Sunday, July 5, 2009
The latest news from the UK is that ANANDA KRISHNAN will takeover Newcastle United from Mike Ashley for 80 Million Pounds. In addition, he will take responsible for the club bank overdraft of 40 Million Pounds. Beside paying for the shares and taking over the liabilities of the club, Ananda have to pump in funds for the club to buy players to strengthen the team in order to help Newcastle to promote to the Premier League. I have a lot of respect for Ananda for the successes that he have achieved in Malaysia but I strongly belief that he will FAIL in this venture of returning GLORY to St James Park because of the following reasons:- Firstly, running a football club is different from running businesses like Maxis, Astro or Pan Malaysian Pool as the success of the club depended mainly on the 11 players in the football field. Even the Billions he has will not be sufficient if the 11 players on the field perform badly which will result in Newcastle not gaining promotion to the premiership.Remember Sir Jack Hayward ,despite investing millions in WOLVES,Wolverhampton Wanderers did not gain promotion during his time which is the same as Nigel Pickering who spend millions in Derby County without success in the English Championship which equivalent to division 2 under the old system.Just look at Harrods Al - Fayed,who have invested a least 1 Billion Pounds in Fulham and after so many years, Fulham have not won the premiership but every year have been fighting against relegation except for 2008/09 season. Secondly,if you look at the Newcastle squad,they is no quality in the team except for Damien Duff.The rest of the team memebers are just ordinary players and this bunch will not be able to carry the team to the premiership. Thirdly, most the teams members are not committed players except for Butt,Martins,Bassong,Duff,Harper,Beye and the 2 Taylors.With the majority of the team members are not committed,this spell disaster. Fourthly,all the players are on High Premiership Wages. With Newcastle in the Championship,the revenue from TV ,Sponsorship and tickets collection will be reduced and this will not be able to cover the wage bill of the players.This is financially disturbing. Fifthly,the timing of the takeover is late as the league championship is starting soon and this do not provide Newcastle enough time to recruit good quality players as many good players are sign by other clubs. In addition,they is no due diligent being carry out as the takeover is late as the season is starting soon and it would not be surprised if they are a lot of unrecorded and contingent liabilities together with huge capital commitments which are not included in the accounts of Newcastle. Finally, I hope that what I explained above is wrong but I am very confident that I am RIGHT. I certainly hope that Ananda Krishnan will proof me wrong and I wish him good luck.