A New King in the Castle
The takeover of Newcastle Unied was finalised on 7th October 2021, with Saudi Arabia’s Public Investment Fund (PIF) now having an 80% stake in the club. The Chairman of the PIF is Crown Prince Mohammed bin Salman and the PIF acts as a savings account for the government of Saudi Arabia.
The deal came after bans on beIN Sports broadcasting had been lifted in Saudi Arabia, a region where piracy has caused great loss to the media group in the past. The £300 million deal now leaves Newcastle the richest football team in the world.
With its poor track record for human rights and other teams’ fears about a foreign investor who doesn’t have to answer to anyone, the crowning of Newcastle’s new owners has been met with a lot of criticism.
From inside the Premier League
According to reports, all 19 Premier League teams stand united in their opposition to the takeover, and have called for a meeting to discuss the legitimacy of the process of the handover to the PIF. They believe that they were kept in the dark and remain unconvinced of the takeover satisfying legislative demands.
Criticism from other teams may also stem from the fear of increased competition— which as an isolated concern, might not be the worst thing for the sport. However, it is very likely that the next transfer season will see an even further hike in transfer prices and wages, as the possibility of Newcastle’s newfound wealth will be the elephant in any negotiation room.
From Outside the Premier League
The Premier League has made steps to be more inclusive, with players wearing rainbow laces and ‘No Room for Racism’ badges. In this light, allowing the Saudi Arabian state to almost directly assume ownership of a Premier League club has brought condemnation from the LGBTQ+ community, and human rights groups, including Amnesty International.
The criticism stems from their track record of mistreatment of women and the LGBTQ+ community. The takeover is said to be an attempt for the state to better their international image through ‘sportwashing’. It is also said that this is a clear example of how the sport is susceptible to corruption and can easily be bought by the highest bidder.
Additionally, concerns have been raised about the involvement of the state in both the running of the club and how they will further their interests in the region. The Premier League has secured “legally binding assurances” that there will be no direct involvement of the crown in the running of the club.
Critics do not believe in the credibility of these assurances.
What does Saudi Arabia gain from the bargain?
The PIF primarily earns its income from oil, which has certainly helped every meme account on Twitter, Facebook, and Instagram add Newcastle United to their list of oil money clubs, joining the likes of Manchester City and Paris Saint-Germain.
The PIF is looking to diversify its sources of income, which includes income directly generated by the club as well as the indirect foothold it gives the PIF to interact with stakeholders in the region.
The Saudi Arabian government will also see a positive change in their reputation abroad, as signalled by the mass support the takeover has seen from the fans of the club, who herald this change as the dawn of a new era for Newcastle.
This change will lend credibility to the accusations of ‘sportwashing’.
The takeover of Newcastle United raises a lot of questions in the world of football. What impact will the takeover have on the transfer market and on wages?
Will we see more changes in ownership with the goal of ‘sportswashing’? Will the screening of potential owners expand to include metrics about human rights?
How will the Premier League move forward with the dichotomy between their inclusivity programs and the signing off on this deal?