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Peter Kenyon launches Millionaire club to buy Newcastle United – Dubious Report

2 years ago

Friday morning sees a Newcastle United takeover update report regarding Peter Kenyon.

This one very much falling into the ‘believe it or not’ category.

The ‘exclusive’ claims that Peter Kenyon is now looking for smaller investors to make up the alleged shortfall in cash that he needs to buy Newcastle United.

The report states that the former Chelsea and Man Utd Chief Executive is inviting investors to be part of the buyout if they can come up with £1m.

The silly season just got a whole lot sillier.

This whole thing just sounds more and more ridiculous by the day, it is almost as though somebody is running a PR campaign of planted/’leaked’ stories in the media that wants to make an alternative potential owner sound even worse than Mike Ashley.

I just wonder who could possibly benefit from putting out such stories…

Already people have reacted on social media saying what is the point of this potential Peter Kenyon buyout, if he can’t even raise the money to buy the club, never mind have money to invest in helping to turn around everything that is wrong at NUFC, on and off the pitch?

The ‘exclusive’ (see below) in The Sun also makes that point.

They also say that Kenyon’s supposed plan/proposal would also mean he wouldn’t have the full purchase price ready either and would pay by instalments.

Are we really supposed to believe all this?

Unless it was a money no object part of a much bigger plan thing like what has happened at PSG and Man City, then buying a club mid-season that is in real danger of relegation, wouldn’t sound impossible. They could see a relegation as just a temporary obstacle that would just delay them in moving the club towards success, using their massive wealth.

However, that is clearly not the case here, if you really believe Mike Ashley is interested in selling Newcastle United and you believe Peter Kenyon is struggling to raise the money from investors. If we did accept these things as true, then you have to bear in mind that people would only ever be investing in the hope of making a profit in X years time.

On that basis it is impossible to see any consortium and especially smaller investors, risking their money at this point, in what is basically a no-win gamble.

Say that you believe all the previous reports on Mike Ashley willing to sell, but only at his £300m valuation, AND you believe Peter Kenyon is leading a bid and welcoming all levels of investors…

Why on earth would they risk money at this point?

If the club stays in the Premier League it would still be valued at £300m (how can you believe it could be more than that when you look at how much work needs to be done???).

If the club is bought now for £300m and it ended up being relegated, then it would be worth probably around £150m-£200m. So the imaginary Peter Kenyon millionaire club investors, would immediately become half a millionaire (value) investors.

For what it is worth, I think it is laughable the idea that any takeover is going to happen during this season, if ever…

The Sun:

‘Desperate Peter Kenyon is appealing to investors to back his Newcastle takeover attempt – by offering them a minimum buy-in of just £1million.

The ex-Manchester United and Chelsea chief executive is still searching for the £300m needed to complete his purchase of the Toon.

And SunSport has learned that Kenyon is so anxious he is now doing a whip-round of anyone able to cough up a seven-figure sum.

Even then, the British businessman would only be able to pay Toon owner Mike Ashley in instalments staggered over the rest of the year.

But Kenyon is buoyed by Ashley viewing him as the “best fit” to buy the club.

And he is determined to get a deal over the line by any means possible, having spent weeks looking over Newcastle’s books and working with lawyers.

Kenyon’s struggle to meet Ashley’s asking price, however, does raise doubts about his suitability for St James’ Park.

When Ashley put Newcastle up for sale in October 2017, he claimed a new owner must have the investment necessary to take the club to the “next level”.

But it remains to be seen how Kenyon will find the money needed to strengthen Newcastle’s squad, even if he manages to successfully buy out Ashley.

In the meantime, Ashley has no intention of providing Rafa Benitez with any meaningful money to purchase players in the transfer window.

The Toon boss, who is likely to leave when his contract expires in the summer, expects to be left looking for loans and bargain deals at the end of the month.

Newcastle have won only one of their last nine games in all competitions.’


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