Mohammed bin Salman (1985- )

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      Saudi-Led Group Completes Purchase of Newcastle United

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      The sale of the Premier League team to Saudi Arabia’s Public Investment Fund was met by joy in the streets and criticism from human rights groups and others.A group led by Saudi Arabia’s sovereign investment fund completed its purchase of the Premier League soccer team Newcastle United on Thursday, moving swiftly to overcome objections to its yearslong pursuit of a place as an owner in one of the world’s most prominent sporting competitions.The sale instantly transformed Newcastle, an underachieving club whose home in the north of England is far from the power centers of European soccer, into theoretically one of the richest teams in the world, backed by the wealth of Saudi Arabia’s Public Investment Fund, a vehicle that controls assets worth $500 billion.But it also raised new questions about the economics and morality of allowing a nation state, and particularly one accused of serious human rights abuses, into the elite club of Premier League owners.The announcement that the Saudi-led group had acquired full control of the club from its previous owner, the retail tycoon Mike Ashley, came days after Saudi Arabia resolved the obstacle that had blocked a similar agreement last year.Since 2017, Saudi Arabia has not only blocked the Qatari sports network beIN Sports — one of the Premier League’s most lucrative broadcast partners — from operating within its territory, as part of a broader dispute between the two nations, but it has also been accused of both hosting and running a rogue network that pirated beIN’s content.Last year, as the Saudi-led bid to take charge of Newcastle appeared to gather momentum, beIN Sports demanded the Premier League refuse to approve the takeover. Eventually, the Saudi consortium withdrew its offer before the Premier League had to make a definitive decision.But while it emerged on Wednesday that Saudi Arabia had lifted its ban on beIN, the Premier League insisted that the resolution of the piracy issue was not the decisive factor in its permitting the takeover to go through.Instead, the league said in a statement on Thursday that it could allow the deal to happen because it had received “legally binding assurances” that the Saudi state would not be in control of one of its member clubs.The league’s statement suggested it is now apparently satisfied that the P.I.F. — chaired by Mohammed bin Salman, the crown prince of Saudi Arabia — is entirely separate from the Saudi state, where Salman is deputy prime minister, minister of defense and widely regarded as the country’s de facto ruler.Yasir al-Rumayyan, the governor of the P.I.F., will serve as Newcastle’s nonexecutive chairman, with Amanda Staveley, a British businesswoman, and Jamie Reuben, a billionaire property investor, also sitting on the club’s newly constituted board.All directors of Premier League clubs are subjected to a background check, designed to make sure they are suitable custodians of what are often beloved civic institutions. A number of human rights organizations have made their objections to the deal plain, with Amnesty International calling on the Premier League to change the rules of its owners and directors’ test to ensure that those accused of human rights violations cannot take charge of soccer teams.“Ever since this deal was first talked about we said it represented a clear attempt by the Saudi authorities to sportswash their appalling human rights record with the glamour of top-flight football,” said Sacha Deshmukh, the organization’s chief executive in Britain.“Under Mohammed bin Salman, the human rights situation in Saudi Arabia remains dire — with government critics, women’s rights campaigners, Shia activists and human defenders still being harassed and jailed, often after blatantly unfair trials.”In Newcastle, however, fans weary of Ashley’s ownership and the team’s middling performances during his tenure celebrated the sale outside the club’s stadium. Supporters of the club have for months taken to social media to champion the sale, and some even filed legal action against the Premier League to push the takeover forward. More

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      Major Obstacle Removed in Saudi Bid for Newcastle

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      The end of a piracy dispute involving the Premier League broadcaster beIN Sports could clear the way for a Saudi-led group to buy Newcastle United.LONDON — Saudi Arabia’s sovereign wealth fund moved closer to acquiring a Premier League soccer team after the kingdom reached an agreement that resolved the league’s biggest objection to a proposed sale of Newcastle United.A $400 million deal in which Newcastle’s owner, Mike Ashley, would cede control of the team to an ownership group led by Saudi Arabia’s Public Investment Fund had been reached more than a year ago. But the sale appeared to collapse over a yearslong dispute between Saudi Arabia and beIN Media Group, the Qatar-based television network that owned the Premier League’s broadcast rights in the Middle East.Saudi Arabia had since 2017 blocked beIN from operating inside its borders amid a diplomatic dispute with Qatar, its tiny but hugely wealthy neighbor. BeIN, the Premier League and other major sports property owners later accused Saudi Arabia of hosting and operating a rogue television network that pirated billions of dollars’ worth of content that had been sold to the Qatari broadcaster.The Newcastle sale was drawn into that dispute last year when beIN officials lobbied Premier League officials and the British government not to approve the takeover. The league never had to make a decision: Facing mounting public pressure and citing “an unforeseen prolonged process,” the Saudi group withdrew its bid.In the past year, though, Saudi Arabia, Qatar and a group of their neighbors have rebuilt diplomatic and economic ties by ending a three-year blockade of Qatar and normalizing diplomatic relations.Under Premier League rules, prospective buyers of league teams are required to be vetted in order to meet a so-called fit-and-proper standard required of new owners. The group involved in the Newcastle takeover, which also includes the British businesswoman Amanda Staveley and two billionaire property-investor brothers, walked away after the league spent months deliberating over the sale.At the time, the most problematic issue for the Premier League was the proposed sale of one of its members to an entity that the league itself had accused of harming the business of an important commercial partner. With an agreement to resolve the beIN piracy dispute in place, there is nothing in the Premier League’s rules to block the sale of a team to an entity that is an arm of a nation state. Manchester City, for example, the reigning Premier League champion, is controlled by a member of the ruling family of the United Arab Emirates.Smoothing the pathway to a sale could be a separate legal issue as well. Infuriated by the collapse of his deal to sell Newcastle, Ashley in May filed a lawsuit against the Premier League, seeking millions of dollars in damages and accusing the league of blocking the sale. The Premier League was not known to have ever previously blocked a sale, and with the Saudi group’s withdrawal, it appeared not to have done so with Newcastle, despite Ashley’s claims.A Saudi takeover would be the latest infusion of sovereign Gulf money into European soccer, joining owners not only at City but also Qatar’s ownership of the French champion Paris St.-Germain. The seemingly bottomless resources of those ownership groups have since built teams that are now firmly established as among the best in Europe, and reshaped the modern soccer economy.Newcastle’s long-suffering fans have been hoping to enjoy the same rapid rise ever since news of the Saudi interest first emerged. Supporters of the club have taken to social media by the thousands to champion the sale, signed petitions and even filed legal action against the Premier League to push the takeover forward.Newcastle’s owner, Mike Ashley, second from right. He sued the Premier League last year, accusing it of blocking him from selling it.Peter Powell/EPA, via ShutterstockNewcastle narrowly missed winning the Premier League title twice in the mid-1990s but has not won a major domestic trophy since the 1955 F.A. Cup. The last of the club’s four English titles came in 1927, and the club’s more recent history has been dominated by fan opposition to Ashley, the retail tycoon who acquired the team in 2007.The Saudi-led investors had proposed spending as much as $320 million over five years to turn Newcastle into a competitive force in the Premier League and to invest in infrastructure around its stadium.While the Premier League’s glamour and global reach have long made it a magnet for the world’s superrich — team owners currently include American billionaires, a Russian oligarch, a Chinese holding company and a Gulf royal — the prospect of a Saudi state buyout has led to scrutiny never seen before.When the agreement was first announced, human rights groups and even the widow of the murdered journalist Jamal Khashoggi wrote to the Premier League’s chief executive, Richard Masters, to urge him to block the sale because of the involvement of the Public Investment Fund, which is led by Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman.That type of criticism is likely to resurface if Saudi Arabia resurrects, and completes, its deal with Ashley.Buying into a major international soccer league with a global reach would follow similar recent forays into the sports industry by Saudi Arabia. The kingdom has for years made plans to develop its economy beyond oil, and sports and entertainment have emerged as key parts of a broad investment strategy. Millions have been spent so far on attracting boxing, golf and motor sports events to Saudi Arabia, but officials are aware that none carry the appeal of soccer.Earlier this year, the head of the country’s soccer federation called on FIFA to study the possibility of increasing the frequency of the men’s World Cup to every two years instead of every four. Saudi Arabia is working behind the scenes to win the rights to host the event. More

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      Saudi Arabia Mulls Bid to Host 2030 World Cup

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      Saudi Arabia is pursuing an ambitious plan to secure the hosting rights to soccer’s marquee event, but the effort faces political and technical obstacles.Nothing is off the table. Not a bid to buy one of England’s biggest soccer clubs. Not rich offers for multimillion-dollar broadcast packages. Not even an improbable bid to secure the hosting rights to the 2030 World Cup.As Saudi Arabia sets course to spend its way to the top table of global soccer, the heart of those efforts is a bid to land the sport’s biggest prize. To accomplish its goal, Saudi Arabia has hired Boston Consulting Group to analyze how it could land the quadrennial tournament — one of the most watched events in sports — only eight years after Qatar will become the first country in the Middle East to stage the event.Several other Western consultants have been asked to help with the project, according to one of the advisers exploring the feasibility of a Saudi bid, and acknowledge that it will require “out of the box thinking” — including, potentially, an agreement to share the hosting rights with a European partner. And despite Saudi Arabia’s growing influence in soccer, the bid, particularly in its current form, is considered a long shot.A spokesman for Boston Consulting Group, citing company policy, declined to comment.Sports has fast become a central pillar of Saudi Arabia’s Vision 2030 program — a strategic effort to pivot the nation away from oil dependency — but more recently, the country is making a concerted effort behind the scenes to join its regional rival Qatar as a major power broker in soccer.The strategy has had mixed success. Saudi Arabia has enticed leagues in Italy and Spain to sign lucrative contracts to bring domestic cup finals to the country. But efforts backed by its sovereign wealth fund to acquire an English Premier League club and the broadcast rights to the Champions League have so far failed.Regardless of the results, its ambition remains untrammeled. Saudi Arabia is determined to be in the ring for all of soccer’s major properties, and at the heart of those efforts most recently is the World Cup.Human rights groups have long been vocal opponents about staging major sporting events in Saudi Arabia, particularly since the country was accused of complicity in the murder of the Saudi journalist Jamal Khashoggi in 2018.But perhaps the most pressing difficulty to bring a World Cup to Saudi Arabia is a technical one. Since Qatar will stage the first Mideast World Cup next winter, any Saudi Arabian bid would require soccer’s global governing body, FIFA, which runs the tournament, to change its policy of continental rotation in order to bring the event back to the region.One option under consideration is to join with a major European nation also hoping to host the World Cup. So far, only Britain and a partnership of Portugal and Spain, a country whose soccer federation has forged close ties to Saudi Arabia, have publicly announced their intentions to enter the bidding process. Italy, another of Saudi Arabia’s soccer allies, is also considering an effort to host the event for the first time since 1990.Such a cross-continental offer would also require a change of policy from FIFA, which has never staged a tournament on two continents. The 2002 World Cup was shared by the Asian neighbors Japan and South Korea. And the joint United States, Mexico and Canada competition in 2026 will be the first time the World Cup, which by then will have expanded from 32 to 48 teams, is staged in three countries.For a Saudi bid to be successful, organizers could once again have to be persuaded to shift the dates of the tournament from their traditional June-July window to November-December to account for hot weather in the Gulf. The global soccer schedule had to be upended to ensure Qatar could stage the tournament safely, and European leagues whose schedules would be upended might be reluctant to repeat the interruption.Saudi Arabian hopes, though, are boosted by its close links to FIFA and its president, Gianni Infantino, who recently drew criticism from human rights groups after playing a starring role in a promotional video for the Saudi ministry of sport.In January, Infantino held talks with Crown Prince Mohammed bin Salman, the architect of Vision 2030. And FIFA’s membership agreed last month to a motion offered by Saudi Arabia’s soccer federation to study the possibility of holding the World Cup every two years instead of its current quadrennial format.That change could allow even more countries to enter the bidding.“It is time to review how the global game is structured and to consider what is best for the future of our sport,” the president of Saudi Arabia’s soccer federation, Yasser al-Misehal, said at the time. “This should include whether the current four-year cycle remains the optimum basis for how football is managed both from a competition and commercial perspective.”A spokesman for the Saudi Arabian soccer federation declined to comment on a possible World Cup bid, but did point out that the country was fast becoming a destination for high-profile sporting events. In recent years, it has staged major boxing matches, motor races and golf events.“We’re keen to take the stage in the global game as well, turning our passion into on-pitch success, as well as greater collaboration with the international football family,” the Saudi soccer federation said in a statement.Saudi Arabia, despite its largess, also needs to rebuild bridges with a soccer economy still smarting from the effects of a sophisticated pirate television network based in the country that for years stole billions of dollars worth of sports content, repackaged it and sold it to Saudi subscribers. FIFA, as well as major competitions like England’s Premier League and Spain’s Liga, were blocked from filing legal claims in Saudi Arabia to protest the piracy.The network that broadcast the stolen matches, BeoutQ, formed during a regional dispute with Qatar, is now off the air. And while the conflict with Qatar has largely been healed, beIN, the Qatari-owned sports broadcaster, remains banned in Saudi Arabia. That means the only way soccer-mad Saudis will be able to watch this summer’s European soccer championship, and a parallel event in South America, will be through illegal broadcasts.European soccer’s governing body on Wednesday rejected a Saudi offer of around $600 million to broadcast the Champions League regionally, preferring to stick with its current partner, beIN. More