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Laughable Peter Kenyon Millionaire club plan to buy Newcastle United crops up again in new report

4 months ago
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On 3 December 2018 Mike Ashley told Sky News that a sale of the club was imminent and a deal could be concluded within four weeks, as talks had gone way beyond any previous Newcastle United takeover moves.

This bidder in such advanced talks was named as Peter Kenyon by the media, with Mike Ashley’s people later confirming this with the leaked Peter Kenyon letter fiasco that followed weeks later.

With time dragging on beyond December and no visible progress on an NUFC takeover, an ‘exclusive’ was published (see below) on 11 January 2019.

This stated that Peter Kenyon was struggling to raise the takeover cash from larger investors, so he had now launched a ‘Millionaire club’ to buy Newcastle United.

The former Chelsea and Man Utd Chief Executive reported to have sent out information to smaller investors, offering them the chance to be part of a takeover from Mike Ashley for as little as £1m each.

Kenyon was said to have included details of how investors would be able to turn a profit on their investment, which just sounded like crazy talk (convincing investors) when the club in question is bang in the middle of a relegation battle.

Nothing was ever heard again of this amazing idea…until now.

The Chronicle now reporting that an actual ‘detailed brochure’ was sent out by Peter Kenyon in his failed attempt to raise the NUFC buyout cash.

Maybe this sums up the whole charade of Mike Ashley claiming to be on the brink of selling Newcastle United at such a time…

Pretty outrageous for him to go on live TV for the specific reason of ‘revealing’ that a sale of the club was imminent and talks were so far advanced, when he knew fine well there hadn’t even been proof of funds provided.

That is indeed if you actually believe Mike Ashley was genuinely trying to sell the club AND he was being genuine when claiming he was in any talks to sell NUFC, never mind ‘advanced’ ones.

Bottom line is that when you are told something that just doesn’t make any sense, it is usually a lie.

Nothing I have seen during this whole (latest) Newcastle United takeover charade, convinces me otherwise.

The Chronicle – 5 March 2019:

‘When Ashley declared on Sky News in early-December that he was hopeful of offloading the club by Christmas, that was an attempt to quicken the pace of Kenyon’s bid.

Hundreds of thousands of pounds had been spent by both parties on conducting due diligence, and there was a genuine feeling inside St James’ Park that a takeover might be imminent at one stage.

But Kenyon – despite sending a detailed brochure to potential investors in the USA and Europe, outlining how they could make a return on any cash they put in if they were to join his consortium – simply could not conjure up the funds necessary to meet Ashley’s £300million-plus asking price.

Finally, after more than six months of negotiations, the Sports Direct businessman has lost patience with Kenyon – and he has broken off talks with the former Manchester United and Chelsea chief executive.’

The Mag – 11 January 2019:

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?

If 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”.’

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