Newcastle United are now under new ownership, with a £300 million ($408m) deal led by a Saudi Arabian consortium has completed its purchase of Premier League club as Owner Mike Ashley’s 14-year tenure at St James’ Park comes to a close.
A move which signaled the end of a long-running takeover saga that the majority of the club’s supporters were waiting for, but was impeded by the Premier League to give proper approval.
Fans began celebrating outside the St James’ Park stadium after the Premier League confirmed the struggling club had been sold to a consortium consisting of PIF, PCP Capital Partners and RB Sports & Media with immediate effect.
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PIF — Saudi Arabia’s $US430-billion ($588.2 billion) sovereign wealth fund — now has plans to transform the economy by creating new sectors and diversifying revenues away from oil.
Saudi Arabia’s Public Investment Fund (PIF) withdrew a 305 million pound ($567.87 million) bid to buy the north-east club from owner Mike Ashley 14 months ago as a result of that lack of regulatory approval.
Yasir Al-Rumayyan said in a statement, the deal would mean long-term investment to “harness the club’s potential and build upon the club’s legacy.
“We are extremely proud to become the new owners of Newcastle United, one of the most famous clubs in English football,” he said.
“We thank the Newcastle fans for their tremendously loyal support over the years and we are excited to work together with them.”
The takeover, fronted by PCP Capital Partners’ chief executive Amanda Staveley, ends an unhappy era at St James’ Park and means Newcastle will be one of the world’s richest clubs.
Ms Staveley will now have a seat on Newcastle’s board of directors along with Jamie Reuben of RB Sports & Media.
Ms Staveley said in a statement that “This is a long-term investment,”.
“Our ambition is aligned with the fans — to create a consistently successful team that’s regularly competing for major trophies and generates pride across the globe.”
“I know everybody has a lot of questions about managers and players and things but right now we just want to get there and do a review of the business. We’re going to let you all know the plans,”.
Hundreds of Newcastle’s so-called Toon Army supporters, who have protested against Mr. Ashley’s running of the club, gathered outside the stadium in the drizzle throughout the day, buoyed by news of the imminent takeover.
Newcastle becomes the 14th current Premier League club to have majority foreign owners and fans hope it heralds a new era like that at Manchester City who have dominated English football since being bought by Abu Dhabi’s Sheikh Mansour in 2008.
French club Paris St-Germain have also made an impact under Qatari ownership with a host of mega-money signings.
Newcastle’s takeover ends the 14-year ownership of Mr. Ashley whose stewardship has been deeply unpopular, with the supporters accusing him of under-investment and lack of ambition.
