Mike Ashley Looking To Orchestrate Quick Sale Of Newcastle

Ashley (r) Now Asking $163.7M For Newcastle,  $55M Less Than What He Paid For The Club In '07

UPS & DOWNS: In London, Paul Kelso reported EPL club Liverpool this week will "reveal increased profits and record turnover." The financial results for the FY ending July '08 will "show a 50% increase in profit before tax and depreciation" at $60.6M, up from $40.9M in '06-07 and turnover of $260.5M, a "club record." But the results will also show that the club's net debt has "almost doubled" from $71.9M in '07-08 to $140.8M, "largely the result of the refinancing deal struck with RBS in February last year and the club drawing down" a $31.1M loan to help develop plans for a new stadium. The accounts are also expected to reveal that Liverpool co-Owners Tom Hicks and George Gillett have "injected almost [$131M] in the club since the start" of the '07-08 season. Kelso noted talks with RBS about refinancing a loan "have been ongoing for some months and it is thought that the bank will issue fresh terms to [Hicks and Gillett] in the coming weeks." The increase in revenue was "largely due to a 60% increase in the Premier League TV deal but there were increases in merchandise and commercial income" in '07-08. Liverpool also is "expecting a boost from its online division Liverpool.tv, which it now owns outright having bought Granada's 50% stake in March last year." Liverpool.tv contributed US$8.2M to profits in '07-08 and the club is "forecasting that it will generate upwards" of $16.4M annually (London TELEGRAPH, 5/30).

RESPONDING TO CONCERNS: In London, Matt Scott noted Falcon Equity Chair Sulaiman al-Fahim launched his bid for EPL club Portsmouth last week "amid investor concerns about the viability of his Dubai property project," Hydra Village, which was "due for completion this year but will not be delivered for another two years." Al-Fahim last week said, "Let me be very clear in saying that my involvement in Portsmouth has nothing to do with Hydra. The money for the Portsmouth Football Club acquisition and the needed future investment has been raised through the network of Falcon Equity from Asian and Middle Eastern investors. None of these investors are from the real estate sector or part of the royal family" (London OBSERVER, 5/31).

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