Premier League waited NINE weeks to drop Newcastle United takeover bombshell
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Top flight chiefs failed to bring to light their problem with the Saudi state not being named as the true majority shareholder until more than TWO months into their checks on the KSA-led consortium. Premier League tests normally only take between two to four weeks to complete.
The Public Investment Fund of Saudi Arabia, Reuben Brothers and PCP Capital Partners agreed a deal with Mike Ashley in early April, with all the relevant documentation submitted for regulatory approval on or around April 9.
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Hide AdAnd while the buyers-in-waiting and the seller – Mike Ashley – were given repeated assurances the deal would likely pass, they were hit with fresh questioning on whether the Kingdom of Saudi Arabia, de facto ruler Mohammed bin Salman and the nation’s ruling elite would exert influence over those named as directors, and ultimately shape the future of Newcastle United. It is believed these queries first came to light in June.
The Premier League were aware of the PIF 80% stake acquisition from day one of their owners’ and directors’ test process.
Raising the issue was seen as an unprecedented, unexpected step taken by Richard Masters and his Premier League board and one which has brought criticism from the buyers who are understood to have provided written assurances from the highest body in Saudi Arabia’s Royal Court that there would be no interference from the state in the running of the club. This is something the Premier League doubted in their response to Newcastle central MP Chi Onwurah on Friday.
They said: “The Premier League Board made a clear determination as to which entities it believed would have control over the Club following the proposed acquisition, in accordance with Premier League Rules.
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Hide Ad"Subsequently, the Premier League then asked each such person or entity to provide the Premier League with additional information, which then would have been used to consider the assessment of any possible disqualifying events.
"In this matter, the consortium disagreed with the Premier League’s determination that one entity would fall within the criteria requiring the provision of this information.
"The Premier League recognised the dispute, and offered the consortium the ability to have the matter decided by an independent arbitral tribunal if they wished to challenge the conclusion of the Board.
"The consortium chose not to take up that offer, but nor did it procure the provision of the additional information.”
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Hide AdThis request to have a number of high ranking, non-PIF members of the Saudi state put through the owners’ and directors’ test was knocked back by KSA – and resulted in a lengthy impasse, which ultimately caused the breakdown of the £300 million deal to buyout wantaway Sports Direct tycoon Ashley.
Despite all three parties collectively withdrawing their bid from the Premier League table, there remains a confidence compromises can be found and the deal resurrected.
One such route is the threat of legal action – which is something not only Ashley is considering, but is also on the radar of the three buyers within the consortium, as well as a fan group Wor Fund.
Ashley is understood to remain 100% committed to getting the Saudi deal over the line, with the retail magnate desperate to redistribute the profits of his NUFC sale into his business empire. And it is for that reason Ashley, along with his close advisor Justin Barnes, are not entertaining any other bids from interested parties – including the £280 million one on the table from the Bellagraph Nova Group – unless any bid would represent a profit on the deal brokered with the Saudis, PCP and the Reubens.