Newcastle United: Saudi-led group calls off takeover of Premier League club

The proposed takeover of Newcastle United by a Saudi-backed investment fund has been called off.

The group, which included Saudi Arabia’s sovereign wealth fund PIF, PCP Capital Partners and Reuben Brothers, made a £300m bid to buy the Premier League side earlier this year.

But the process was held up by concerns about piracy by the kingdom and human rights complaints.

Image: Mike Ashley has owned Newcastle since 2007

Under the proposed deal, Saudi Arabia’s Public Investment Fund would have had an 80% stake in the club.

The British-based Reuben brothers and financier Amanda Staveley were planning to each buy the remaining 10% stakes, therefore ending the ownership of Sports Direct boss Mike Ashley.

They said in a statement that decision had been made with “regret” and was down to the worldwide uncertainty caused by the coronavirus pandemic.

“Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club’s owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities,” the statement continued.

“As often occurs with proposed investments in uncertain periods, time itself became an enemy of the transaction, particularly during this difficult phase marked by the many real challenges facing us all from COVID-19.”

The board of the Premier League had been carrying out an examination of the proposed takeover as part of its “owners and directors test”, which evaluates the suitability of ownership groups.

Papers regarding the proposed takeover were lodged with the Premier League in April, but no further details had been forthcoming since then.

Amnesty International had asked the Premier League to consider blocking the takeover because the fund was overseen by Saudi Crown Prince Mohammed bin Salman, accusing him of being involved in a “sweeping crackdown on human rights.”

:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

In addition the World Trade Organisation recently ruled that Saudi Arabia failed to stop a broadcasting operation pirating sports coverage – including of top flight games in England.

The WTO also said that Riyadh blocked moves to shut it down because of its dispute with Qatar.

The Qatar-owned beIN Sports network, which is banned in Saudi Arabia, holds the Middle East rights that are being pirated by beoutQ.

In February, the Premier League wrote to the Office of the United States Trade Representative to raise the lack of legal action taken by Saudi Arabia over beoutQ.