Ashley plans Newcastle strategic review

Newcastle majority shareholder Mike Ashley has promised to invest money in the team – once he has carried out a “thorough strategic review” of how the club is run.

The sports retail billionaire is closing in on a takeover of the club after acquiring almost 70% of shares.

The future of current chairman Freddy Shepherd is set to be considered as part of the review set up by Ashley’s St James’ Holdings Ltd company, with the new man promising to strengthen the team.

In a formal offer sent to shareholders and obtained by the Daily Telegraph, Ashley said: “Many of the top teams have changed ownership and some of the new owners have been willing to invest significant amounts in maintaining and developing the strength and depth of their teams.

“SJHL recognises the unfulfilled potential of Newcastle, as shown by its investment in shares of £55.3m and its commitment to invest a further £78.5million to acquire the shares it does not own.

“Mike Ashley has funds to make available, through SJHL, for investment in Newcastle United.

However, before finalising the amount he is willing to invest, Ashley will want to undertake a thorough strategic review, including its existing infrastructure, contractual arrangements, playing staff and financial position.

“SJHL anticipates that this strategic review will commence after the offer becomes unconditional.”

Ashley is hoping to pass the 90% share ownership mark, when all remaining shares must be sold to him, by June 28.