Earlier this year, a group of Saudi Arabia’s sovereign wealth fund PIF (Public Investment Fund), Amanda Staveley’s PCP Capital Partners and Reuben Brothers (the billionaires – David and Simon) has made a bid of £ 300 million to buy the esteemed Premier League club Newcastle United. However, the deal has been called off recently and the Newcastle United has been screwed. Let us dive-in to know more about it and why it has happened.
There were multiple challenges for this deal to go through from various aspects, including the long waiting time for Premier Leagues approval on the said buyout. The following news clip from Sky Sports covers the issues in this deal.
Let us go through all the reasons to make this deal unhappening:
- Of course, the main reasons to call-off this deal from the Saudi-Based consortium is 17+ weeks of delay from Premier Leagues side.
- the second most prevalent reason is due to uncertain future of many sports in the world due to the widespread pandemic since early 2020.
- The delay in decision by Premier League is majorly due to the allegation put-in by human rights group on Saudi consortium over concerns about piracy by the Kingdom. 2 people had called the Premier League for blocking the takeover, one of them was the fiancée of murdered journalist Hatice Cengiz and the Saudi critic, Kamal Khashoggi. The information was about an assassination and dismemberment of Mr Khashoggi in late 2018 at Saudi Consulate of Istanbul, which was linked to the Crown Prince Mohammed bin Salman, who also happens to be the overseer of these funds.
This deal’s ownership was divided between 3 parts, 80% of the stake was proposed to be taken over by Saudi Arabia’s Public Investment Fund, British-based Ruben’s would have taken 10% and the remaining was proposed to be taken over by Amanda Staveley’s PCP Capital Partners. It would have ended the complete ownership of Mike Ashley over Newcastle United.
The statement given by the Public Investment fund is loud and clear though, please watch the news video clip to know more about it.
In this deal, a part of the Human rights allegations, uncertain sports future, pending decision from Premier League, it was the TIME which was the real killer of the said deal.
In addition to this, the World Trade Organisation (WTO) has stated that Saudi Arabia is still involved in broadcasting operation pirating sports coverage, which also included top flight games which happened recently in England.
This is a news which no one in Newcastle or its die-hard fans would like to listen, but this is true and happening, however, it could be a lucky escape by the team because now, Human Rights group will not hold any grudges with Newcastle United and Mike Ashley has to stay on as the owner for indefinite time.
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