Saudi fund behind bid to take over Newcastle

Consortium’s majority partner is run by prince Financier Staveley has put together £340m approach

Saudi Arabia’s sovereign-wealth fund is the majority partner in a consortium that is in talks to buy Newcastle United for £340 million.

The Sunday Telegraph has been told by sources that the Public Investment Fund (PIF) is involved with investors who have been organised by financier Amanda Staveley.

A deal has not been agreed as yet with Newcastle owner Mike Ashley, who put the club up for sale in 2017, and there is no certainty it will go through but it is understood that detailed discussions have taken place.

If the deal is completed, PIF will become the majority owner of the Premier League club, taking an 80 per cent stake, with Staveley’s company PCP Capital Limited and other backers covering the remaining 20 per cent.

Talks have been ongoing for weeks with the consortium code-naming their plans “Project Zebra” – because of Newcastle’s black-and-white strip.

If Staveley is successful it will be a personal and professional triumph for her given she has been attempting to buy Newcastle for over two years and has come in for fierce criticism.

News of a potential takeover will inevitably be met with scepticism among Newcastle fans who have seen several false dawns, but the buyers are understood to be serious in their intent.

The key – the game-changer, in fact, it appears – is the expected involvement of PIF, which is chaired by Saudi Crown Prince Mohammed bin Salman, and the vast backing it potentially brings from the world’s largest sovereign wealth fund. Staveley was at the Future Investment Initiative ( Saudi’s “Davos in the Desert” event) in October and held talks with PIF.

The Saudis have been considering how best to make a move into football for some time and have examined buying other clubs. Questions will be asked as to why, with their wealth, the Saudis want to bring in minority partners but it is not unusual in terms of the way they structure deals.

The fund is central to Saudi Arabia’s Vision 2030, a plan spearheaded by Prince Mohammed to diversify the economy away from oil and is also the driving force behind the country’s ambitions to develop new tourist and entertainment industries.

The Telegraph has established that it is hoped a deal will be announced soon. However other sources, concerned that it has become public, which has angered all parties, have urged caution and even suggested it was still possible the takeover might not proceed.

If the deal goes through it will cause excitement among Newcastle fans who have been disillusioned for a number of years and who will be desperate to see what the plans are for the future of the club. Newcastle were forced into an FA Cup replay away to League One Oxford United after a disappointing goalless draw yesterday.

Ashley paid £134.4 million for Newcastle in 2007 but the Sports Direct owner has been an unpopular owner.