Advisers release statement on behalf of Newcastle United takeover investment bidders as they pull out
The Newcastle United takeover investment bidders have published a statement.
Their PR Advisers forwarding a statement to ourselves on behalf of PIF, PCP Capital Partners and the Reuben Brothers.
The statement confirming that they have pulled out of the bid to buy Newcastle United.
Maybe the most interesting sentence in the statement is:
‘Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.’
Which is then later followed by:
‘Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the Club’s owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.’
So no explicit full on going for the jugular blaming it all on the Premier League, just mentioning the ‘unforeseeably’ prolonged process.
Saying the Newcastle United takeover was ‘no longer commercially viable’ obviously points to them believing originally that running Newcastle United in an ambitious way could / would have produced long-term profits,
Even if the idea was to make money (nothing wrong with that) as well as making the club successful on and off the pitch, it seems a little strange to put that as a / the key reason for pulling out.
Obviously though, one thing we all know, there was a fixed agreement in place for the ‘Investment Group’ to buy Newcastle United and because the Premier League have dragged their process out, we as fans are still stuck with Mike Ashley.
What an absolute shambles.
The release forwarded to ourselves stating:
Statement by PIF, PCP Capital Partners & Reuben Brothers (“the Investment Group”) on Ending Their Bid for Newcastle United FC
July 30 2020 – An investment group (the “Investment Group”) led by majority investor the Public Investment Fund; PCP Capital Partners; and RB Sports & Media, announced today that it has formally withdrawn its interest in pursuing the acquisition of Newcastle United Limited and Newcastle United Football Club Limited.
The Investment Group issued the following statement:
With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the Club to the position of its history, tradition and fans’ merit.
Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.
To that end, we feel a responsibility to the fans to explain the lack of alternatives from an investment perspective.
As an autonomous and purely commercial investor, our focus was on building long-term value for the Club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a difficult period of global uncertainty and significant challenges for the fans and the Club.
Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the Club’s owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.
As often occurs with proposed investments in uncertain periods, time itself became an enemy of the transaction, particularly during this difficult phase marked by the many real challenges facing us all from Covid-19.
We feel great compassion for the Newcastle United fans with whom we shared a great commitment to help Newcastle United harness its tremendous potential and build upon its impressive and historic legacy while working closely with the local community.
We would like to say that we truly appreciated your incredible expressions of support and your patience throughout this process. We are sorry it is not to be.
We wish the team and everyone associated with it much good luck and success.’
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