Football finance expert Kieran Maguire has been discussing how Newcastle United could be sold by Mike Ashley to avoid issues with the Premier League’s owners’ and directors’ test.
Following the recent failed takeover bid to purchase to Toon from a Saudi Arabian-backed consortium, it was stated that Saudi Arabia’s sovereign wealth fund, PIF, had ran out of patience with the test (per BBC).
The Premier League’s owners’ and directors’ test had been dragged out from when the £300m deal to purchase the club had been agreed in April to when then consortium pulled out at the end of July.
However, as Maguire has previously discussed on The Price of Football podcast, the ownership of the Toon is split up into 22 separate companies.
So, in the latest episode of the podcast, Maguire explained how having Newcastle owned by multiple companies could offer a way around the owners’ and directors’ test.
He said: “I think this is fascinating and if Mike Ashley is listening, I think his ears might have just pricked up. So, yeah, conceivably, this could work.
“You could divide the club into a series of sets of assets and sell them off one by one, so that the football club itself, which is effectively what is assessed under the owners’ and directors’ test, could go to one set of individuals who [have no issues].
“Then the other assets, such as the stadium, the training ground and other facilities could go to the ne’er-do-wells elsewhere.
“Certainly, the owners’ and directors’ test does not apply to the landlords.
“So, this could be extended much further in theory, so, I think [the listener who suggested the idea] has actually come across a cunning plan.”
TIF Thoughts…
As can be seen in what the finance expert had to say, he clearly believes that it is a possibility that a potential owner could bypass the owners’ and directors’ test depending upon which parts of the club they were going to own.
Do you think any chance at all remains for the Saudi Arabian-backed consortium to take over Newcastle?
No, we need to move on
Yes, anything is possible
However, a report by Chronicle Live in the middle of last month stated that PIF believes there is only a chance for the takeover if the Premier League alters its stance.
So, despite the possible idea from Maguire, it seems as though Toon fans should not get their hopes up.