Ashley launches £133m buyout offer to Newcastle

Billionaire businessman Mike Ashley set up a £133.1m ($263m) offer for Newcastle United football club. The formidable offer came after Ashley, a retail entrepreneur, informed that he had bought a 41.6% stake in the Premiership team from Sir John Hall’s family for more than £55m. Newcastle have been trying to improve their position in the Premiership while fans have been getting increasingly disappointed with the team’s performance. With the replacement of Glenn Roeder by Sam Allardyce as manager of the club recently, came the third managerial change the Magpies have undergone in less than three years. Having won the FA Cup on six occasions and the league title four times, the club has a rich history. However, it has failed to win any major silverware for 38 years. If Mr Ashley succeeds in his takeover then he will join the league of large investors who have been buying stakes in English and Scottish football clubs that have included Manchester United, Liverpool and West Ham. Said Mr. Ashley: "Newcastle United has a wonderful heritage and the passion of its fans is legendary,… I am sure that, like me, they are already excited about the prospects for next season under the new manager’s stewardship." Mr Ashley’s approach is not the first to zero in on the club. Last year the Belgravia Group investment fund said it was considering a bid, but dropped its plans in January, saying it had failed to agree a price and transaction structure. Meantime, in December last year, hedge fund Polygon tried to take over the club, but pulled out of negotiations a month later. In October 2006, Newcastle United announced a £12m financial annual loss after heavy investment in players and a fall in revenues due to its failure to qualify for Europe. The result was a reversal in financial fortune for the Premiership club which made a £620,000 profit the year before.