Momentum builds on Newcastle United takeover with 'all guns aimed at Premier League' after arbitration leaks

Sources close to the deal believe the last few weeks have represented 'the calm before the storm' with Ashley and his legal team's 'guns all aimed at the Premier League'.

The Magpies have not revealed the exact points their arbitration hearing against the top flight covers, as they are bound by confidentiality.

Details of the club's legal action against the Premier League leaked last month in a letter to Newcastle Consortium Supporters Ltd, who have threatened their own action.

In November, the Gazette exclusively revealed the Premier League, in their legal response to NCSL's action, officially confirmed United are already in a legal dispute with the governing body with regards the stalled Public Investment Fund of Saudi Arabia, Reuben Brothers and PCP Capital Partners buyout of the football club.

While the legal action by Ashley and his prominent Blackstone Chambers QCs Nick De Marco and Shaheed Fatima was widely speculated on prior to this, it was never confirmed by the club itself, nor the Premier League.

That EPL leak angered many close to the deal.

What is understood to have poured further fuel on the flames for those close to the deal are leaks of the exact nature of the arbitration on social media.

The tweets in question refer to the "club’s case into the conduct of the O&D Test".

It is understood the tweets, sent on November 17, have been retained as evidence in both cases against the Premier League.

It is our understanding the leaks, quoted to be from "a Premier League source" are accurate – and that Ashley and his team of QCs are fighting to, according to sources, 'take down' the Premier League's owners' and directors' test.

This action is NOT being conducted simply for compensation. Those close to the deal insist Ashley wants this deal pushed through by the Premier League, with the view that Newcastle United's new owners-in-waiting did not get a fair hearing, especially compared to other deals waved through by the top flight board.

Evidence is believed to have been compiled about how takeovers at the likes of Manchester City have been treated differently to Newcastle United's by the Premier League, how changes to structures at Crystal Palace raise questions, as well as the decision to pass Wolverhampton Wanderers' owners following their promotion from the Championship.

The evidence is understood to relate to Abu Dhabi royal family influence and sponsorship links to Manchester City as well as Chinese governmental influence on Fosun, Wolves' owners.

With Palace, the exact ownership – and ultimately influence – is unknown, with Palace Holdco LP, a limited partnership registered in Delaware (USA), holding a 67.5% majority stake. Delaware companies do not legally have to reveal their exact ownership or shareholding.

On this subject, which has been investigated by NCSL as part of their case, Keith Patterson, one of the company’s directors, said: “It seems to be considered acceptable for some clubs to disguise their nominations, but others, like our consortium appear to be prevented from providing bona fide upfront, legally supported, nominations.”

Ashley, and those around him, are thought to be keen to see this legal action through, having received assurances from the buyers.

The consortium have relayed to Ashley they remain very keen to buy Newcastle United, for the agreed price, thought to be higher than the original £300 million quoted, but less than £350 million.

While many question why PIF – who would buy an 80% stake in the club – have not made any public statement about the state of play, it is understood the sovereign wealth fund do not want to be involved in any legal or public slanging match with regards this deal.

They will, we understand, walk back to the table when paths to a deal have been cleared.

Talk of restructuring the deal to a model more like Man City, Wolves or even Palace has been floated to the buyers, but, at this stage, played down as PIF want to walk through the front door at St James's Park, not through a side one.

The significant obstacle preventing progress with the Premier League revolves around separating the Saudi state and the nation's sovereign wealth fund, PIF.

The Gazette understands Newcastle United believe they have handed over legal proof that the two are separate and have satisfied the requirements of the Premier League owners' and directors' test.

We have learned PIF briefs also told the Premier League they could prove the separation in the summer – and sent documentary evidence, as it is written in Saudi law – but those requests are understood to have fallen on deaf ears.

When contacted, the Premier League refused to comment on the allegations.

NCSL’s Patterson commented: “Clearly we believe there is more to this than meets the eye.

"We have multiple letters from MP’s saying the government cannot get involved. Then we see redacted freedom of information documents evidencing involvement. We hear this is the only time the EPL have ever held a series of government meetings on an ODT application. Why would that be?

"And above all NCSL are told by EPL’s solicitors – Bird & Bird – to queue up behind a club action, which was supposed to be highly confidential. The fans of this club have waited long enough.

"Surely now is the time for our government to make this Premier League charade a matter of public importance for football in general and to the fans and businesses in Newcastle to show exactly what is going on.

"We all remain confident if it were to be made public then the takeover would not be delayed any longer.”

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