Newcastle United takeover: Round 4

Another Newcastle United takeover soap opera is on the horizon as Peter Kenyon and a new group of investors aim to purchase the club.

For the fourth time since 2017, a group of investors have expressed interest in taking Newcastle United off of Mike Ashley’s hands. Well, several groups have been interested in Newcastle United, but only three groups have taken “serious” steps towards a potential deal – Amanda Staveley, Peter Kenyon,  and the Bin Zayed Group.

For the second time in less than a year, Peter Kenyon – former Chief Executive of Manchester United and Chelsea – has teamed up with a group of investors to pursue this takeover. A new report claims that Kenyon is working with three investors from American-based company GACP Sports, which is the same group that recently purchased Bordeaux in Ligue 1.

What We Know

Unlike Mike Ashley, GACP Sports are actually interested in football, and this is reflected in the hundreds of football training programs the company has founded across the United States. Kenyon and GACP Sports have published a 46-page brochure to attract more financial heavyweights in order to get this deal done. Unfortunately, this tells me that a deal is nowhere near complete, in fact it isn’t even on the table yet, and it could take a very long time.

Per the report linked above, we also know that Kenyon and GACP Sports are only prepared to offer Ashley £300m. The prospective buyers plan on paying £125m up front and will pay the remaining amount in three installments over a three year period. Kenyon’s desire to complete a takeover of Newcastle United is admirable, but only time will tell if he can raise the funds and if Ashley would accept an offer of £300m.

It is also worth noting that this takeover would obviously be welcomed by fans, but this group of investors would not transform Newcastle United into an overnight success. Joseph DaGrosa, the leader of GACP Sport, has an impressive track record when it comes to reviving struggling businesses, but he said it takes time. In a recent interview, DaGrosa made it clear that he cannot financially compete with the top dogs of European football, but instead wants to build gradual success through young talent. Here is the exact quote:

"It’s insane. I mean, I don’t have oil in my backyard, so at the end of the day, we have to find a different way to compete, and we think that means getting to young talent first."

As a Newcastle United supporter, I wish Kenyon and GACP Sports all the best in this endeavor. Even though they will not splash the cash in every transfer window, they are transparent about it, and at least they will make up for that fact by scoping out promising youngsters who can potentially carry the team in the future.