Mike Ashley in shock £16m bail-out offer to rescue cash-strapped Yorkshire from debts

Mike Ashley will table a remarkable offer next week to rescue cash-strapped Yorkshire County Cricket Club from its £16 million debts, Telegraph Sport can disclose. 

The former Newcastle United owner has no plans to buy the cricket club, but has told friends he is willing to provide the cash injection being pursued by the Yorkshire board for months.

Ashley will outline his formal proposal imminently and is now in direct competition with financial backers linked to Delhi Capitals, of the Indian Premier League. Intermediaries representing Saudi Arabia’s Public Investment Fund are also ready to swoop if talks stall next week.

With any proposed investment needing member approval, Ashley and the rival offer from India appear more likely to be palatable to a club pushed to the brink of collapse by the Azeem Rafiq furore. 

Yorkshire’s most valuable asset is Headingley Stadium, which has been reinstated as a Test venue and is also planned to host rock concerts. It is possible the ground could effectively be security in return for Ashley taking on the debt. 

The leading contenders have all spoken privately of the prospect for major growth in cricket. Ashley was criticised bitterly by Newcastle fans over his lack of spending on players and infrastructure, but his role at Yorkshire would be limited to him securing a first foothold in cricket. Yorkshire would be likely to agree to grant him some influence, however, with a seat on the board.

Ashley would relish the chance of seeing off Saudi Arabia in securing a deal. Relations became strained between Ashley and the Saudi consortium that bought Newcastle for £300 million in 2021. The 58-year-old appears more likely to get the upper hand at Yorkshire, with sources close to talks insisting no direct conversations have taken place with the Saudis.

Executives at Yorkshire, whose current financial model is heavily dependent on Test matches being played at Headingley, have not been looking to sell a stake of the club. Documents seen by Telegraph Sport show executives are pursuing refinancing on the club’s debt to former chairman Colin Graves’ trust as well as “working capital facilities”. 

In total, the package is thought to be worth £20million.

Ashley will be well-known to Stephen Vaughan, the Yorkshire chief executive, as they will have come into contact during the collapse of Wasps rugby club. In November last year, Ashley completed the purchase of the operating companies who run the Coventry Building Society Arena. Vaughan’s previous job was as CEO at Wasps, which could not refinance their retail bond of £36 million as it spiralled into administration.

In December, Yorkshire appointed FRP Advisory, corporate refinancing and restructuring specialists, to attract £20 million of new investment. Coincidentally, the same firm had acted as administrators during the collapse of Wasps.

Ashley and his rivals hope to shake hands on a deal as soon as possible but the situation is complicated as Yorkshire remain in the process of appointing a new chair, with Graves among potential candidates.

Yorkshire are in a race against time to restore financial stability, however. Lord Kamlesh Patel’s 16-month reign has seen the club pay out £3.5 million in legal fees and severance payments to 16 employers sacked when he took over the club. 

It also includes a mammoth £734,283 spent on a whistleblowing hotline and governance reviews of the club.