The Premier League has no plans to revisit the legality of Newcastle United's takeover by Saudi Arabia's sovereign wealth fund, despite reports indicating significant involvement from Crown Prince Mohammed bin Salman in the deal. Leaked WhatsApp messages from former Newcastle minority co-owner Amanda Staveley, obtained by The Telegraph, suggest the £305m buyout in 2022 was contingent on Bin Salman's approval, who is the kingdom's de facto leader. Although the takeover was approved after the Premier League received 'legally binding assurances' that the Saudi state would not control Newcastle, the governing body has no intention of re-examining its legitimacy.
The Premier League declined to comment when contacted by The Guardian, but it is understood that, despite Bin Salman's role as chairman of the Public Investment Fund (PIF), the league is confident in the clear separation between the Saudi state and Newcastle's management. Staveley's messages also highlighted the UK government's support for the takeover, but the Premier League maintains that no political influence affected their owners and directors test.
Foreign states are not prohibited from owning Premier League clubs, but Saudi Arabia's human rights record raised concerns about the ownership. Notably, a CIA report concluded that Bin Salman ordered the murder of Washington Post journalist Jamal Khashoggi in 2018, a claim he denies. Staveley, through her lawyers, stated she only referred to Bin Salman in his capacity as PIF chairman.
The PIF holds an 85% stake in Newcastle, with the remaining 15% controlled by British billionaire property developers Reuben Brothers. Staveley, instrumental in brokering the deal between former owner Mike Ashley and the PIF, initially held a 10% stake but sold her shares and resigned from the board in July.
In other news, Premier League clubs will meet on Tuesday to discuss changes to financial regulations following a legal challenge by Manchester City. The debate will focus on the position of shareholder loans within the league's associated party transaction (APT) rules, after an arbitration panel suggested excluding such loans breached competition law. Manchester City accused the league of 'misleading' clubs about the judgement's meaning, published on 7 October, interpreting it as voiding all APT rules. The Premier League has sought clarification from the arbitration panel, but significant confusion remains.
APT regulations aim to ensure deals between clubs and linked entities are at fair market value, preventing artificial inflation to boost revenue and bypass profit and sustainability regulations.
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