Show me the money...
PCP Capital Partners Limited, the company owned by Amanda Staveley and reported as the company trying to buy Newcastle United, is worth just £10.
No, that’s not a typo, but the actual full accounting statement for the company as at 31st March 2017, the end of the last full financial year, in accounts published today.
So what does this mean? And how can a company that has less money in the bank than most Newcastle United fans buy a football club?
Well, a lot could have changed since the end of the last tax year, although it is not uncommon for updates to be provided when filing accounts on significant movements. Evidence of such updates can be seen in the MASH Holdings accounts for last year where Mike Ashley provided clarity that he had subsequently paid his ‘bar bill’ at Newcastle United running into hundreds of thousands of pounds even though this information was not due to be filed until next year.
Still, it is entirely possible that additional revenues could have been added to this company since 31st March 2017, but it does beg the question … where is the money coming from?
We do know hat PCP Partners have no employees and are essentially exempt under tax laws from being audited last year due to a lack of turnover. So there must be other companies or wealthy individuals involved behind the scenes.
It is reported of course that Amanda is a wealthy individual in her own right. There would be nothing stopping her form making such an investment from any personal fortune. We also know that Amanda was a key figure in the purchase of Manchester City, where she was working exclusively for foreign investors who would eventually purchase the club.
Most likely however is that PCP is being used as the fronting vehicle for whoever really is trying to buy the club.
Without any operating profit, assets and cash surplus the use of PCP Partners would not pass the Premier League test as it stands based on it’s last set of accounts. So what will be interesting to understand is what evidence of funding has been provided to Mike Ashley to get to the point of firm bids and a dinner date.
So who really is trying to buy Newcastle United?
The mystery continues…