U.S. investors in talks with Newcastle

Jul 4, 2008 - 10:05 AM NEWCASTLE, England (Ticker) -- Informal discussions have taken place over the potential sale of Newcastle to American investors.

It is understood representatives of owner Mike Ashley have met counterparts from New York-based private equity fund InterMedia Partners.

One report on Friday suggested Ashley named a price of roughly $830 million - some $566 million more than he paid for the club a year ago - and that denied any chance of a deal being struck.

Sources in America have confirmed that the U.S. company was interested enough to hold initial talks, although whether that interest persists remains to be seen.

There was no comment from Newcastle on the matter Friday, although it is not the first time the the club's ownership has hit the headlines.

In the past, the word from St James' Park has always been that Ashley is building for a sustained future and is not looking to make a quick profit and then get out.

However, that has not stopped repeated talk in London, and now further afield, that the business is for sale at the right price.

Ashley installed long-time associate Derek Llambias in the new role of managing director at St James' Park last month following Chris Mort's departure as chairman.

The pair are currently overseeing the club's summer recruitment drive with executive director (soccer) Dennis Wise and vice-president (player recruitment) Tony Jimenez having provided manager Kevin Keegan with new signing Jonas Guiterrez earlier this week.

But Friday's news will do little to ease the concerns of fans who have seen their club undergo radical change in the last 12 months or so.

Former chairman Freddy Shepherd had already fought off a series of potential takeover bids when Ashley made his move last summer, eventually securing a $265 million takeover with the minimum of fuss.

He has since put around $200 million into the club to address the debt situation he inherited and to strengthen the squad.

However, far from throwing money at the task of dragging the Magpies back into the upper reaches of the Barclays Premier League table, he has embarked upon an economy drive in an attempt to slash transfer expenditure and a spiraling payroll.

Ashley had maintained a low profile, other than donning his black and white shirt on matchdays and at times, celebrating victories among the fans on the City's Quayside.

That has given him ample opportunity to gauge their views, and he wasted little time in dispensing with the services of manager Sam Allardyce in January after just eight months with results taking an alarming turn for the worse.