Kieran Maguire: Ashley could be about to land £290m from £10m Newcastle gamble
Newcastle United have lost over £10million in legal fees throughout their battle with the Premier League – but they have everything to gain.
So says finance expert Kieran Maguire, speaking exclusively to Football Insider about the latest takeover developments at St James’ Park.
Newcastle were at loggerheads with the Premier League over PCP Capital Partners’ prospective takeover at this week’s Competition Appeal Tribunal.
As quoted by BBC Sport on 29 September, Daniel Jowell QC revealed that legal proceedings had cost the Magpies over £10million so far.
But that is a pittance when compared with the £300million which Mike Ashley will pocket from the potential sale of the club, claims Maguire.
“It is a risk on Newcastle’s part,” he told Football Insider correspondent Adam Williams.
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“Some of these costs are being underwritten by Mike Ashley, but it’s not a small amount of money, £10m.
“But ultimately we are talking about the sale of Newcastle for somewhere in the region of £300m.
“Mike Ashley is looking to make a return on his original investment. If successful, the sale proceeds will more than cover the legal costs.
“That will allow Ashley to walk out with a bit of profit. So he is looking at it from a holistic perspective.”
The CAT hearing was the first of two legal challenges mounted against the Premier League by Ashley.
Arbitration, the final and decisive stage of the legal process, is set for 3 January next year.