Falcon Equity Eyeing Chelsea Takeover, But Club Not For Sale
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Chelsea Says Club Won't Be Sold
Despite Potential Falcon Equity Bid |
EPL club Chelsea will "refuse to speak with" Switzerland-based private equity group Falcon Equity, "which says it is plotting a takeover of the club," according to the London TELEGRAPH. The Web site Arabian Business Friday linked Abu Dhabi Sheikh and Falcon Equity Chair Sulaiman Al-Fahim "with a bid for Chelsea." Al-Fahim is the businessman who "initially acted as frontman" for EPL club Manchester City Owners the Abu Dhabi United Group's US$271.8 buy-out of the club, before Al-Fahim was "ousted for speaking out of turn." Speculation has been "growing in recent weeks" that Chelsea Owner Roman Abramovich is "looking to sell up." However, Abramovich and the club have "fiercely denied" that claim. Chelsea sources said that even if Falcon Equity "decided to firm up their interest, they would not be prepared to speak with them." A source: "The club is not for sale." The Arabian Business report "carried quotes from Al Fahim claiming he was now considering a bid to test Abramovich's resolve." Fahim: "It's not entirely clear if Chelsea is for sale, but regardless of that, we first need to see if we are in a position to buy it." Falcon Equity Managing Partner Holger Heims: "I don't believe anything is ever not for sale if you come up with the right price. It's not about trying to buy a football team but about a business" (TELEGRAPH.co.uk, 1/23). More Heims: "We have looked before at some European clubs to see if the numbers added up, and now we are doing the same with Chelsea" (TIMESONLINE.co.uk, 1/23). The Manchester GUARDIAN reports a consortium of German investors, "thought to number five, are working with Falcon Equity" on a bid for the club (GUARDIAN.co.uk, 1/23).
NEWCASTLE FINANCIALS: In London, George Caulkin reports EPL club Newcastle United “made a pre-tax loss” of $46.7M for the year ended June 30, 2008. Of the team’s annual turnover of $138M, the wage bill amounted to $99.9M, or 72% of Newcastle’s income. About 60% is “generally accepted as the safe limit.” The deficit of $46.7M for the year includes $27.8M that “arose directly from the running of the club.” It confirms that, after buying the team for $183.7M, Newcastle Owner Mike Ashley “has spent another [$137M] to keep them afloat, including [$95.9M] on cutting debts” (LONDON TIMES, 1/23).
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