Partner Article

Takeover plan could take a new direction

A GROUP which last year launched a bid to take Newcastle United into ownership of its fans – with support from regional businesses and other financiers – has said it is currently looking into the possibility of taking the model “in a new direction” after admitting certain aspects of the plan to oust Mike Ashley may need a rethink.

Last Autumn, Newcastle United Supporters Trust (NUST) launched its plan to raise funds to buy the club from the Sports Direct tycoon through its Yes We Can initiative that saw emails being sent out to over 40,000 fans across the globe asking them to pledge support through a deposit.

The NUST at the time said the idea was based on fans investing in the club through a number of financial opportunities which will be held by a local solicitor in an escrow account to demonstrate to Mr Ashley that the fans have proof of funds.

Supporters were asked to pledge 10% of their investment into the account and guaranteed that the money would be returned if the bid fails.

Yesterday the NUST issued an update in which it admitted the opportunity to offer supporters the chance to buy the club may have come too soon, given the infancy of the organisation at the time.

The group said: “Back in Sept/Oct 2009 an opportunity presented itself to NUST that could potentially offer supporters, together with local businesses and other financiers, the opportunity to purchase NUFC. This opportunity came along much earlier than anticipated and arose at a time when the NUST was in its infancy. However, it would have been foolish not to have pursued this opportunity when it presented itself to the Trust.

“The overwhelmingly positive response to the ‘Yes We Can’ (YWC) campaign proved the hunger for such a model amongst supporters. However, as time went on it became clear that while the idea was undoubtedly along the right lines, certain parts of the overall structure needed to be re-thought and possibly taken in a different direction in order to ensure that the outcome worked in the interests of NUST’s members and the wider fan base.”

Following elections in March NUST now has a new trust board, which includes co-opted Newcastle Central MP Chi Onwurah.

This was posted in Bdaily's Members' News section by Ruth Mitchell .