Saudis may resubmit takeover bid if Newcastle win arbitration case
The £305million Saudi Arabiabacked attempt to buy Newcastle United will be resubmitted if the club win their arbitration case against the Premier League.
The revelation yesterday that Saudi Crown Prince Mohammed bin Salman personally lobbied the
Prime Minister over the case is not believed to have forced the wouldbe buyers to reconsider.
The Crown Prince had urged Boris Johnson to “correct and reconsider” the “wrong” conclusion by the Premier League that he would be in charge of the club. This led to the Government denying it was involved “at any point” over the failed bid and attempts to revive it.
However, officials acknowledged that meetings had taken place between the Foreign Office and the Premier League, and Johnson asked a senior No10 aide, Lord Eddie Lister
– who is a Middle East expert – to take up the prince’s complaint.
Despite the controversy, the buyers have not altered their stance and believe the issue remains a legal one, with Newcastle having taken the Premier League to arbitration.
The offer was withdrawn last July after the Saudis grew frustrated as the Premier League continued to deliberate about whether the bid passed its owners and directors test.
Throughout the past year, the bidders have continued to remain interested. The situation may have become more complicated had Newcastle been relegated, but that possibility now looks less likely, while there might be some renegotiation of the final price due to the delay and the continued financial ramifications of the coronavirus pandemic.
The Premier League maintained that it had not made a final decision on the takeover, despite 17 weeks of deliberation, although the issue has now gone to private arbitration, which is permitted through the organisation’s rule book.
The case has been brought by Newcastle, rather than the consortium which includes Amanda Staveley’s PCP Capital Partners and the Reuben Brothers who, with Saudi’s Public Investment Fund (PIF), had finally agreed a deal to buy the club from Sports Direct owner Mike Ash
ley last April. Ashley remains committed to selling to the consortium and is not believed to have held talks with any other bidders.
However, even the arbitration process is taking far longer than expected. It had been hoped it would be finalised in February but now, into the middle of April, it is understood the three-man panel has still not sat, although none of the parties will confirm what is happening because it is deemed a confidential process.
The delay is partly because Newcastle’s legal team, led by Nick de Marco QC, had unsuccessfully gone to the High Court to ask for the removal of Michael Beloff QC as chairman because he could be “biased”, as he had previously advised the Premier League in relation to a potential change to its owners and directors test.
The Premier League was placed under severe pressure because of the alleged Saudi involvement in the piracy of sports broadcasting – which they deny but which was detailed in a World Trade Organisation report – and the state’s human rights record.
The row over the takeover centred on whether PIF is independent – as it claims – or an arm of the Saudi state. The prince, who is the de facto head of the country, is chairman but argues that it is a separate entity, although his lobbying of the Government has raised questions.
However, he can argue his actions are similar to Johnson intervening on behalf of a UK buyer wanting to acquire an overseas asset. If Newcastle win, Ashley, who is determined to complete the deal and has already been paid a deposit, will expect the takeover to be waved through.
The speculation has proved a distraction to Newcastle manager Steve Bruce and his players this season and the threat of relegation – which could cause complications for any takeover – is still present with the side just six points above the drop zone.