An interesting snippet from today’s Telegraph reports that a bid for Newcastle United has been turned down but an increased bid is likely.

Newcastle United Rejects Initial Offer

By Andrew Murray-Watson, The Sunday Telegraph, October 1, 2006

The major shareholders in Newcastle United have rejected a bid for the listed football club from Belgravia Group, a secretive Jersey-based investment group.

It is believed that Sir John Hall, who controls 28.8 per cent of the club, his son Douglas, who owns an additional 12 per cent, and Freddy shepherd, the chairman, who owns a further 28 per cent, have rejected an initial approach.

However, talks are continuing and Strand Partners, the boutique investment bank, is understood to be optimistic that the trio will accept a revised offer.

An executive close to the negotiations said: “Talks are ongoing and there seems to be every chance of a deal being struck.”

Newcastle is valued at £91 million and it is believed the Halls and Shepherd will only accept a bid significantly in excess of £100 million.

Sir John will be offered the title of president at Newcastle, should a deal with Belgravia be concluded.

Newcastle also received an approach two months ago from Polygon, a publicity shy US hedge fund.

The bid for the club adds to the growing interest in top-flight English football from outside investors.

Several clubs, including Chelsea, which is owned by Roman Abramovich, the Russian billionaire, and Portsmouth, owned by Alexandre Gaydamak, are in the hands of extremely wealthy foreigners.

Earlier this month Randy Lerner, the US sports billionaire who owns Cleveland Browns American football team, bought Aston Villa.

Increased TV revenues from Sky, the satellite broadcaster, has also attracted buyers looking for a quick return on the investment.

Prominent figures within English football, including Arsene Wenger, the respected manager of Arsenal, have warned that the influx of foreign owners into the Premiere League could result in English football losing control of its destiny.

The “bung” crisis engulfing English top flight football in controversy could cool interest from overseas buyers.

Lord Stevens, the former head of the Metropolitan Police, is set to publish his report on transfer activity in the Premier League tomorrow.

He is expected to highlight a large number of transfers as worthy of further investigation to establish whether club officials or players’ agents took backhanders to secure deals.

Last weekend, having totally lost interest in the 6 football matches that were being shown live on my satellite I started flicking. After all - the Lads were playing on Sunday, so there was nothing worth watching.

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