Football finance expert Kieran Maguire has suggested that Mike Ashley’s valuation of Newcastle United is excessively high.
But Maguire, speaking to The Athletic, has suggested that Ashley needs to lower his asking price if he is to wrap up a deal.
He said: “It’s as simple as nobody has been prepared to match his valuation.
“It’s a bit like putting a house up on the market and not being prepared to wriggle on it when the rest of the market thinks it’s over-priced.”
Maguire also acknowledges that “trying to work out the true value of a club is notoriously difficult” but, Everton, who were valued at £175 million when Farhad Moshiri increased his stake two years ago, as a “good benchmark” for the Toon Army and claims it is “difficult to justify” the Tyneside club being worth almost twice that.
You probably don’t need to be an expert in football finance to realise that Ashley’s valuation of Newcastle United is excessive. If we assume that he is indeed looking for somewhere between £300-350 million, then you have to ask yourself what kind of a value a potential buyer would be getting. Sure, they would be getting a great stadium and a captive fanbase, but beyond that, it feels like a bit of a raw deal. The squad needs investment, as proven by the dire start to the season made under Steve Bruce, and even with a new £40 million striker leading the line, it doesn’t look as if there has been any kind of dent made in the issues facing the Toon Army. Moreover, the training ground needs a revamp, and there is a lot of catching to be done due to years of stagnation under Ashley. As such, you can probably add at least another £100 million to that initial purchasing fee. Frankly, it’s ridiculous, and unless Ashley realises he needs to compromise, he won’t find a buyer anytime soon.