Adedapo Adesanya
By Adedapo Adesanya
Saudi Arabia’s sovereign wealth fund has advanced talks to buy English football club Newcastle United for about £340 million (about N156.4 billion).
Reports said there were negotiations between the Arab state’s Public Investment Fund (PIF) and British billionaire Mike Ashley, who made his fortune from sportswear retailer Sports Direct and has owned Newcastle United since 2007.
Saudi’s Public Investment Fund together with a group led by British financier Ms Amanda Staveley, are in discussions to buy the Premier League club.
According to the BBC, Ms Staveley failed to purchase the club two years ago after the Newcastle owner said he wanted to bring 10 years of ownership to an end. She is thought to want a 10 percent stake in the club if a deal can be agreed with PIF, which would be the majority partner. The takeover would be Saudi Arabia’s latest venture into sports investment.
Ms Staveley helped broker the purchase of Manchester City by Sheikh Mansour in 2008 and it was reported that she led Dubai International Capital’s £400m bid for Liverpool in 2008.
Newcastle United has been up for sale for a number of years. In 2017, Staveley’s firm PCP Capital Partners made an offer for it for a reported £250 million but the talks broke down.
Last year, Newcastle United was rumoured to be on the brink of being bought by Abu Dhabi billionaire Sheikh Khaled bin Zayed Al Nahyan, but that deal did not go ahead either. The Bin Zayed Group, representing the UAE billionaire was thought to have agreed terms for a takeover at Newcastle last year but it failed to happen.
Around a third of English football clubs are under foreign ownership. Rival Premier League club, Sheffield United, are owned by Saudi Prince Abdullah bin Mosaad bin Abdulaziz Al Saud, who took full control from Kevin McCabe last year.
Other English Premier League (EPL) clubs Arsenal, Liverpool and Manchester United are all owned by Americans while Manchester City is owned by the Abu Dhabi United Group.
