In a recent interview on the topic of Newcastle United’s takeover by Saudi Arabia’s sovereign wealth fund, the Premier League has expressed confidence that the legality of the acquisition remains intact despite allegations linking Crown Prince Mohammed bin Salman to the deal.
The Premier League is not planning to revisit the approval of the £305 million takeover, following leaked WhatsApp messages from Amanda Staveley, a former minority co-owner of Newcastle. These messages, obtained by the Telegraph, suggest that the buyout depended on Bin Salman’s approval, as he is considered the kingdom’s de facto leader. While the league received “legally binding assurances” that the Saudi state would not exercise control over Newcastle, officials believe those assurances still stand.
When contacted for comment, the Premier League declined to provide specific statements. However, sources indicate that the league maintains a firm belief in a clear distinction between the Saudi state and the management of Newcastle, despite Bin Salman’s role as chairman of the Public Investment Fund (PIF).
Staveley’s messages also shed light on the UK government’s supportive stance regarding the takeover, but there is no indication that the Premier League was swayed by political considerations. The external influences reportedly had no bearing on the owners and directors’ test process or its outcome.
While foreign nations are permitted to own Premier League clubs, concerns over Saudi Arabia’s human rights record have stirred unease, especially following a CIA report implicating Bin Salman in the murder of journalist Jamal Khashoggi in 2018—a claim he has consistently denied. Through her legal representatives, Staveley clarified that her references to Bin Salman were strictly in his capacity as PIF chairman.
The PIF currently holds an 85% stake in Newcastle, with the British billionaire Reuben Brothers controlling the remaining 15%. Staveley played a vital role in facilitating the deal between Newcastle’s former owner, Mike Ashley, and the PIF. She initially held a 10% share but exited the board in July.
In related news, Premier League clubs are scheduled to meet on Tuesday to discuss potential updates to the league’s financial regulations, prompted by a legal challenge from Manchester City. The clubs will debate the positioning of shareholder loans within the league’s associated party transaction rules, following an arbitration panel’s indication that excluding such loans may have violated competition law. Manchester City has accused the league of “misleading” them regarding the implications of a judgment released on October 7, interpreting it as invalidating all associated party transaction regulations.
Despite the Premier League’s request for clarification from the arbitration panel regarding the judgment’s consequences, their initial understanding of the ruling appears to differ significantly, creating a state of confusion. The associated party transaction regulations are designed to ensure that commercial agreements between clubs and entities linked to their ownership are conducted at fair market value, aiming to prevent artificial inflation of contracts to circumvent profit and sustainability regulations.
