There is no chance of a Newcastle takeover in the coming weeks according to Christian Purslow.
The former Liverpool managing director describes it as ‘fanciful’ for a deal to be done by Christmas.
Newcastle fans have been hoping that new owners would be in position in time for the January transfer window, to ensure Rafa Benitez got realistic transfer funds to help Newcastle to stay up.
Mike Ashley stated that he wanted a deal to be done by Christmas but Christian Purslow says this was just opportunism by Mike Ashley.
Newcastle winning three games in a row early in the season and drawing with Liverpool, Purslow saying: ‘Mike Ashley was rushing, positively rushing to capitalise on Newcastle’s very good start to the season in the summer and autumn.’
However, with then a downturn in results, the former Liverpool MD believes it is now impossible that this kind of rapid deal could be done, if it ever could have happened…
Purslow doesn’t see how there can be any agreement on a value whilst nobody knows what division Newcastle will be in next season.
He states that the Amanda Staveley bidders, or indeed anybody else, will never agree to pay Mike Ashley’s top dollar price.
Whilst on the other hand Ashley won’t drop close to what they are willing to pay and most definitely won’t be agreeing to any kind of compensation arrangement in the event of Newcastle then being relegated.
Christian Purslow was Liverpool MD when FSG bought the club from Hicks and Gillett, Purslow forcing through the sale as the pair fought to keep hold of the club.
Newcastle fans will live in hope that a quick(er) compromise can be reached but it is difficult to argue with Christian Purslow’s argument/logic.
Mike Ashley was always going to be driving a hard bargain and any potential buyer, especially somebody with Amanda Staveley’s reputation, was going to do the same.
It is exactly four weeks until that January window opens and whoever owns the club then, must surely see that to not properly back Rafa Benitez will mean dicing with potential disaster.
Christian Purslow talking to Sky Sports News:
“Her (Amanda Staveley) view on value and Mike Ashley’s are some way apart but critically she is also starting to be concerned about relegation risk.
“Offering an owner of a Premier League team a deal that says, ‘I will give you £250-300m, but if in August I find myself in the Championship I’d like a refund of a £100m’…Mike Ashley is never going to accept a deal like that.
“The more likely sequence of events, I am not saying it is impossible, is that buyers wait to see where Newcastle settle and once their Premier League fate is secure then a deal gets done by the end of the season.
“But the idea that a deal is going to happen in the next few weeks, let alone at levels that are way below what Mike Ashley’s asking price was, is fanciful.
“I think by the end of the season is when the club gets sold.
“A run of poor form can turn a team in seventh place, everything looking rosy, into a team where the possibility of relegation starts to loom.
“The significance of that is that when you are buying or selling a football club, the valuation is directly linked to the revenue performance of that club.
“A club in the Championship is worth substantially less, a fraction of a club in the Premier League.
“Mike Ashley was rushing, positively rushing to capitalise on Newcastle’s very good start to the season in the summer and autumn.
“We are now moving into these long winter days and Newcastle have had a very bad run of form.
“For any potential acquirer of Newcastle, today, to commit to a valuation would be a very bold move because if the club was relegated that value would look crazy.”