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Kieran Maguire salutes 'very clever' Newcastle after £319trillion reveal
Newcastle United issued one share at a cost of £40million in order to shore up the balance sheet without diluting the ownership structure.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about behind-the-scenes developments at St. James’ Park.
Documents filed with Companies House last Friday (4 February) show that Newcastle recently issued a single share at a value of £40m.
Maguire revealed via Twitter later that day that the allotment would value the club at £319trillion if all shares were issued at the same price.
New Newcastle majority owners PIF are worth approximately £400billion, 600 times less than the incomprehensibly large £319tn figure.
Maguire explained why the new regime decided to make the one-time £40m investment.
“There was a cash requirement because of the money they had spent in the January window,” he told Football Insider‘s Adam Williams.
“But they could have equally issued 40m shares for £1 each.
“However, if they had done that and all of those shares had been given to one party, it would have changed the dynamic of who owns the club.
“Presently, there is an 80-10-10 split between PIF, the Reuben brothers and Amanda Staveley.
“To give 30m shares to one of those would have distorted that significantly.
“I think it was a very clever move because they have millions of shares in issue.
“If you add one more share, it maintains the relationship between the senior investment partners.“
Newcastle spent close to £85m on Kieran Trippier, Chris Wood, Bruno Guimaraes and Dan Burn during the January window.
Matt Targett also joined on loan from Aston Villa.
In other news, ex-Fifa official suggests Newcastle United stat Jonjo Shelvey could get extended ban after Everton footage analysed.