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Ashley wants quick sale at Newcastle

It has been rumoured for some time that Mike Ashley wanted to sell Newcastle United, but now the club has been officially put on the market. After a controversial ten years at St. James' Park, which started with the Sports Direct tycoon sitting among the fans, it has all gone sour and his departure will be greeted with relief. Along the way, there have been two relegations and a controversial attempt to rename the stadium.

Mike Ashley has extended only modest loans to Newcastle, preferring to spend his personal cash on property investments such as The Clearings, a former John Lewis depot in Chelsea that is being developed into fashionable apartments. His reluctance to spend money did not please the Toon Army. Mr Ashley once said that he had been advised to stay away from games for fear that he might be assaulted. He has not been to a home game this season.

As the Financial Times notes today, 'Newcastle is a fiercely tribal club even by the standards of English football; fans tend to regard their allegiance less as a choice than a diktat of family history and geography.' When the club returned to the Premier League, viewing of matches by fans gave Sky and BT audience growth approaching double digits.

Ashley is keen to secure a quick sale before the January transfer window. He is looking for around £450m if possible, although £300m-£400m may be more achievable. In 2008 he paid £244m to take the club private and pay off its debt. However, the club said that interested parties would not have pay the full cost up front to give them the chance to invest in the playing squad. He estimates that the club needs to invest £200m in new players.

Ashley did try to sell the club in 2007, little more than a year after he bought it and shortly after he floated Sports Direct on the Stock Exchange. However, no buyer was forthcoming. The billionaire has now conceded that he could not compete with wealthy foreign backers when it came to buying top players.

One complication is a Revenue & Customs investigation into the tax affairs of the club and its players, although it could be completed by Christmas.

The club has already signed non-disclosure agreements, a precursor to formal discussions, with several interested parties. Four potential bidders are thought to be in the frame. Reported interest from China is said to have dissipated, but may revive once the Communist Party Congress is over and an expected green light is given to more overseas club acquisitions.

However, the front runner is Amanda Staveley whose PCP Capital Partners is said to control a £28 billion fund of mainly Middle Eastern wealth, although she also acts for investors based in China. She was involved in Sheikh Mansour's purchase of Manchester City: Amanda Staveley

In any event it looks like another Premier League club will enter foreign ownership.

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