Mike Ashley Takes Premier League to Court Over £300million Newcastle United Takeover

Strategic Insights -

Mike Ashley's St James' Holdings has been pursuing a proposed £300million takeover of Newcastle United for 18 months, with the Premier League failing to make a timely decision on the approval. The Competition Appeal Tribunal (CAT) has scheduled a hearing for September 29 to determine whether the claim can proceed, which could be subject to an appeal, further delaying the process. Meanwhile, Newcastle United, under manager Steve Bruce, continues to struggle on the pitch, being winless this season so far.

Key Takeaways:

  • The claim, submitted to the CAT, alleges that the Premier League infringed articles 101 and 102 of the Competition Act 1998 by exercising its power to block the proposed takeover under the Rules.
  • The claim states that the Premier League failed to apply the Rules in a fair, objective, and non-discriminatory fashion and/or used its powers to promote its own commercial interests and/or the interests of its business associates.
  • The claim seeks damages for loss of profit or loss of opportunity, an injunction requiring the Premier League to withdraw the Director Decision, interest, costs, and such further relief as the CAT considers appropriate.
  • The takeover saga has been ongoing for 18 months, with fans hoping for a speedy resolution.
  • The decision over whether the claim can proceed could be subject to an appeal, further delaying the process.
  • Newcastle United continues to struggle on the pitch, being winless this season so far.
  • The hearing will be live-streamed, allowing fans to watch the proceedings.

Statistics:

  • 18 months: The length of time the takeover saga has been ongoing.
  • £300million: The proposed value of the takeover.
  • 0: Newcastle United's winless record this season so far.
  • 101 and 102: The articles of the Competition Act 1998 alleged to be infringed by the Premier League.
  • 11 June 2021: The date the Premier League made an application to contest the Tribunal's jurisdiction.
  • 27 September 2021: The original date of the hearing, which was relisted for 29 September 2021.
  • 29 September 2021: The date of the hearing to determine whether the claim can proceed.

Sources:

  • "Claim under section 47A of the Competition Act 1998. On 11 June 2021 the Defendant made an application to contest the Tribunal's jurisdiction pursuant to Rule 34 of the Tribunal Rules. The hearing of the application listed for 27 September 2021 has been relisted for 29 September 2021." - Update on the CAT website
  • The St James' Holdings vs the FA Premier League claim - submitted to the UK Competition Appeal Tribunal (CAT)
  • "The Claim states that the Defendant exercised its power to block the Proposed Takeover when it decided between June and September 2020 that the Kingdom of Saudi Arabia would be a director exercising "control" over NUFC, for the purposes of the Rules ("the Director Decision")." - Court documents
  • "As a result of the breaches by the Defendant, the Claimant has suffered loss and damage. In particular, the Claimant has lost the immediate sale, or lost the likely opportunity of an immediate sale of its shares in NUL (which owns NUFC) to the Consortium Company." - Legal papers
  • "(1) Damages for loss of profit or, alternatively, loss of opportunity. (2) An injunction requiring the Defendant to withdraw the Director Decision and/or to reconsider the same. (3) Interest. (4) Costs. (5) Such further or other relief as the Tribunal considers appropriate." - What St James' Holdings are seeking.