PCP Capital’s bid for Newcastle United has been rejected because of a “major sticking point” over their request for compensation in the event of the team being relegated, according to a reliable journalist.
Sky Sports News’ north-east expert Keith Downie took to Twitter on Tuesday morning to report the latest on the offer from financier Amanda Staveley for the Premier League club.
Downie reported on his personal Twitter account that talks between the club and PCP are ongoing, but the buyer want “compensation if relegated”, which is set to be a bone of contention.
It was widely reported on Monday, including by Sky News, that Staveley’s PCP Capital Partners submitted a £300million offer to Magpies owner Ashley last week to buy the Tyneside club.
It is said that the next step would be to award Staveley “a period of exclusivity within which to negotiate a deal” and this could come as early as this week.
The wheels are in motion for this deal to be complete, and it appears that it could well be done by the new year. Naturally, there are some major sticking points, as you would expect with the vast sums of money involved.
Given that the takeover could be completed midway through the season, it is understandable why Ashley would be unwilling to agree to paying compensation if Newcastle are relegated.
The team have begun the season solidly and are 11th in the table, five points above the relegation zone. It is a demand that the Sports Direct Tycoon is unlikely to accept.