LONDON: Newcastle United FC have been officially converted into the richest club in the world after the Saudi Public Investment Fund (PIF) ended British businessman Mike Ashley’s 14-year ownership by purchasing the Premier League club.
An investment group led by PIF (the kingdom’s sovereign wealth), and also comprising PCP Capital Partners and RB Sports & Media, completed the acquisition of 100% of Newcastle United Limited and Newcastle United Football Club Limited from St. James Holdings Limited.
PIF will provide the large part of the £305 million ($414.4m) takeover sum to convert Newcastle into the financially strongest club in England, as the fund’s €320 billion fortune is almost 11 times more than Manchester City’s owner – Sheikh Mansour bin Zayed Al Nahyan of Abu Dhabi.
All requisite approvals have been obtained from the English Premier League and the acquisition was completed on Thursday.
Regulatory approvals from the EPL finally came through only after Saudi Arabia declared its intent to lift a four-year ban on the Qatar-based broadcaster beIN Sports broadcaster and close pirate websites, which were the key obstacles that earlier led to the collapse of the takeover of Newcastle United by the PIF-led investment group.
Saudi Arabia’s ban was a key issue raised by critics of the proposed bid from the PIF, PCP Capital Partners and Reuben Brothers to buy Newcastle United from Ashley in April 2020.
“We would also like to thank the Premier League for its contribution in the regulatory process, which has helped lead to completion of this deal,” the investment group stated after the takeover was completed.
Yasir Al-Rumayyan, governor of PIF, will serve as non-executive chairman of Newcastle United. Amanda Staveley, chief executive of PCP Capital Partners, will have one seat on the board. Jamie Reuben will also be a director of the club, representing RB Sports & Media.
In a related development that came shortly after the official thaw in Saudi-Qatar relations, a football friendly was announced between Qatar-owned Paris Saint-Germain and players from two top Saudi clubs in Riyadh next year.
Last December, the EPL and beIN announced a new rights deal worth a reported $500m for the Middle East and North Africa region that will run until 2025.
British newspaper reports said at the time that 19 of the 20 EPL clubs supported the deal, with Newcastle the only club to vote against.
