Chris Waugh has revealed the extent to which Mike Ashley would gain in a financial sense if the proposed takeover of Newcastle United by the Kingdom of Saudi Arabian (KSA) were to go through.
According to tweets from The Athletic journalist, the accounts for St James Holdings Ltd, the company that Ashley set up to buy the Tyneside club, are out for the year ending 30 June 2019.
Are the Premier League to blame for the Newcastle takeover collapse?
The accounts confirmed that the chief executive of Sports Direct still has £112m worth of long-term interest-free loans at St James’ Park, which he would ideally recoup via the money brought in from the prospective takeover in the northeast.
Of those £112m loans in the Magpies, £1.23m is repayable on demand, with the remainder of £34m that Ashley loaned to the Toon during the 2016/17 term.
The other £111m requires “at least a year’s notice” to be repaid as it is a long-term loan.
Of those £112m loans in #NUFC:
– £1.23m repayable on demand (remainder of £34m Ashley loaned to club during 16-17 season);
– £111m requires "at least a year's notice" to be repaid (long-term loan)
Ideally he'd recoup it via a #NUFCTakeover (it's part of asking price)
— Chris Waugh (@ChrisDHWaugh) September 17, 2020
Indeed, by looking at the results of the accounts, one can see why Ashley is desperate for the takeover to happen, as he is potentially going to take the Premier League and its chief executive Richard Masters to court over their respective disputes.
By potentially collecting £300m from the Saudi-led consortium from the sale of Newacstle, Ashley would be able to clear all of his loans and thus would be able to leave the club in a financial surplus.
Nonetheless, it is not guaranteed that he would be able to beat the EPL and Masters in a legal battle, and so the loan figures will remain as they are for now.
Geordies, who do you think would win the legal battle? Comment below with your views!
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