Take Magpies off the market.
By Paul Gilder, The Journal, 26th May 2007
Sir John Hall is confident a return to private ownership will prove beneficial to Newcastle United.
The former majority shareholder insists Mike Ashley's plans to de-list United from the Stock Market will improve the club's Premiership prospects. Although he has sold his 41.6% stake in the Magpies to the 42-year-old billionaire, the former Gallowgate chairman will continue to influence affairs at St James's Park as he prepares to act as an adviser to the man leading a £133m takeover bid.
The Hertfordshire-based businessman will hope his attempts to wrest control from Freddie Shepherd will gather pace next week when he meets the club's current chairman for the first time. Ashley is hoping to persuade Shepherd and his fellow board members to follow Sir John's example and sell their shares in the club. United's directors have held an urgent board meeting following Ashley's initial £55m investment in the club and last night requested talks with the sportswear magnate. A meeting is expected to take place next week.
A short statement released to the Stock Exchange yesterday read:
"The board of Newcastle United has met to discuss the offer and has requested an early meeting with Mike Ashley and his team and look forward to discussing the offer and his plans for Newcastle United in more detail. It is hoped this meeting will take place next week."
Financial analysts expect Ashley's St James' Holdings Limited team to increase their stake in the club to a level at which Shepherd could soon be ousted without major problems. Such a situation would be avoided should the club's embattled chairman agree to part with his 29.8% shareholding.
It is a situation it seems Sir John would welcome following his decision to sell. He yesterday claimed the United board had `run out of ideas' and admitted the time is right to make drastic changes, although he will not sever his ties with Newcastle.
Sir John's appointment as the club's life president might at first have appeared to be nothing more than a symbolic gesture, but Ashley's team will utilise his knowledge in an attempt to ensure a smooth hand-over. "If they do get control, I've agreed to help them in whatever ways I can," said Sir John, who will advise a prompt return to private ownership after admitting that those seeking success in the cash-rich Roman Abramovich era must take such measures.
Asked whether he thought Ashley would seek to de-list the club should he succeed in a full takeover, he added: "I would guess so. My experience is that the city is not suitable for football clubs, there are too many controls and football clubs don't sit well within the city code. "We had to go down that road. At the time, we wanted to build a stand and it cost £50m, we had to go public to raise the cash to do everything we did. But, with hindsight, I would have stayed private. When Roman Abramovich came into the game, he changed it forever. It has become global, with all these people coming in." Ashley's arrival is expected to swell Sam Allardyce's transfer funds and, although so much at St James's Park is uncertain, club insiders are adamant it is business as usual.
The United manager will be allowed to pursue players without interference, with the club's prospective new owner determined to ensure matters in the boardroom do not have an adverse impact on the forthcoming season.
Ashley might be new to Premiership football, but it seems he has surrounded himself with experienced advisers as he attempts to make a success of his bravest business venture yet. "His team know the business," said Sir John, who yesterday broke his silence on the subject to speak to BBC Radio Newcastle. "Some of his team know Newcastle United very well. In my opinion, he will take the club to a new dimension. I'm certain he will be good for the club. I wouldn't have sold to him otherwise."
It remains to be seen whether Shepherd will agree to sell in the short-term. That Ashley is determined to own the club lock, stock and barrel as soon as possible is obvious. "He has made a bid for the rest of the shares and it's up to the other directors to decide what they want to do," added Sir John. "But someone like him would want control to make the investment. I'm certain if they get all the shares, they will invest."
Nufcmismanagement view:
The news just gets better and better.