Newcastle United Champions League rivals confirm £2.2bn takeover after £250m PIF stadium mega-deal
One of Newcastle United’s Champions League rivals have been subject to a £2.2billion takeover this past week.
Newcastle United hosted La Liga giants Atletico Madrid at St James’ Park in pre-season, losing 2-0.
The two clubs share several connections as they both aim to reach the Champions League knockout stages this season while being bolstered by money linked to the Saudi Arabian Public Investment Fund.
The PIF is one of the largest sovereign wealth funds in the world, valued at around £870billion. Newcastle’s majority takeover by PIF in 2021 handed the club the title of the ‘richest in the world,’ though the reality is quite different, given the various financial rules and regulations that must be adhered to.
PIF sponsorship with Atletico Madrid
Last year, PIF company Riyadh Air agreed a nine-year deal for the naming rights of Atletico Madrid’s Metropolitano Stadium. The deal is reported to be worth around £250million to the club. Riyadh Air also sponsor Atletico’s first-team kits.
Newcastle are also sponsored by PIF-owned company Sela, having agreed a multi-year sponsorship deal in 2023 worth around £25million a season.
After agreeing a major sponsorship deal with a PIF company, Atletico have now been taken over by one of the wealth fund’s financial rivals.
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Atletico Madrid takeover complete
Last week, leading private equity firm Apollo completed a majority takeover of Atletico Madrid for £2.2billion. Apollo claims its overall assets are worth a total of £690billion, making Atletico the second richest club in Europe behind Newcastle, based on owner wealth at least.
A statement released by Atletico read: “Atlético de Madrid to Welcome Apollo Sports Capital as Majority Shareholder.
“The Club and leading global sports investor form long-term partnership to support continued growth under CEO Miguel Ángel Gil and President Enrique Cerezo.
“Atlético de Madrid and its major shareholders – Miguel Ángel Gil, Enrique Cerezo, Quantum Pacific Group and Ares Management funds – have reached an agreement for Apollo Sports Capital (‘ASC’), the global sports investment company of Apollo (NYSE: APO), to become the Club’s majority shareholder.
“As part of the agreement, Mr Gil and Mr Cerezo will continue to lead Atlético de Madrid as Chief Executive Officer and President, respectively, and will remain shareholders, ensuring continuity of vision and leadership.
“Over the last two decades, Atlético de Madrid has become one of Europe’s most successful and recognized football institutions under Mr Gil’s and Mr Cerezo’s stewardship, achieving sustained sporting success, global brand growth and a strong community presence. The investment by ASC will reinforce the Club’s position among football’s elite and support its ambition to deliver long-term success for millions of fans worldwide.
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“As long-term investors, ASC and the existing shareholders will partner with Atlético de Madrid’s management to enhance the Club’s financial strength, sporting competitiveness and community impact.
“Chief Executive Officer of Atlético de Madrid Miguel Ángel Gil said: “We are very proud to welcome a committed new partner to the club. Apollo Sports Capital is a powerful ally who respects the history, traditions and defining identity of Atlético de Madrid and its fans, while bringing additional strength and enthusiasm to help maintain our growth and competitiveness.”