The Political Economy of Football V2

Amanda Staveley’s consortium has agreed a £150million deal to buy a 25.1 per cent share in West Ham United, which will throw the future ownership of the Championship club into doubt.  Through her firm, PCP Capital Partners, Staveley offered a higher sum than the one tabled by Daniel Kretinsky, the Czech billionaire who already owns 27 per cent of the club, to purchase the full stake from the family of the late David Gold. Last month the Gold family had agreed to sell 16 per cent of their stake to Kretinsky. He is now considering “all options” after the setback. The proposed deal would have made the Royal Mail owner the biggest shareholder and given him control of the club. Kretinsky and Vanessa Gold, David’s daughter, who are both West Ham co-chairs, said in a statement at the time that they had hoped the deal would be completed soon.  Staveley’s deal was more attractive to Gold’s family because they can dispose of the full holding and it valued the club at a higher s...

The Financial Times Football and Business summit this week was certainly timely. Roman Abramovich ’s purchase of  Chelsea   back in 2003 changed the face of English football, kick-starting an era in which billionaires and institutional investors buy clubs for status and trophies. So his decision to sell the team marks the end of an era.    However, those who are hoping for a return to the era of owners like Burnley’s Bob Lord may be disappointed. The move was widely interpreted as an attempt to head off potential sanctions. Politicians, including Labour leader  Keir Starmer , continue to call on the UK government to include Abramovich on its list of Russian targets. Richard Masters ,  Premier League  chief executive, said the fastest the league has ever approved a takeover is 10 days and there have been suggestions that a possible Swiss-American joint bid could be fast tracked. But he added any approval was unlikely if Abramovich was subje...

In an interview with The Times Amanda Staveley insists that she is not a time waster and her £250m bid to buy Newcastle United is still on the table. She responded to 'hurtful and absurd' suggestions that her move for the club had been a bid for self-publicity. While Staveley's most recent bid of £250m was significantly below Ashley's £350m asking price, she was committed to investing a further £200m on new players and updating Newcastle's trading ground and academy. 'This is an investment, but it has to be a long-term investment,' Staveley said. 'Newcastle would be run as a business, but we want it to be a successful, thriving business that is an integral part of the city.' A staging post could be the next Premier League tv rights deal. Then whether Newcastle stays up is pivotal. A relegated club would have a much lower value.

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 ...

Newcastle United have received a formal bid of approaching £300m for the club from PCP Capital Partners, the private investment firm fronted by the financier Amanda Staveley. The figure is said to be in the £260m-£300m range, but with an add on for good performance. No other credible bidder has emerged since the club was put up for sale. Her investors include significant funds based in the Middle East with access to around £28bn, particularly in the United Arab Emirates. The Dubai-based businesswoman has a strong track record in football club ownership, having brokered the sale of Manchester City to Sheikh Mansour's group in 2008. The figure offered, reportedly on a 'take it or leave it' basis falls significantly short of the £380m owner Mike Ashley is holding out for, itself a reduced figure from the £400m he originally hoped for. Ashley bought the club for £134.4m in 2007 and has more than doubled that investment in the ensuing decade. Another concern for the bidd...

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;...