Newcastle United are on the verge of being the next big sporting item to attract the Saudi royal family. The country has been diligently making a name for itself in sporting circles over the last two years hosting events that have included WWE, boxing, and horse racing. Now, Newcastle United could be on tap for purchase with the Saudi Arabia Public Investment Fund paying £240 million to acquire the club.
Negotiations are being headed by Amanda Staveley, the woman said to be responsible for brokering Sheikh Mansour’s purchase of Manchester City. Although she has previous with Newcastle United owner Mike Ashley, who wasn’t fond of their previous meeting, the large sum of money on offer could sway him to sell.
Staveley, who has a net worth claimed to be around £115m, heads PCP Capital Partners. If the deal goes through, she would obtain a 10% ownership interest in Newcastle United. Meanwhile, British property moguls, the Reuben Brothers, would own a 10% share. The remaining 80% would be the property of Saudi Arabia’s Public Investment Fund. With the markets currently being volatile due to the coronavirus pandemic, it is believed Staveley is trying to push through a deal to buy Newcastle United when others are panicking.
Newcastle United are already being linked with an assortment of high-profile managers including Massimiliano Allegri and the return of Rafael Benitez, along with expensive transfers. However, the potential deal has received criticism from human rights organisation Amnesty International. It is claimed Saudi Arabia has used sports over the last 24 months to distract the world from the injustices and lack of human rights within the country.
Despite the amount of money Saudi Arabia has in its coffers, it doesn’t mean they will spend it to transform the Magpies. Malaga’s Qatari owner Abdullah bin Nasser bin Abdullah Al Ahmed Al Thani famously stopped supporting the club at the height of their success due to the amount of money he had spent on wages, transfers, stadium upkeep, and more. Malaga players complained that they were not paid on time in Al Thani’s early days as owner and plenty of lies about supporting the club and building a new stadium were told.
Saudi’s Crown Prince Mohammed bin Salman ran into trouble in November 2019 when he allegedly held WWE wrestlers hostage after the company’s Crown Jewel in Saudi Arabia show. Saudi Arabia owed the WWE £390m and company owner Vince McMahon cut the feed of the live show angering the crown prince. Although the WWE claimed plane issues were the true problem, and not being held hostage, company employees stated otherwise.
Both Manchester City and Paris Saint-Germain have enjoyed significant investment from their Middle Eastern royal family owners. However, Manchester City are facing expulsion from the Champions League for the next two seasons due to Financial Fair Play infringements. The purchases of both Manchester City and PSG inspired UEFA’s FFP rule, which has barely curbed the two clubs from spending.
Newcastle United supporters will be excited with the news of potential new owners and the windfall of cash that could come with it. However, there is no guarantee Newcastle United would become the next Manchester City and not the new Malaga.
