Some clubs in the Premier League have tried to prevent the takeover of Newcastle United, English media reported on Saturday. In particular, Tottenham Hotspur chairman Daniel Levy strongly opposed the takeover of the club by the three Saudi investment companies. However, the top sports director of the London club was told by the Premier League that this was ‘useless’.
Public Investment Fund (PIF), PCP Capital Partners and RB Sports & Media took over the shares of club owner Mike Ashley for 350 million euros on Thursday. These three companies together have an estimated equity capital of 350 billion euros and with that Newcastle suddenly has by far the richest owner in the world. Liverpool, Manchester United and Arsenal were also reportedly opposed to the takeover, but their lobbying was also ineffective. The remaining clubs have asked the Premier League for a meeting to find out why the deal was approved.
English media estimate that Newcastle can spend more than €200 million this season under UEFA’s Financial Fair Play (FFP) rules, which dictate that any club must not spend more money than it comes in. There are some exceptions to this, which means that Newcastle can already spend a lot of money this season. Firstly, the condition that clubs must break even over a period of three years. The Magpies are therefore allowed to spend more this season, provided it pays for it within three years. In addition, club owners are allowed to reimburse fifty million of club expenses annually with money from their own pocket.
In a letter to supporters, the Saudi owners emphasized the long term. “Most importantly, everyone can expect ambition, but we’re here to build long-term success. We don’t take it lightly to own this club. We will never lose sight of what it means to be part of Newcastle United.” It is not yet clear exactly what plans the Saudis have with Newcastle.
The Premier League said in a statement that Saudi Crown Prince Mohammed Bin Salman has assured that he will not influence the club. Bin Salman is the chairman of the PIF. It was the last hurdle for the Premier League to approve the much-discussed takeover. He ordered the murder of journalist Jamal Khashoggi in Istanbul in 2018, according to the US intelligence agency CIA. Amnesty International also strongly opposed the plans because of the human rights situation in Saudi Arabia.
Newcastle has not played a significant role in the Premier League for years, from which it has even been relegated twice. Without a win in the pocket in the first seven games of this football season, the team of manager Steve Bruce occupies the penultimate place. Newcastle is known for its loyal following, but the last title dates back to 1927.