The UK Government considered a failed Saudi takeover of Newcastle United a 'risk' to the relationship between the two countries, an investigation by the Athletic has revealed.
The Government, then Prime Minister Boris Johnson and Premier League chief executive Richards Masters have always denied there was any outside interference in the £300m takeover of the club. However, 59 pages of emails between government officials obtained by The Athletic appear to show figures in the Conservative party and British Foreign Office attempted to play some role in the changing of ownership on Tyneside.
While both Richard Masters and Boris Johnson have refused to comment on the latest revelations, the former previously insisted “no pressure was applied” during the takeover negotiations. Meanwhile, the former Prime Minister told Parliament in 2021: “These are commercial matters for the parties concerned. The government was not involved at any point in the takeover talks on the sale of Newcastle United.”
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The recent investigation has uncovered that before the £300m deal was rubber stamped by the Premier League, Sir Edward Lister - chief strategic advisor to Johnson, was considering who should be the “senior interlocutor” as the Premier League finalised its consideration of the takeover. Lord Gerry Grimstone, then a minister for the Department of International Trade, was chosen in such role. Grimstone denies seeking to influence the decision.
The British ambassador to Saudi Arabia, Neil Compton, is said to have met with PIF officials to discuss the takeover, while then-Foreign Office minister James Cleverly was asked for updates on the takeover from the Saudi ambassador.
The UK and Saudi Arabia have developed a close relationship in recent years, despite concerns over the human rights record of the latter. Saudi Arabia is the UK's main trading partner in the Middle East and the UK is Saudi Arabia's closest European ally.
A British Foreign Office email seen by the Athletic reveals how the UK and Saudi Arabia “committed to a long-term partnership” back in 2018 'that would support the delivery of Mohammed Bin Salman's Vision 2030 plan', which plans to diversify the Saudi economy to become less reliant on oil and gas.
“PIF aims to target direct investments amounting to $30billion over a 10-year period into the UK," read one line of the email.
Saudi Arabia's Public Investment Fund (PIF) is among of the largest sovereign wealth funds in the world with around £500billion in assets. PIF have stakes in Facebook, Disney, Uber and many more global brands and saw the opportunity to branch into European football when Mike Ashley sought a keen buyer for Newcastle United.
The £300m takeover has been launched back in the headlines recently following a messy lawsuit between Saudi-backed LIV Golf and the PGA Tour. A San Francisco court approved the PGA Tour's request to include PIF chair and Magpies chairman Yasir Al-Rumayyan in its lawsuit and ordered them to produce documents in the case.
However, PIF challenged that order, arguing both the wealth fund and its governor Al-Rumayyan "are not ordinary third parties subject to basic discovery relevance standards". Amnesty International, among others, claim this is proof that the 'legally-binding assurances' received by the Premier League regarding the Saudi state and PIF were not true.
The Premier League have refused to comment on the matter and Masters himself refused to say whether the takeover will be re-investigated when quizzed at a DCMS committee last month. Speaking back in 2021, the Prem chief admitted the takeover could be re-examined down the line but Chronicle Live understands Newcastle United are confident no such action will be necessary.
One other issue in the agonising, drawn out takeover saga was that of TV piracy in the Gulf. Qatar-backed beIN Sports wanted the takeover blocked due to Saudi Arabia allegedly facilitating pirate broadcasting of top flight matches. Saudi lifted beIN Sports ban in the country just days before the takeover was finally given the green light.
The Athletic report the TV company is now considering reopening its investment arbitration case against Saudi Arabia after the relationship soured once again in recent months. Souring relations between beIN Sports and the Saudi state are unlikely to affect Newcastle's takeover with Masters previously stating that issue was not a driving factor behind the lengthy takeover delay.
"That had nothing to do with it. The issue was about control and we resolved that," the Prem chief said in 2021.
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