Mike Ashley has been the owner of Newcastle United for 13 years and it seems like he is finally ready to sell. Over the past few years, there has been controversy surrounding his ownership as fans have questioned his dedication towards the football club. After weeks of speculation, a Saudi Arabian takeover seems to be on the cards.
Every takeover involves a rigid process. Acquisitions of this kind can collapse at any time if one of the five main steps are not done properly. This seems to be a takeover which has reached the final stage of completing the takeover.
Initial contact and exclusivity
Newcastle United is a huge club and has always brought a lot of attraction across the football world. For first approach, some simple expression of interest should be shown before discovering all the clubs activities in legal disputes, financial liabilities, existing debts, etc. Agreements are drawn out from Newcastle United and the buyers so that no leakage of important information is let out and provides exclusivity for them to negotiate.
Data room and sales purchase agreement
With the stages continuing to advance, provisions of a lot of confidential documents are provided for the buyers to see and analyse more information surrounding the club. At this point, head of terms are drafted and should provide all the potential purchasers and vendors’ identities alongside a ballpark price. The timeframe of the deal is to be expressed so that everything can be planned around carefully.
The general sales purchase agreement for the takeover of the Newcastle United football club will takes months rather than weeks. Producing the legal documents, strict conditions and several clauses take a lot of time and usually is a lot to go through. Both parties should then be able to send their documents to the Premier League for the final stage. Premier League is generally informed and check that all the funds are in place to allow the takeover to occur.