The inside story on how Newcastle United became a takeover target for the Public Investment Fund of Saudi Arabia

The chances of Saudi Arabian investment in Newcastle United has faded in recent weeks but the interest was not some fantasy, it was, and faintly remains, very real.
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Fans are quick to label any takeover talk at United as ‘fake news’ or ‘clickbait’ and while their sentiments get no traction here, there is significant justification for their scepticism.

American ‘buy now, pay later’ schemes, Peter Kenyon’s begging bowl, Amanda Staveley x2 and the Sheikhs from last summer – it’s three years of takeover talk and little to no action, which has culminated in a collective fan adoption of the ‘denial’ approach.

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The Gazette reported this week that the Public Investment Fund of Saudi Arabia, who led a consortium with property and investment company Reuben Brothers as well as Staveley, have cooled their interest in United and could well turn their attentions to another Premier League club, likely Manchester United.

Saudi Arabia's Crown Prince Mohammed bin Salman (L) attends a meeting with Russia's President Vladimir Putin on the sidelines of the G20 Summit in Osaka on June 29, 2019. (Photo by Yuri KADOBNOV / POOL / AFP)        (Photo credit should read YURI KADOBNOV/AFP via Getty Images)Saudi Arabia's Crown Prince Mohammed bin Salman (L) attends a meeting with Russia's President Vladimir Putin on the sidelines of the G20 Summit in Osaka on June 29, 2019. (Photo by Yuri KADOBNOV / POOL / AFP)        (Photo credit should read YURI KADOBNOV/AFP via Getty Images)
Saudi Arabia's Crown Prince Mohammed bin Salman (L) attends a meeting with Russia's President Vladimir Putin on the sidelines of the G20 Summit in Osaka on June 29, 2019. (Photo by Yuri KADOBNOV / POOL / AFP) (Photo credit should read YURI KADOBNOV/AFP via Getty Images)

And while their interest is not dead, at this stage, it looks unlikely PIF will be putting cash in Mike Ashley’s coffers and rocking up on Tyneside any time soon.

But how did the Magpies land on the radar of the kingdom’s sovereign wealth fund?

Here’s the inside story of how an unlikely fixer from the USA, Carla DiBello, defied cultural and business boundaries to propose the £340million buyout of Newcastle United, to an elite group of men with the power to invest hundreds of billions at their disposal.

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The Wall Street Journal’s Justin Scheck, who broke the story of the Saudi’s initial interest back on January 25, explains how DiBello confidently broke down barriers to bring United into Saudi consciousness.

Scheck explains: “For a number of years, the Saudi sovereign wealth fund was known to want to buy a soccer team. And then one day in early 2019, the head of the fund Yasir Al-Rumayyan told some of his deputies to take a meeting. A meeting with Carla Di Bello.”

In a society very much still in the patriarchy mould, former Kardashians producer DiBello showing up at a room reserved for high-power men, was a shock to the system – her proposal was even more of a surprise to those present, according to Scheck.

“Carlo Di Bello shows up in the Riyadh office of the Saudi sovereign wealth fund and a couple of senior executives are told they are to meet with her. All they knew was that she had been a reality TV producer,” he continued.

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“Di Bello and a representative were there to present a soccer team, Newcastle United (as an investment opportunity).

“They pitched a deal - the Saudis would buy a football team for about $445million dollars. As part of bringing that deal to the fund, Di Bello and her associate would help run the team and get paid for their services, as well as an ownership stake.”

The deal itself, according to Scheck, is something that was of interest to the Saudis, but, as with all financial deals, the devil is in the detail.

“The way it was described to us was that she was confident, but when asked for financial details, she was unable to present any,” said Scheck, hinting at cracks in talks at the very earliest of stages.

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“When asked about basic things like financial returns and it was like 'oh we can discuss that later'. These guys got the sense they were meeting with someone who did not contribute much value to the deal, other than being the person who brought it to them.”

Interestingly, while not named, DiBello’s associate is understood to be British-born financier Staveley, who played a minor role in the Manchester City takeover by Emirati royal Sheikh Mansour.

Scheck goes on: “The Saudi sovereign investment fund is one of the highest profile investors in the world - they do not need a middle-man to get a meeting with anyone. If you want money, or don't, if PIF calls, any company will meet with them.

“So the notion that someone who doesn't really have much finance experience, could bring value just by scheduling a meeting is somewhat dubious.

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“To them that is at odds with the stated purpose of the PIF, which is to create a westernised, internationalised business in Saudi Arabia.”

Of all the colourful figures in this latest round of interesting, yet tiresome takeover talks, DiBello definitely stands out as one of the most intriguing.

The Florida-native, with little to no business experience or obvious educational background, is a reported friend of Kim Kardashian West, as mentioned an ex-reality TV producer and is rumoured to have links to some very sketchy figures in the Middle East dating back decades.

Her emergence as a player in the Saudi halls of power has also brought criticism, with DiBello seen as a key driver of investment of the kingdom’s wealth, with the ear of not only Al-Rumayyan, but also Crown Prince Mohammed bin Salman.

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“Her lawyer told us she is close to him and his family,” said Scheck of DiBello and Al-Rumayyan’s relationship.

“Whatever the personal relationship, it can be problematic when it comes to making a deal. If I, as head of a sovereign wealth fund, am making a deal with a friend or someone close on the other side of it, it is possible I am taking into account the interests of my friend as well as the fund.

“The fund has not been performing that well. Some of its biggest bets – Uber hasn't done great. There is increased scrutiny of Al-Rumayyan. When it is not doing so well it raises questions marks, like the relationship with Di Bello.

“There is this troubling sense that she is capitalising on a personal relationship to make money. There is a tension in Saudi Arabia about this.”

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While the United baton may never be passed from Ashley to Al-Rumayyan, this has, at least, provided another curious, engrossing, nauseating chapter in the seemingly never-ending Newcastle United takeover tale.