRC investigation into the club, which would lead to significant fines if they are convicted of any wrongdoing.
OPINION
Amanda Staveley must have known that this initial bid would be rejected. Above everything else, Mike Ashley is a businessman, and will be looking to make a healthy profit from any sale. The clause surrounding the club winning the Champions League in the next 10 years is almost laughable, and Staveley must surely know that. However, the pending HMRC investigation does weaken Ashley’s position, and he may end up having to accept a bid that is lower than his £350million valuation. Whatever happens, one thing is for sure. A takeover is unlikely to happen by the start of the January window, which leaves Rafa Benitez scrambling for funds once again, and may seriously hurt Newcastle’s chances of staying up.