United set for talks showdown.
By Nick Whitten, The Evening Chronicle, 30th May 2007
Showdown Toon talks will take place this week but with both the main players absent.
The Newcastle United board announced to the stock exchange late last week they would hold a meeting with Mike Ashley to find out about his plans for the St James' Park club. But Mr Ashley will not be at the meeting which will take place at the end of the week and neither will current chairman Freddy Shepherd. Mr Ashley is expected to send a team on his behalf to outline his finances and plans for United, while Mr Shepherd will not be able to attend as he is still seriously ill in hospital.
Billionaire Mike Ashley shook the football world last week after he snapped up the Hall family's 41.6% stake in Newcastle United for £55.3m. And the 42-year-old has now launched a full takeover of the St James' Park club, offering 100p a share, valuing the club at £133.1m. However little has emerged since then of Mr Ashley's plans for United and club bosses have called this week's meeting in a bid to find out more. A club source said: "We need them to explain their case to us. "We need them to put forward their financing details, what they are planning to do and who they are going to do it with. "At the moment all they have done is bought shares in the club. We know nothing more so we are meeting with them to ask questions. "But until we do, we must act in a professional way and that is what we are doing. "At this moment we are still identifying transfer targets and meeting with players." Ashley's arrival on the scene has taken current chairman Freddy Shepherd completely by surprise.
He was taken into hospital last Monday suffering from pneumonia and a collapsed lung. He is still said to be seriously ill.
The club source added: "We very much doubt if Freddy Shepherd will be involved in the meeting. He is still very poorly."
A source close to Mr Ashley said: "I think it is highly unlikely that Mr Ashley will be at the meeting." Mr Ashley, the UK's 25th richest man with a personal fortune of £1.9bn, bought the Hall family's stake last Tuesday.
Offer documents are being prepared and sent out to all shareholders with Mr Ashley offering to buy their shares for 100p each in cash. Those close to Mr Ashley are confident he can get the extra shares he needs very quickly to reach the 50% mark and take control of the club.
Mr Ashley has succeeded where the Jersey-based Belgravia Group and the Polygon-backed St James' Park Group failed by claiming a major stake in United.
Dr Bill Gerrard a football finance expert from Leeds University, said: "To make Newcastle successful on the pitch, whoever is in charge will need to give Sam Allardyce massive transfer funds and the time and space to work."
Sports business expert Tom Cannon, who is also Dean of Buckingham University Business School, said: "It is a football club that can clearly do better. The only way is up."
Quiet rise of tycoon Sports tycoon
Mike Ashley has built his billion-pound-empire completely out of the public eye. Buying Newcastle United is his most high-profile venture to date.
In 1982, at the age of 18, Ashley opened his first stores in London, called Sport and Ski. By 1990 he had three outlets, trading under the Sports Soccer name. Over the next decade, he opened about 100 more. But as a sole trader he was exempt from filing accounts at Companies House, and the true scale of the Sports Soccer business was hidden.
In 1999 it became a limited company and Ashley went on to acquire Lillywhites, Dunlop Slazenger and Kangol, among other business interests.