The Premier League sees no reason to review the legality of Newcastle United’s takeover by Saudi Arabia’s sovereign wealth fund after reports of crown prince Mohammed bin Salman’s extensive involvement in the deal.
Leaked WhatsApp messages from the former Newcastle minority co-owner Amanda Staveley obtained by the Telegraph suggest the buyout hinged on the approval of Bin Salman, the kingdom’s de facto leader. Although the £305m takeover led by Saudi’s Public Investment Fund in 2021 was approved only once the Premier League received “legally binding assurances” that the Saudi state would not control Newcastle, it is understood the governing body will not be re-examining its legitimacy.
The Premier League declined to comment when contacted by the Guardian but it is understood that, despite Bin Salman’s position as the PIF chairman, the league remains convinced there is, and has always been, a clear separation between the Saudi state and those in charge of Newcastle.
While Staveley’s leaked messages also highlighted the UK government’s enthusiasm for the takeover’s potential approval, it is understood the Premier League was not influenced by any political agenda. Moreover, such external influences had no effect on the application or outcome of the owners and directors test.
Although foreign states are not banned from owning Premier League clubs, the kingdom’s less than pristine human rights record prompted serious misgivings about Saudi ownership, particularly as a CIA report concluded Bin Salman was responsible for ordering the murder of the Washington Post journalist and Saudi dissident Jamal Khashoggi in Istanbul in 2018. Bin Salman has always denied personal involvement. Through her lawyers, Staveley told the Telegraph she only ever referenced Bin Salman in his capacity as chairman of the PIF.
The sovereign wealth fund holds an 85% stake in Newcastle with the remaining 15% controlled by the British billionaire property developers Reuben Brothers. Staveley, a key catalyst in brokering the agreement between Newcastle’s former owner Mike Ashley and the PIF, initially took a 10% holding but sold up and stepped down from the board in July.
Meanwhile, Premier League clubs will meet on Tuesday to discuss changes to the top tier’s financial regulations following a legal challenge by Manchester City.
Clubs are to debate where shareholder loans sit within the league’s associated party transaction rules after an arbitration panel indicated that, in excluding such loans, they breached competition law. City accused the league of “misleading” clubs about the precise meaning of the judgement, published on 7 October, and have interpreted it as rendering all APT rules void.
Although the Premier League has sought clarification from the arbitration panel over the implications of the judgement, its initial reading of that verdict was very different and a high degree of confusion remains.
APT regulations aim to ensure commercial deals between clubs and entities linked to their ownership are completed at fair market value (FMV), thereby preventing such contracts from being artificially inflated in order to boost revenue and circumvent profit and sustainability regulations.
