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Ashley turns down initial bid

Mike Ashley has turned down a bid for Newcastle United and is holding out for £350m. Amanda Staveley's PCP Capital Partners is considering an increase to its original performance related bid of £260m-£300m. However, it is thought likely to fall well short of Ashley's asking price.

Staveley's offer depended on whether the whole payment was made up front or in instalments, and differed according to which party accepted liability for relegation and a potential fine from HMRC. The relegation clause which would have triggered a significant repayment of funds if the club lose their top flight status in May was believed to have been a significant stumbling block.

The Price of Football has tweeted, 'Difficult to see how Ashley can justify asking £350m asking price when he only paid £134m ten years ago and has overseen two relegations. Shirt sales and 50,000 crowds in a stadium unused 340 days a year doesn't justify the price.

They have come up with a model that ends up with a valuation of £268m. But you can enter your own estimates and come up with your own figure: Valuing Newcastle

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