Saudi Arabia’s Public Investment Fund (PIF) will take a controlling 80 percent stake in Newcastle in a takeover deal worth £300m. Also, what next for Steve Bruce, Mike Ashley, and what does it mean for Newcastle going forward?
A Saudi-led consortium is set to complete their takeover of Newcastle United. They are bringing Mike Ashley’s 14-year ownership of the club to an end. What does it mean going forward?
The takeover will involve Saudi Arabia’s Public Investment Fund (PIF) taking a controlling 80 percent stake in the club. Also, with the purchasing consortium led by Amanda Staveley.
The deal to buy Newcastle has been fraught with controversy and obstacles. It is since Staveley and her party registered an interest in acquiring the club four years ago
That appears to be coming to an end. Still, how did we get here now and what does it mean for Newcastle going forward?
Diplomatic disputes in the Gulf, objections based on Saudi Arabia’s human rights record, and Premier League ownership concerns have all been issues in the process to this point.
What has changed for this to happen now?
The big thing has been the agreement struck on Tuesday between beIN Sports and Saudi Arabia. This was over illegal streaming of Premier League matches in the Gulf State. That was the major obstacle in the takeover going through and it has now been ironed out.
Three things were holding it up in this regard…
As part of a diplomatic dispute, beIN, which is a Qatari company, has been banned from broadcasting in Saudi Arabia for the last four-and-a-half years. Since news of the potential takeover first appeared beIN Sports wanted the ban of their coverage in Saudi Arabia to be reversed.
As part of this, beIN launched an international arbitration case against Saudi Arabia. They are seeking damages of $1bn due to their refusal to show Premier League matches in the country.