Sources announced via ESPN on Thursday that a Saudi Arabian-led financial takeover of Newcastle United is expected to be completed within the next 48 hours. The new owner, Saudi Arabia’s Public Investment Fund, will complete a buy-out from Mike Ashley for a fee of £300 million.
While an agreement was initially reached in April 2020, an 18-month deadlock saw the deal postponed. At the time, the PIF failed to pass the Premier League’s owners’ and directors’ test. This stumbling block has since been overcome following intensive talks over the past few weeks.
The Premier League released the following statement regarding the deadlock: “The Premier League, Newcastle United Football Club and St James Holdings Limited have today settled the dispute over the takeover of the club by the consortium of PIF, PCP Capital Partners and RB Sports & Media. Following the completion of the Premier League’s Owners’ and Directors’ Test, the club has been sold to the consortium with immediate effect.”
Once the agreement takes effect, the PIF will take 80% ownership of the club, with private equity firm Reuben Brothers holding a 10% stake and British businesswoman Amanda Staveley holding the remaining 10% as payment for brokering the deal.
This financial takeover has attracted much speculation from fans and pundits alike, particularly with regards to the potential purchasing of big name players as well as the future of current manager Steve Bruce.
