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- A consortium led by Saudi Arabia’s sovereign investment fund has finalised its A$567 million takeover of Newcastle United in the English Premier League
- The successful takeover announcement came days after Saudi Arabia resolved the obstacle that torpedoed the deal in the first place, broadcasting rights
- While supporters took to the stadium to celebrate, Amnesty International slammed the takeover
- In a statement, the Premier League said legal disputes concerned which entities would have the ability to control the club, which has now been resolved
A consortium led by Saudi Arabia’s sovereign investment fund has finalised its takeover of Newcastle United in the English Premier League, a move met with joyous fans in the streets and criticism amidst accusations of sport washing.
The sale has elevated Newcastle overnight from a middling club to, theoretically, one of the world’s richest.
As a result of the absence of regulatory permission, Saudi Arabia’s Public Investment Fund (PIF) abandoned a 305 million pound (A$567.2 million) deal to acquire the northeast club from much-maligned owner retail tycoon Mike Ashley 14 months ago.
The now successful takeover announcement came days after Saudi Arabia resolved the obstacle that torpedoed the deal in the first place, broadcasting rights.
Saudi Arabia had barred Qatari sports network beIN Sports, a Premier League rights holder, from operating within its borders since 2017, it has also been accused of hosting and running a rogue network that pirated beIN’s content.
beIN Sports last year demanded the Premier League block the takeover, eventually, the Saudi consortium pulled out.
On Wednesday, however, that roadblock disappeared as Saudi Arabia lifted the ban on the Qatari broadcaster.
The buyout, led by PCP Capital Partners’ chief executive Amanda Staveley, brings an end to an unpleasant era of ownership at St James’ Park for fans, but there are fears about ‘sportwashing’, a concept in which an entity uses sport to clean its reputation.
While supporters took to the stadium to celebrate, Amnesty International slammed the takeover, with secretary general Anges Callamrd tweeting “Shame. Shame on Newcastle United”.
Amnesty UK chief executive Sacha Deshmukh called the move “sportswashing” and accused the Saudi authorities of trying to hide “their appalling human rights record with the glamour of top-flight football”.
The human rights organisation criticised the Premiers Leagues owners and directors test, which conducts background checks to weed out unsuitable owners and directors from football clubs.
Amnesty’s head of campaigns in the UK, Felix Jakens, told the AFP news agency that the test has “gaps in it so wide you could drive a bus through them.”
In a statement, the Premier League said legal disputes concerned which entities would have the ability to control the club.
“The Premier League has now received legally binding assurances that the Kingdom of Saudi Arabia will not control Newcastle United Football Club,” it said.
PIF is chaired by Mohammed bin Salman, the Crown Prince of Saudi Arabia, a fund created to diversify the countries monies away from oil.
Fans are however ecstatic by the news, with Newcastle United Supporters Trust in a letter addressed to ‘his excellency Yasir Al-Rumayyan’ (governor of PIF) said the majority of fans backed the move.
“We are excited to think of a future in which there is a partnership between supporters and owners that will bring with it the first real hope for many years,” the supports group said in the letter.
