Newcastle United have new owners! Saudi Arabian related deal complete
Newcastle United takeover by the Saudi Arabia's public investment fund (PIC) finally sees light of the day, as the English club collaborates with Saudi Arabia’s sovereign wealth fund.
The middle-eastern company is now the new owners of the Premier League club. The talks were going on since early last year.
Initially, the Premier League had a problem with the Saudi Kingdom that it might be controlling the club directly. Those problems were solved after the Premier League received a legal notice from the Saudi Government saying that they won’t be controlling the club.
Mike Ashley’s reign comes to an end after a bid of £300 million was made from the middle-eastern company.
80% ownership of the English club will belong to the Saudi consortium, the other 10% will go to Simon and David Ruben and the last 10% will belong to the English investor, PCP Capital Partners.
The deal to takeover Newcastle United by Saudi Arabia's Public Investment Fund (PIC) was initiated in 2020 but fell through since the consortium could not prove that the Saudi state won’t be involved in the club’s affairs. Prince Mohammed bin Salman is the leader of the Saudi state.
According to reports, some of the Newcastle fans wanted a new owner that could splurge good money at once to improve the team and its infrastructure. That is exactly what they got! Mike Ashley was not the most loved owner by the fans as many have been waiting for his departure.
However, the Saudi takeover of Newcastle United does not come without its controversies. The Saudi government has had a bad name in the human rights category according to the United Nations.
Talking about wealth, the Saudi PIF is worth over $400 billion, and we have possibly missed around $20-30 billion. Fair to say that this gives the Newcastle United fans a lot of hope for being amongst the big teams now. The club still has to play better this season as they are currently sitting in the relegation zone of the Premier League, with no wins to their name.
We have previously seen 2 teams being taken over by middle-eastern figures, they are Manchester City and PSG. Both the teams have made a name for being the best teams in Europe. The Premier League might get even better if things go the correct way.