NEWCASTLE’S proposed £300million Saudi backed takeover is OFF – 17 weeks after paperwork was first lodged.
The Saudi consortium fronted by Amanda Staveley has pulled out of the deal, blaming the prolonged process and the current circumstances relating to coronavirus.
Newcastle’s proposed £300m takeover is OFF
Contracts were exchanged on the deal 17 weeks ago but now the Saudi Public Investment Fund (PIF), PCP Capital Partners and the Reuben Brothers have withdrawn from the process to buy the Magpies from Mike Ashley.
A statement read: “With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
“We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position its history, tradition and fans merit.
“Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club’s owners expired and our investment thesis could not be sustained.
“Particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.
“Time itself became an enemy of the transaction, particularly during this difficult phase marked by the many real challenges facing us all from Covid-19.”
CRUSHING BLOW
The news will come as a crushing blow to many of the Toon Army who have watched on nervously for four months with the Premier League failing to give a final decision.
There had been reports of a huge summer transfer splurge if the deal had gone through, with world class players set to arrive on Tyneside.
The Saudi PIF was vying for an 80 per cent stake, but The Telegraph reported earlier this week the deal had reached “deadlock due to concerns over the new ownership structure.”
The Saudi PIF tried to convince the Premier League that those involved in the bid were not linked to the Saudi state.
But while the buyers believed they had answered all of the questions, the Prem were not satisfied with the responses, leaving the process gridlocked.
Today’s statement from the group continued: “We feel great compassion for the Newcastle United fans with whom we shared a great commitment to help Newcastle United harness its tremendous potential and build upon its impressive and historic legacy while working closely with the local community.
‘WE ARE SORRY IT IS NOT TO BE’
“We would like to say that we truly appreciated your incredible expressions of support and your patience throughout this process. We are sorry it is not to be.
“Unfortunately the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.
“We wish the team and everyone associated with it much good luck and success.”
SunSport reported on Sunday how supporters’ mental health has been affected as they pray for the end of Ashley’s 13-year reign.
Prem chief Richard Masters said four weeks ago that he would like to see a resolution “shortly”.
The takeover – with Staveley and the Reuben brothers in for 10 per cent stakes each – has been dogged by trouble from the outset.
A number of charities called for it to be blocked because of human rights abuses committed by Saudi Arabia
The Gulf state has also been embroiled in a piracy row with Qatar, with the Prem previously trying to take legal action against Saudi Arabia for illegally steaming of top-flight matches throughout the kingdom.
The consortium – who have been confident throughout- paid Ashley a £17m non-refundable deposit, which he stands to pocket now the deal is off.
It is also claimed that Ashley has been in talks with American Henry Mauriss since the beginning of July.
Mauriss launched his own bid last month and denied to SunSport that he is being secretly backed by Qatar.
Amanda Staveley was fronting the dealCredit: PA:Press Association
The Saudi Public Investment Fund is the financial arm of crown prince Mohammed bin Salman’s Saudi stateCredit: Reuters
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