EPL: $550 million Newcastle takeover in tatters as Saudis pull out
Long-suffering supporters of English Premier League club Newcastle dreamt of deep new pockets. But they’re fresh out of change.
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Saudi Arabia’s Public Investment Fund, PCP Capital Partners and Reuben Brothers have withdrawn from the process to buy Newcastle, Sky Sports has exclusively revealed.
Papers regarding the proposed takeover were lodged with the Premier League in April and were still being scrutinised.
Saudi Arabia’s public investment fund (PIF) had been set to take an 80 per cent stake in the Premier League club under the terms of the deal, which was understood to be worth $550 million.
But the Investment Group have now decided to end their interest, citing the worldwide uncertainty caused by the coronavirus pandemic and the prolonged process they found themselves involved in.
“With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club,” a statement read.
“We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans’ merit.
“Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.”
The decision is a blow to Newcastle fans, who hoped the planned takeover might lead to significant investment in the club – who finished 13th in the recently concluded Premier League season.
But 24 years to the day Newcastle famously signed all-time great Alan Shearer, the news for the club’s supporters was not so positive this time.
“A lot of us were half expecting one of the two parties to pull out given the length of time this had gone on,” Sky Sports’ Keith Downie said. “A number of MPs wrote to Premier League chief executive Richard Masters asking for him to make a decision because it was affecting supporters’ mental health, that’s the state it had got to up in the North East.
“We’ve had no confirmation from the Premier League whether the takeover would have passed or failed, I think we will never know, but, in many ways, the Saudi consortium pulling out has made the decision for them.
“Newcastle fans were dreaming of the takeover, they were attached to it, they were living by it and desperate for it to happen, so this is the worst news they could have had.”
The end of the takeover bid leaves the North East club still in the hands of businessman Mike Ashley, who has long faced protests and opposition from the fans.
“It’s devastating. The fans, everyone concerned with Newcastle – the whole city – was hoping for this to go through,” ex-Newcastle defender Steve Howey said.
“Mike Ashley’s tenure hasn’t been a happy one. Newcastle fans have been through this before but I think people got behind this one and thought it would happen. Doubt does come into your mind when it lingers on but I was still optimistic that it would go through.
“My heart sunk. It’s devastating for the fans, who had the cans ready to celebrate. This will cut very deep. Everyone had such great hopes about where the club might go and who they might buy.”
“If this takeover had gone through, Newcastle would have become the richest club in the Premier League,” Sky Sports’ Kaveh Solhekol added. “When you look at the Saudis’ wealth, they would have been 15 times richer than Man City, for example. The Crown Prince Mohammed bin Salman is worth 30 times more than Roman Abramovich.
“But the proposed takeover has been fraught with problems and difficulties from day one. It was not a football deal. It was almost a country buying a football club and it was Saudi Arabia, who have some controversial laws and a poor record – by Western standards – when it comes to human rights.”
The bid had been criticised by human rights campaigners and Peter Frankental, Amnesty International UK’s Economics Affairs Programme Director, said: “This deal was always a blatant attempt by the government of Saudi Arabia to try to sportswash its abysmal human rights record by buying into the passion, prestige and pride of Tyneside football.
“The fact that this sportswashing bid has failed will be seen by human rights defenders in Saudi Arabia as a sign that their suffering has not been entirely overlooked.”
Newcastle fans have expressed their frustration at the length of the Premier League’s scrutiny of the bid and press criticism of the takeover.
The NUFC Supporters Trust said: “The supporters of Newcastle United have been treated with contempt by large parts of the football media and the Premier League during this failed takeover process.
“It’s been made clear that we are the least important people in a decision which affects us the most. We need answers.”
TIMELINE OF NEWCASTLE’S PROPOSED TAKEOVER
January 25 – Sky Sports News confirmed that Saudi Arabia’s Sovereign Wealth Fund is in talks to buy Newcastle.
April 14 – Sources say PCP Capital Partners has agreed a deal to buy Newcastle with the price agreed close to $550m.
April 16 – PCP Capital Partners lodges paperwork with the Premier League with concerns over Saudi Arabia’s human rights record said to be unlikely to derail the deal.
April 21 – PCP Capital Partners pays a deposit and exchange contracts with Mike Ashley; Amnesty International raises concerns with the Premier League over the involvement of Saudi Arabia’s Public Investment Fund.
April 22 – beIN Sports urges the Premier League to block the sale of Newcastle to the Saudi-backed consortium.
April 24 – The Government is urged by Labour MPs to ‘take a role’ in the scrutinising the takeover.
April 29 – Mauricio Pochettino is reported as the new prospective owners’ number one choice as manager and are willing to pay him $35m.
May 12 – The Premier League refuses to comment on reports linking the Saudi-backed consortium with an illegal TV streaming service.
May 29 – Premier League chief executive Richard Masters says the league is not working to any specific time frame regarding the takeover.
June 16 – A World Trade Organisation report finds “prominent Saudi nationals” promoted illegal broadcasts, raising doubts of members of the consortium being able to pass the Premier League’s owners test.
June 17 – Newcastle receive a new takeover bid worth $640m from Henry Mauriss, the CEO of US TV company, Clear TV.
June 23 – Saudi Arabia announces a crackdown of websites illegally streaming sporting events to try and solve the key issue holding up the completion of the takeover.
July 28 – The UK Government distances itself from making any decisions regarding the takeover.
July 30 – Saudi Arabia’s Public Investment Fund, PCP Capital Partners and Reuben Brothers withdraw from the process to buy Newcastle.
— Sky Sports
Originally published as EPL: $550 million Newcastle takeover in tatters as Saudis pull out