A name that all of us have seen hovering around the name “Newcastle” for the past week has been Amanda Staveley’s. With many reports saying that she has put in a bid for the club, the next step, the “due diligence” process, has said to have begun. This is an examining period of the club for which the potential buyer can start to understand how the club is ran and how it looks financially, away from the public eyes. Although this seems like a no-brainer when buying a club that you are not totally familiar with, it’s not completely “necessary” and it is said to have been proactively done by Staveley’s group.
At this point, Newcastle United will be looked at under a microscope. Assets, liabilities, and everything an accountant could hope for will be looked at and recorded. This isn’t a short process either, as Staveley and PCP Capital Partners will like to know everything about what they are prospectively buying. Don’t be surprised if a conclusion of this due diligence isn’t reached for a while.
Looking back at the 2007 purchase of the club would show that no due diligence was ever sought after by Mike Ashley’s group. So this process is not necessarily a must do. But with the news of the HMRC raids and the repercussions that could be following that, it would be best for Staveley’s group to take a closer look.
Finally, does this mean that Amanda Staveley is our next owner? Not quite. Although it does show the high interest she has for going through with the purchase. Something to remain excited about.
This development has undoubtedly caused a stir amongst Newcastle fans as the race for the next owner has started to heat up and the finish line seems to be just over the horizon. A Staveley ownership could mean nothing or everything to this club who have been seen as a “sleeping giant” waiting for the right time to awaken. A giant that Mike Ashley couldn’t dream of becoming.
With Mike Ashley’s deadline of December coming quicker than we may expect, it is important to note that Staveley isn’t the only credible buyer interested in Newcastle United. Andrew Henderson, Mike Ashley’s lawyer, made a few statements regarding this fact, saying: “We are also continuing to engage with a number of parties with whom we had entered into negotiations prior to Monday’s announcement.” Something to keep in mind. Staveley is not the only horse in this race.