Newcastle United Takeover: Cause for Concern or Hope for Future
St. James’ Park, home of Newcastle United (Google Images)
English Premier League club Newcastle United has been taken over by the Saudi Public Investment Fund, the sovereign wealth fund of Saudi Arabia, led by Crown Prince Mohamed bin Salaman, with Yasir Al-Rumayyan taking a seat as a chairman. The deal has been solidified for 305 million pounds. The PIF will provide 80% of the transaction, holding a majority of the NUFC ownership. Amanda Staveley, a British businesswomen with large ties to the Middle East, will take an additional 10% ownership. The final 10% will be taken by investment brothers David and Simon Reuben.
This deal comes off the back of a 4 year ban in Saudi Arabia of beIN Sports that has finally ended. beIN Sports, a Qatari ran network that provides the legal broadcast of Premier League, Uefa and Fifa matches, has not been able to run in Saudi Arabia due to a dispute between the two nations on a diplomatic level.
Prince Mohamed bin Salaman (head of PIF and 80% owner) Amanda Staveley (10% holder), and former owner Mike Ashley. Photo via SkySports
“The phrase ‘human rights’ doesn’t even appear in the owners’ and directors’ test despite English football supposedly adhering to Fifa standards. We’ve sent the Premier League a suggested new human-rights-compliant test and we reiterate our call on them to overhaul their standards on this,” said Sacha Deshmukh, the Amnesty UK chief executive, who deals with international affairs.
"Instead of allowing those implicated in serious human rights violations to walk into English football simply because they have deep pockets, we've urged the Premier League to change their owners' and directors' test to address human rights issues.”
The Premier League has been reassured that the state of Saudi Arabia will be excluded from the hands on operations of the club, and the PIF is a separate entity from the state. Newcastle fans, however, are doubted by these claims as Salaman heads the PIF committee. The PIF has a net worth of 320 billion pounds, over 10x the amount of the next wealthiest EPL club owner. The new ownership is planning to spend 250 million pounds on both club infrastructure as well as players.
Current Newcastle manager Steve Bruce (Google Images)
According to a survey by the Newcastle United Supporters Trust, 94% of the members are in support of the takeover. Former 14 year majority owner, Mike Ashley, will make his exit in this takeover. Newcastle fans have been urging for the exit of Ashley over the last several years, feeling he had a lack of urgency and inspiration with regard to the club’s investments and ambitions. Fans have also been vocal in their desire for current manager, Steve Bruce, to be sacked; with new ownership this now becomes an even larger possibility.