Unlock the Editor’s Digest for free
Saudi Arabia’s Sovereign Wealth Fund and Reuben Brothers Strengthen Grip on Newcastle United Football Club
The Public Investment Fund (PIF) of Saudi Arabia and the Reuben brothers’ RB Sports & Media have made a significant move in their ownership of Newcastle United football club. They are purchasing the minority shareholding held by British dealmaker Amanda Staveley’s PCP Capital Partners.
Deal Details
Newcastle United announced on Friday that PIF and RB Sports & Media would be acquiring the shares held by PCP Capital Partners. This deal would leave PIF with approximately 85% ownership of the club, while the Reuben brothers would hold the remaining 15%.
Amanda Staveley’s Departure
Amanda Staveley’s departure from the ownership group marks an important moment for the Premier League club. She had played a crucial role in facilitating the £305mn takeover of Newcastle United from British retail magnate Mike Ashley in October 2021. Her husband, Mehrdad Ghodoussi, had also appeared in an Amazon series about Newcastle alongside PIF governor Yasir Al-Rumayyan.
What’s Next for Staveley
A person close to Staveley has stated that she is likely to remain involved in football. Staveley and her husband have been involved in a costly legal dispute with Greek shipping magnate Victor Restis, which has resulted in a £3.5mn bill.
Al-Rumayyan’s Statement
PIF governor Yasir Al-Rumayyan has wished the departing shareholders well and stated that the ownership group will "continue to build on these foundations for long-term, sustainable success for the team."
The Reuben Brothers’ Involvement
The Reuben brothers’ involvement in Newcastle United is part of their growing portfolio of sports-related investments. They have previously invested in businesses such as Formula 1 and Wimbledon tennis.
The Future of Newcastle United
Under PIF’s ownership, Newcastle United has experienced significant growth, including a nearly 40% increase in revenue to £250mn during the 2022-23 season. The club has also qualified for the Uefa Champions League at the end of the season. Despite stricter regulations in European football, PIF has invested heavily in the club, with a majority owner managing assets worth $925bn.
Challenges Ahead
While PIF’s acquisition of Newcastle United has brought financial success, the club still faces challenges ahead. The Premier League has implemented new rules to limit the influence of foreign investors on club decisions, and PIF has been subject to increased scrutiny over its involvement in the club.
Conclusion
The sale of PCP Capital Partners’ shares to PIF and RB Sports & Media marks a significant development in the ownership of Newcastle United. The deal leaves PIF with a majority stake in the club, and while Staveley’s departure may be seen as a setback, it is unlikely to affect the club’s future success.
FAQs
Q: What does this deal mean for Newcastle United?
A: The deal means that PIF will have a majority stake in the club, while the Reuben brothers will hold a 15% stake.
Q: Why is Amanda Staveley selling her shares?
A: Staveley’s reasons for selling her shares are not publicly known, but it is reported that she may remain involved in football in the future.
Q: What does this deal mean for the Premier League?
A: The deal highlights the growing influence of foreign investors in English football and the need for stricter regulations to protect the integrity of the game.
Q: What is the future of Newcastle United under PIF’s ownership?
A: The club has experienced significant growth under PIF’s ownership, but it still faces challenges ahead, including the need to comply with stricter regulations and attract top talent to the team.
Q: Will PIF continue to invest in Newcastle United?
A: As a majority owner, PIF has already invested heavily in the club and is likely to continue to do so in the future.
Author: www.ft.com
Orginal Source link