Legal experts reveal what Mike Ashley's Newcastle United takeover move really means

Ashley’s legal representatives Dentons have turned to two top QCs to exploit ‘cracks’ in the Premier League owners’ and directors’ test in hope of pushing through the Saudi deal.

On Monday London law firm Blackstone Chambers issued a statement revealing their intention to represent Ashley and Newcastle in their lengthy battle against the Premier League.

It read: “Shaheed Fatima QC and Nick De Marco QC are acting for Newcastle United FC and Mike Ashley (instructed by Dentons) in a dispute with the Premier League about its rejection of a takeover bid made by PCP Capital Partners, the Reuben Brothers and the Public Investment Fund of Saudi Arabia (PIF) based on its Owners and Directors test.”

And another London-based law firm Howard Kennedy have offered their take on what this move really means for the Premier League, Ashley, the owners’ and directors’ test, potential court action and most importantly Newcastle United.

In a statement, released to the Gazette, they explain: “It has emerged that Mike Ashley and Newcastle United have hired Blackstone Chambers in a bid to prove that the Premier League’s owners’ and directors’ test was not properly applied when the league blocked the club’s sale to the Saudi-led consortium.”

Joel Leigh, a partner at the firm, added: “This planned action tells us that the Premier League did make a formal determination that the Saudi consortium’s bid could not proceed without further interrogation of leading members of the Saudi Arabian Government, as distinct from the Public Investment Fund of Saudi Arabia, under the owners' and directors’ test. Otherwise Ashley would have nothing to dispute.

"This fact had been assumed but is confirmed by this intended appeal.

"This is about one thing only – clearing a path to get the Saudis back to the table.”

Leigh continues: “Though Mike Ashley and Newcastle United are the ones bringing the action, no doubt they have the tacit backing of the Saudi bidders, who whilst keen to avoid negative publicity, will be keen to see the action succeed.

"This move tells us that if a deal can be resurrected, the Saudi bidders remain keen to do a deal.”

Where does the deal stand?

That’s the million pound question.

In reality, the deal has moved very little in recent weeks despite some intense lobbying behind-the-scenes.

Political pressure from the very top has been exerted in the last few weeks as backroom negotiations have continued between the Premier League and the consortium via various intermediaries, the club and at times directly.

Fresh documentation has been submitted to the league in a bid to satisfy their demands for the consortium to pass the owners’ and directors’ test but it seems as though these attempts have fallen on deaf ears.

What next for the deal?

Some people may feel this deal is dead but the fact of the matter is talks continue to attempt to resurrect it in some form. The preferred form is for it to remain as it stands.

Talk of dividing the club up 50% new owners and Ashley retaining a stake are well wide of the mark and in truth would make little to no financial sense.

The Gazette understands the Saudis have come back to the table for negotiations on getting the deal back on track but would only truly return to the owners’ and directors’ test, the conduct of which has drawn a huge sense of frustration from the kingdom, if they would be passed.

The Premier League have seemingly remained firm in their belief the Saudi state must be named as ultimate overlord and want key figures out through the regulatory test. This is very much seen as a bridge or ten too far for PIF and leading Saudi figures, who have given written assurances that the sovereign wealth fund and its day-to-day practice are completely autonomous from the likes of chairman only in name Mohammed Bin Salman.

From Ashley’s perspective, he now has his ducks in line re legal action against the Premier League – but any action would be costly and time-consuming, something I’d imagine all, including the Premier League, would favour avoiding.

What has Mike Ashley said about it?

“Newcastle United can confirm that the Premier League has rejected a takeover bid made by PCP Capital Partners, the Reuben Brothers and the Public Investment Fund of Saudi Arabia (PIF) based on its Owners and Directors test.

"This conclusion has been reached despite the club providing the Premier League with overwhelming evidence and legal opinions that PIF is independent and autonomous of the Saudi Arabian government.

"The club and its owners do not accept that Premier League chief executive Richard Masters and the Premier League have acted appropriately in relation to this matter and will be considering all relevant options available to them.

"Mike Ashley understands fans’ frustrations and would like to reassure them that he has been fully committed to ensuring this takeover process reached completion as he felt it was in the best interests of the club. Mike continues to be fully supportive to Steve Bruce, the players and all the staff and wishes them well for the upcoming season."

Who are the legal team representing Ashley?

De Marco is, according to his employer's website, blackstonechambers.com, "one of only two barristers in England with a practice exclusively in sports related disputes" and "is ranked as one of the leading barristers in Sports Law".

His past clients have included Premier League sides Manchester United, Manchester City, West Ham United, Leicester City and Aston Villa as well as acting on behalf of England internationals Harry Kane, Jordan Henderson and Jamie Vardy and ex-United heroes Peter Beardsley, Andy Cole and Jonas Gutierrez. Controversial world heavyweight champion Tyson Fury and equally out-spoken European 'super agent' Mino Raiola have also used his services.

Fatima’s expertise comes in the fields of “commercial law, civil liberties/human rights, public law/regulatory law and public international law”, according to her profile on the chambers’ website.

It continues: “Many of her cases involve an international dimension and aspects of either conflict of laws or public international law.”

Her previous clients include the states of Bahrain, Cyprus, Iran, Rwanda, Russia and the UK as well as the likes of Amnesty, Justice, Liberty, Redress, the UN Refugee Agency, World Bank Group, Miramax; Royal Mail and Volkswagen.

She has also worked on behalf of the UK Foreign and Commonwealth Office, Home Office, Treasury and Prince Abdul Aziz of KSA.

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