Kieran Maguire has outlined the ‘advantage’ that Newcastle United have for potential takeover investors.
Speaking recently to Football Insider, the finance guru has claimed that potential buyers may be more attracted to the St. James’ Park faithful then say Derby County because they are currently in the Premier League and even if they do get relegated down to the EFL Championship will still have a lot of money to come in from matchday income, once fans are allowed back in the ground:
“A benefit of Derby over Newcastle is that you’re inheriting a much lower wage bill.
“Therefore, if you want to put more money into the club, you’ve got more flexibility in that regard. If there are players you want moved out, it’s less costly for the owner.
“The advantage of Newcastle is that it’s presently a Premier League club. Even if it gets relegated, you’re going to get three years worth of parachute payments which are worth the thick end of £100m.
“It’s a bigger ground and therefore a bigger fanbase so you have more money coming in. I think you’d have to assess those two issues against each other.”
Potential Newcastle takeover ‘advantage’
The fact that the North East club are still in the top flight should gather some attraction from potential buyers, including the Kingdom of Saudi Arabia (KSA) group, assuming that the KSA’s Public Investment Fund (PIF) would be willing to come back onto the table
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Even though relegation could be detrimental in terms of their hopes of being taken over by the KSA consortium, the Tyneside club would no doubt still be an attractive asset to invest in for other potential buyers, given its history and how big of a name in general the Magpies actually are.
Nonetheless, the key aim for the Toon will surely be to stay in the division come the end of the 2020/21 term, and assess their takeover options from there.
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