Newcastle: Saudi Arabian-backed consortium call off takeover
Newcastle's prospective takeover has collapsed with Saudi Arabia's Public Investment Fund, PCP Capital Partners and Reuben Brothers withdrawing from the process to buy the club from Mike Ashley. A £300million deal had been agreed back in April but there have been no developments since then despite the Premier League having received the relevant paperwork.
And now, the Saudi-led group have decided to pull out of the deal, citing the uncertainty caused by the global coronavirus crisis as the reason for their decision.
Financier Amanda Staveley was spearheading the takeover attempt with her company PCP Capital Partners, with Ashley keen to sell off Newcastle after 13 years.
There have been multiple failed attempts to buy out Newcastle during the unpopular Sports Direct mogul's ownership of the north east club.
But it was hoped that this deal would finally see his time as Magpies owner ended, with Newcastle's fanbase having long been keen to see the Brit sell up after years of underachievement.
Newcastle takeover off: Amanda Staveley speaks out after Saudis pull out of £300m deal (Image: GETTY)
Yet the Premier League delayed a decision as to whether the green light to the takeover for 17 weeks as they conducted their owners' and directors' test.
Such uncertainty played its part in the Investment Group opting to walk away, just as it had appeared Steve Bruce's side would benefit from a huge investment to allow the club to begin dreaming of a return to European football.
And speaking out for the first time since the decision, Staveley said, per Jim White: "I’m absolutely heartbroken for the club, the fans and the community.”
She added to the Times of London when asked if she blamed the Premier League: "Of course we do. They had a chance, they say we have not answered all the questions and we have done so. But the other clubs in the Premier League didn’t want it to happen.
"We are so heartbroken for the Newcastle fans as the investment that was going to go into the club, especially with everything happening with Brexit and Covid, would have been so important.
"This is catastrophic for them. It has been going on for so long and the opportunity was there.”
Newcastle takeover off: Amanda Staveley speaks out after Saudis pull out of £300m deal (Image: GETTY)
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A statement from the Investment Group meanwhile read: "With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
"We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans' merit.
"Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.
"To that end, we feel a responsibility to the fans to explain the lack of alternatives from an investment perspective.
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Newcastle takeover off: Amanda Staveley speaks out after Saudis pull out of £300m deal (Image: GETTY)
"As an autonomous and purely commercial investor, our focus was on building long-term value for the club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a difficult period of global uncertainty and significant challenges for the fans and the club.
"Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club's owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.
"As often occurs with proposed investments in uncertain periods, time itself became an enemy of the transaction, particularly during this difficult phase marked by the many real challenges facing us all from Covid-19.
"We feel great compassion for the Newcastle United fans, with whom we shared a great commitment to help Newcastle United harness its tremendous potential and build upon its impressive and historic legacy while working closely with the local community.
"We would like to say that we truly appreciated your incredible expressions of support and your patience throughout this process. We are sorry it is not to be.
"We wish the team and everyone associated with it much good luck and success."
Newcastle have also received a £350m bid from American television executive Henry Mauriss but it remains to be seen whether that will now make progress after the Saudis backed off.