Newcastle United FC‘s Saudi Arabian owners are contemplating the acquisition of another top European football club as Saudi Arabia gears up for increased sports spending, Bloomberg reported citing sources with knowledge of the matter.
The country’s Public Investment Fund (PIF) had initially focused on adding smaller teams to its football portfolio, but it has now shifted its attention towards potentially purchasing a club from one of Europe’s major leagues.
This adjustment follows a recent announcement by UEFA, the governing body of European football, stating that clubs with the same owner will be permitted to compete in its elite competitions.
The decision has prompted PIF to reconsider its approach, with the source revealing that the owners of English Premier League clubs Brighton & Hove Albion FC and Aston Villa FC, as well as France’s Toulouse FC, were granted UEFA approval to participate in the upcoming tournaments after implementing measures to ensure independent management.
Saudi Arabia’s PIF eyes Newcastle United acquisition
The landscape of football ownership has experienced significant changes as wealthy investors from the United States and the Middle East seek greater involvement in the world’s most popular sport.
Multi-club ownership has become increasingly prevalent, as proponents highlight cost savings through data and player sharing, as well as the potential for more lucrative commercial agreements.
PIF, alongside minority investors Jamie Reuben and Amanda Staveley, orchestrated a takeover of Newcastle United in 2021, investing over £300 million ($391 million) in the Premier League club.
Subsequently, significant financial resources have been injected into the team, leading to their qualification for the prestigious Champions League for the first time in two decades.
While Newcastle United’s owners have explored potential targets, including Belgium’s KV Oostende, they have been awaiting clarity on UEFA’s stance regarding multi-club ownership before proceeding with any new acquisitions.
The acquisition of Newcastle United stands as one of Saudi Arabia’s most prominent sporting investments to date.
The kingdom has prioritised sports as a crucial component of its economic diversification and tourism promotion initiatives.
In recent weeks, Saudi Arabia has taken significant measures to strengthen its domestic football league by acquiring local teams and attracting international stars, including several from the Premier League, through substantial financial incentives.
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