Saudi Arabia’s PIF has cleared a significant hurdle in its quest to acquire a reported 80 percent stake in Newcastle United, according to reports.
The end of a piracy dispute involving the Premier League broadcaster beIN Sports could clear the way for a PIF-led group to buy the Newcastle United for $400 million. The dispute was the league’s biggest objection to a Saudi takeover of the club.
A consortium including PCP Capital Partners and billionaire brothers David and Simon Reuben struck a deal worth a reported $408 million to buy the club from owner Mike Ashley in April 2020, but the deal stalled after an outcry from Qatar-based beIN Sports, a major television rights holder of the Premier League.
Under Premier League rules, prospective buyers of league teams are required to be vetted in order to meet a so-called fit-and-proper standard required of new owners.
But tensions between Saudi Arabia and Qatar have eased significantly since the start of this year. But just weeks before the Biden Administration took over in Washington, the two Gulf nations began a process that would lead to the restoration of ties and a thaw in relations.
Per the AFP, the takeover could transform Newcastle’s fortunes — “despite regular attendances of 50,000 at St. James’ Park, Newcastle have not won a major trophy since 1969.”
According to the New York Times, a Saudi takeover “would be the latest infusion of sovereign Gulf money into European soccer, joining owners not only at City but also Qatar’s ownership of the French champion Paris St.-Germain. The seemingly bottomless resources of those ownership groups have since built teams that are now firmly established as among the best in Europe, and reshaped the modern soccer economy.”
