Journalist Liam Kennedy has discussed the chances of Newcastle being bought out if the club is relegated this season.
In the Shields Gazette, he wrote about multiple issues involving the Tyneside club, giving some updates about a potential takeover at St James’ Park in the event of a possible relegation.
Takeover becomes ‘obsolete’ in case of relegation
Kennedy stated that he asked the Premier League on Friday whether the takeover would happen and whether the arbitration process would hinder anything if the Magpies go down. The Premier League responded by saying ‘we don’t know’.
Will relegation end chances of takeover?
Kennedy added that, in case of relegation, a takeover would become ‘obsolete’ even though PCP are still interested in buying Newcastle. However, a Championship club may not be an attractive purchase for them, as the Premier League would be a better way to announce themselves.
The journalist said: “Interestingly, I asked the Premier League this question on Friday – what would happen to arbitration and the ODT tests, if Newcastle dropped and issues were unresolved? Their answer? ‘We don’t know’.
“For me, the PCP Consortium deal becomes obsolete in the event of relegation. Yes, PCP still want to buy Newcastle, of that there is no doubt, but there would definitely be question marks about whether PIF would want in. A second division club is not the kind of sporting crown jewel to announce yourself on the world stage a Premier League one is. Remember the sportswashing arguments from last year? Yes, they still apply.”
Last year, the club’s takeover had failed as the Saudi-backed consortium had backed away from a deal. It was reported that they pulled out because fears of the fact that they would not be given the green light to complete the deal.
Relegation would be a huge blow
Steve Bruce’s men are currently 16th in the Premier League and only a single point ahead of Brighton and Fulham (BBC). The Magpies have won only twice in 2021 and a litany of poor results has seen them skirt dangerously close to the relegation zone.
Going down would lead to financial losses and, considering the fiscal impacts of the pandemic, that could be incredibly arduous for the club – a blow which would be compounded if the chances of the takeover fall away because of relegation.
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