Saudi talks on Magpies takeover sends wave of euphoria among fans

A bid by a Saudi Arabian state fund to secure ownership of Newcastle United is drawing scrutiny, but even if it succeeds it is unlikely that the petrodollars will transform the Premier League club into a powerhouse in the near future.

The prospect of the Saudi bid fuelling a rapid rise to the top, in the manner of Manchester City’s four title successes under owners from the UAE, has thrilled many Newcastle fans, but several analysts believe that the investment impact may not be on such a scale.

A group fronted by British financier Amanda Staveley, with an expected 80 per cent investment from the Saudi sovereign wealth fund PIF and 10 per cent involvement from billionaire brothers David and Simon Reuben, have made a reported 300 million pound ($375 million) bid to buy the club from British businessman Mike Ashley.

The proposed takeover is now being reviewed as part of the Premier League’s “owners’ and directors’ test”, which was previously known as the ‘fit and proper person’s test’.

Investors wanting to become owners of English professional clubs have to show they have no unspent criminal conviction for fraud, are not bankrupt, and have not been banned from serving as a company director.

Newcastle supporters, however, are mostly excited at the prospect of major investment in their team, which has not featured in the Champions League since 2004 and has not won the English title since 1927 or FA Cup since 1955, despite claiming one of the country’s largest fan bases.

The timing of the bid, though, is far from ideal — the Premier League is currently suspended due to the coronavirus pandemic.

Manchester City’s UAE owners have been closely involved in the major decision-making at the club with Khaldoon Al Mubarak chairman since September 2008 but that path may not be followed by the Saudis.

“PIF does not have the experience or capacity to be ‘hands on’ so would likely take a back seat,” says Neil Quilliam, CEO of Gulf-focused consultancy Castlereagh Associates.

Saudi Finance Minister Mohammed al-Jadaan addressed, in a television interview on Saturday, the issue of investments abroad, without directly mentioning PIF’s potential bid for Newcastle.

“The investments are highly important because they have returns we can use in case of a crisis to curb the deficit. If we use the reserves, we consume the assets and won’t have any returns.

“Also, these types of crises create investment opportunities. Many companies reduce their investments, which creates opportunities to invest in them,” he told Al Arabiya news channel.

PIF manages over $300 billion in assets. It has been in existence since 1971, but became a more active investor since 2015 when it started reporting to a high-level economic body headed by the kingdom’s Crown Prince Mohammed Bin Salman.

PIF has been tasked with delivering on Prince Mohammed’s ambitious economic transformation drive to reduce the kingdom’s reliance on oil revenues.

The fund is headed by former Saudi banker Yasir Al Rumayyan, whose title is governor and is seen as close to Prince Mohammed.

Financial sources have told Reuters that the crown prince had a say on many strategic PIF decisions, such as Softbank’s Vision fund investment.

Meanwhile, Hugo Lloris believes that ending the English Premier League season without declaring Liverpool champions would be “cruel”, but the Tottenham captain wants the final table decided on the field.

The goalkeeper is following the English social isolation rules at home with his family in London, helping his two oldest daughters with their homework while trying to stay fit in case the reason restarts.

“We’re in a situation where everyone wants to finish and get the verdict from the pitch,” Lloris told French sports daily L’Equipe. “It would be terrible if it all ended like that with nine or 10 games to go in the Premier League.”

“We’re coming into the most exciting, beautiful time of the season. Nobody wants it to end like this.” Liverpool lead the table by 25 points.

“It would be cruel for Liverpool with the lead they have. They’re practically champions. There would be a taste of the unfinished business.”

The France captain says that resuming the Premier League without fans will be strange.

“It’ll be weird wherever it happens. Football is not a closed-door sport,” he said. “Without spectators, it’s not the same sport. That’s not how I see football. We’re here to bond, to share our emotions. We all want full stadiums, with atmosphere, fans, colour and song.”

Agencies