KV Oostende's relegation from the Jupiler League rounded off a dismal campaign for the Belgian side with the club reportedly in €6million worth of debt and fears from fans over their long-term future. De Kustboys, who reached the qualifying rounds of the Europa League in 2017, will play football in the second tier of Belgium for the first time in a decade.
The club briefly had their professional licence revoked in 2020 following financial issues under their previous ownership regime, before being bought by Pacific Media Group - a US-based investment fund that has stakes in a number of European clubs including League One side Barnsley, French club Nice and German 2.Bundesliga side Kaiserslauten.
PMG have reportedly cleared half of the debt at the Belgian club to allow KVO to play in the Belgian second tier next season, with takeover talks falling quiet. Wolves, Bournemouth and Newcastle United have been linked with a takeover at the Ostend based club in recent months.
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At the end of March, representatives from Fosun - Wolves' ownership - are said to have visited the Belgian side, while Bournemouth owner Bill Foley’s Black Knight Sports & Entertainment followed suit. A contingent from Newcastle United took in KVO's 4-0 thrashing by Leuven on April 15, a result that saw their top flight status come to an end.
Amanda Staveley made it clear at the Financial Times’s Business of Football Summit in March the Magpies were looking to establish a multi-club model network, with representatives from the Toon also reportedly watching fellow Belgian side Standard Liege, according to the Guardian.
The report claims Newcastle have held preliminary talks with French club Dijon and have been linked with Polish club Slask Wroclaw. PMG have reportedly set an asking price of €11million for KVO, with mayor Bart Tommelein calling for a robust plan to be put into place.
“The city of Ostend has a role in this story,” he said. “The stadium is built on the grounds of the city. The lease agreement does state that KVO must play professional football, so be active in the first or second tier.
"If not, the stadium becomes the property of the city, but there is a risk that no team will play in it. That is precisely why I want to know the future plans of current American investors.”
The mayor of Ostend says he has not spoken with PMG co-owner Paul Conway recently but has concerns over the city losing another one of its sporting clubs after a volleyball team was forced to close down. “I don’t want to see another club just shut down,” he said. “In the past, the investors promised to write a connecting story between the city and the club but little was achieved.”
The attraction to the Belgian side is obvious, according to Scott Coyne of the Belgian Football Podcast. He said: "The main attraction of KVO for the trio of English clubs is the prospect of establishing a satellite club in a country which is one of Europe’s most productive breeding grounds and has fewer work permit restrictions than the Premier League."
Newcastle could follow suit of Brighton's owner Tony Bloom with investment in KVO or Standard Liege. The Gulls owner also owns Royale Union Saint-Gilloise, who have impressed in Europe this season.
Bloom rebuilt Les Unionistes, won promotion to the top flight and then won the league in their first season back in the the Jupiler League. However, KV Oostende would need a major rebuild.
"They were vulnerable going into start of this season," Coyne said. "They struggled hugely and went into freefall. To be honest it was clear from reasonably early on that they would be in a relegation battle which ultimately they lost.
"They had very poor recruitment and the loss of an excellent coach last season hasn't helped either. Yes, they are one of the smaller clubs in the division and their relegation ended a 10 year stay in the top division."
Newcastle's owners have already been told they'd need to win over KVO supporters if they were to invest in the recently relegated side. Coyne said: "Fans believe they are a top tier side and they are right to think that way.
"They have been very understanding and patient with owners PMG who are not close to the fanbase and the recent relegation has confirmed some longstanding concerns held by the fanbase. There are definitely concerns about the club's long-term future.
"They have debts that have not been addressed and the club does not own the whole stadium. It currently rents one of the newer stands from a previous owner.
"Recent takeover talks have failed for a variety of reasons and PMG look to be digging in a bit now and replacing staff with new faces. It all seems to be a sticking plaster.
"They also gave quite a few players on long contracts and reasonable wages, so they have a complex task ahead reshaping the squad. There are real concerns about whether the club can mount a credible promotion push at the moment.
"The club needs and the fans desperately want new and credible owners to build for the future."
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