Source: Telegraph
Mike Ashley extends deadline for Barry Moat to buy Newcastle
Moat now faces a race to put together financing for the deal, which is likely to cost him in excess of the £100 million Ashley is seeking for the club. As well as meeting Ashley's valuation Moat will also have to provide money to underwrite the club as they attempt to bounce back to the Premier League at the first attempt. Moat will have to reach an agreement with the club's bank Barclays, which last year extended a £39 million overdraft facility to the club. [LNB]Newcastle issued a statement indicating that Moat's discussions with Barclays were the main hurdle remaining to completing the deal and the primary reason for granting him extra time. [LNB] Related ArticlesHughton restores feelgood factor at NewcastleCrystal Palace 0 Newcastle 2Newcastle still courting Moat dealMaradona helps NewcastleMoat banking on £100m Newcastle deal"The extension is being granted to allow Moat and his advisers to conclude funding arrangements with Barclays for the continuation of last season's £39 million facility. This would allow a formal offer to be tabled," the club said. [LNB]Ashley's insistence on £100 million is understood to be an equally important factor, however, though there is a chance he will accept payment in instalments. [LNB]Moat opened discussions with Barclays last week, but it is understood that at no stage has he asked for the £39 million facility granted to Ashley to be extended to him. [LNB]Instead Moat wants to reduce the overdraft to a more manageable figure appropriate to a Championship club. To do so he will need to raise more than the £100 million Ashley is seeking and continue to offload highly-paid players. [LNB]Several big wage earners have left the club, including Obafemi Martins and, while some of the income has been used to reduce the exposure to Barclays, the facility available remains the same. [LNB]Newcastle will also receive the first instalment on a £13 million parachute payment from the Premier League shortly, reducing the bank debt on the club's books. [LNB]The tight time-frame set by the impending closure of the transfer window has made the task of raising finance more difficult, limiting Moat's ability to explore a wide range of options. [LNB]He remains determined to strike a deal, however, and bring in Alan Shearer as manager. [LNB]
