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Saudi Arabian consortium completes Newcastle United £300 million takeover

Newcastle United players celebrate after Newcastle's Jeff Hendrick scored his side's opening goal during the English Premier League soccer match between Wolverhampton Wanderers and Newcastle United at Molineux stadium in Wolverhampton, England, Saturday, Oct. 2, 2021. (AP Photo/Rui Vieira)

Newcastle United has confirmed through an official statement the takeover of the club following an 18 months saga that dragged and saw the club involved in complicated legal disputes with the Premier League.

The club disc closed this in a statement that, “An investment group led by the Public Investment Fund, and also comprising PCP Capital Partners and RB Sports & Media, has completed the acquisition of 100% of Newcastle United Limited and Newcastle United Football Club Limited from St. James Holdings Limited.

“The Investment Group is comprised of long-term, patient investors who have every confidence in the future success of the Club. Today’s announcement is the conclusion of a thorough and detailed process that has allowed the Investment Group to arrive at a deal that benefits all stakeholders and will leave Newcastle United well-placed to pursue a clear, long-term strategy.”

The takeover by the Saudi Public Investment Fund initially failed last year as the Premier League was concerned about the entities that would have control over the club if the acquisition proceeded.

The Premier League released in a statement last year: “The Premier League Board has, on a number of occasions, given its opinion about which entities it believes would have control over the club should the consortium proceed with the acquisition. That opinion is based on legal advice.”

The Premier League further said the potential takeover could proceed to the next stage if the relevant authorities provide all necessary information.

The PIF has had to offer assurances to the Premier League that its Chairman, Mohammed bin Salman, Saudi Crown Prince, and in turn the kingdom (Saudi Arabia) will not have any control of the running of Newcastle United which in turn led to the approval of the acquisition by the Premier League.

His Excellency Yasir Al-Rumayyan, Governor of PIF, said: “We are extremely proud to become the new owners of Newcastle United, one of the most famous clubs in English football.”

“We thank the Newcastle fans for their tremendously loyal support over the years and we are excited to work together with them.”

The £300 million takeover ends the 14-year ownership of the club by Mike Ashley. 80% funded by Saudi Public Investment Fund, the fund will be seen as separate to the Middle Eastern State and therefore allow the takeover to pass the Premier League’s owners’ and directors’ test.

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