Newcastle United's future will be in limbo until that of arch rivals Manchester United is resolved. American media and communications company NTL Incorporated announced yesterday that it has agreed a £10 million deal through subsidiary Premium TV to buy a 6.3 per cent stake in the club from Cameron Hall Developments.
NTL say they are looking to win a foothold in the bargaining process for the right to screen live sport.
But the fact that they have also secured an option to increase their holding to 57.1 per cent - CHD's entire interest - means that control of Newcastle is hanging in the balance.
And neither Newcastle United plc nor NTL has made any secret of the fact that the Monopolies and Mergers Commission's report on BSkyB's £623 million bid to take over Manchester United is a major factor in any potential take-over.
The company has 12 weeks after the MMC announces its decision to make up its mind. NTL's announcement came after two days of feverish speculation following Newcastle's confirmation on Tuesday that they had received an approach from an unnamed company.
"If the best clubs are to compete with Manchester United in Britain, and the Milans and Barcelona, they need the strength of a company like NTL behind them."
