The Saudi Arabia-financed consortium's bid for Newcastle United is expected to go through in the near future following the reversal of a ban on beIN Sport in the Gulf nation.
A takeover saga which has now dragged on for 18 months and seen the club embroiled in legal disputes with the Premier League is now closer to resolution and the group, led by Amanda Staveley, the British businesswoman, could soon bring to an end Mike Ashley's 14-year ownership of Newcastle.
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The announcement on Wednesday that beIN Sport, the Premier League’s official Middle East broadcaster, will no longer be barred from operating in the kingdom means the takeover is on the cusp of being completed.
In July last year, Staveley’s group pulled out of a deal to buy Newcastle after the Premier League failed to give regulatory approval. The issue was the separation – or lack of – between the Saudi state and its Public Investment Fund (PIF), which would have owned an 80 per cent share of the club. Staveley would have held 10 per cent and David and Simon Reuben, the British businessmen, the other 10 per cent.
Saudi Arabia's involvement in the bid raises important questions about geopolitics, sportswashing and human rights, but a recent poll conducted by the Newcastle United Supporters Trust (NUST) found that 93.8 per cent of its members were in favour of the takeover.
The reversal of the ban on beIN Sports meanwhile ends a lengthy dispute between Qatar and Saudi Arabia.
In 2018, Qatar filed a complaint with the World Trade Organisation (WTO) saying Saudi Arabia was blocking beIN — a Qatari company — from broadcasting in the kingdom.
The beIN Corporation subsequently launched an international investment arbitration against Saudi Arabia for damages totalling more than $1 billion.
Qatar also accused Saudi Arabia of failing to take effective action against alleged piracy of beIN’s content by beoutQ, a pirate broadcaster.
Saudi Arabia’s decision to reverse its ban of beIN Sport will see beoutQ’s operation turned off. beIN Sport’s international investment arbitration will also end.
Saudi Arabia has also committed to removing all pirate websites when informed of them by beIN.
Last year, the WTO ruled that Saudi Arabia helped breach international piracy laws in relation to the beoutQ. Saudi Arabia has previously denied aiding the beoutQ operation and has insisted there is no link between its government and the alleged piracy.
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beIN Sports was broadcast on an irregular basis in Saudi Arabia earlier this year, with beIN commenting at the time: “Regarding breaking stories that beIN is fully operational in Saudi Arabia, nothing has materially changed as far as we are aware at this stage – we are constantly monitoring.
“Our website is still fully blocked in Saudi Arabia and we have received no official communication from the Saudi authorities to suggest that our license has been re-instated.
“However, like everyone, we are hopeful of positive moves by Saudi to allow beIN operations back in the country after 3.5 years. We await to see.”
Who is Amanda Staveley?
Amanda Staveley is a British businesswoman with strong connections to the Middle East.
She played a prominent role in the ruling families of Abu Dhabi and Qatar carrying out an investment of £7.3 billion in Barclays in 2008. PCP Capital Partners, her firm, acted for Sheikh Mansour of the Abu Dhabi royal family.
Staveley was also involved in his takeover of Manchester City in the same year.
Who are PIF (the Public Investment Fund)?
The Public Investment Fund (PIF), created in 1971, is Saudi Arabia's sovereign wealth fund.
It has a total estimated asset value of around $500 billion.
The PIF owns stakes in Live Nation, Boeing, Facebook, Citigroup, Disney and Bank of America, oil company BP and Uber.
The organisation is chaired by Mohammad bin Salman, with Yashir bin Othman Al-Rumayyan as the governor.
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Why has the beIN Sports ban reversal had such a big impact?
beIN Sports have been one of the biggest opponents of the takeover.
The chief executive of the network, Yousef al-Obaidly, last year wrote to the chairs of top-flight clubs about the deal, urging them to “fully interrogate” the consortium.
In the letter, Al-Obaidly accused the Saudi Arabian government of the “facilitation of the near three-year theft of the Premier League's commercial rights — and in turn your club's commercial revenues — through its backing of the huge-scale beoutQ pirate service”.
A resolution between Qatar and Saudi Arabia on this issue therefore removes a major obstacle that has helped to prevent the takeover from taking place.
(Photo: Getty Images)
