The sale of Newcastle United has collapsed after the Saudi-backed consortium in talks pulled out of the deal.
A £300million bid was accepted in April between Newcastle owner Mike Ashley and a consortium led by financier Amanda Staveley, made up of Saudi Arabia’s Public Investment Fund, PCP Capital Partners and Reuben Brothers.
Billionaire businessman Ashley, who owns discount sports gear retailer Sports Direct, is disliked by Newcastle supporters and has been open to offers to end his 13-year reign.
The Premier League has been scrutinising the deal for several months as part of its owners’ and directors’ test, forcing the consortium to pull out yesterday, citing the current global financial uncertainty brought on by the coronavirus crisis and that their commercial agreement with Newcastle expired.
“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 be,” the group said in a statement.
“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.
“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.
“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.”
The potential deal was opposed by human rights groups and Hatice Cengiz, the fiancee of murdered journalist Jamal Khashoggi, but was welcomed by some Newcastle fans.
Andrew Smith, the media co-ordinator of Campaign Against Arms Trade, said last night: “This is the right outcome for the wrong reasons. The negotiations should never have taken place. The history and character of the Saudi regime should have been enough to prevent it even being considered.
“The message this deal would have sent is a terrible one. The FA must look at the fit and proper persons test and strengthen it to ensure that clubs are not entering negotiations with human rights abusers in the future. Football clubs should never be propaganda vehicles for dictatorships.”
Amnesty International UK said in a statement: “This deal was always a blatant attempt by the government of Saudi Arabia to try to sportswash its abysmal human rights record by buying into the passion, prestige and pride of Tyneside football.”
The consortium’s statement added: “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 truly appreciated your incredible expressions of support and your patience throughout this process. We are sorry it is not to be.”
American television executive Henry Mauriss is said to be interested in buying the club from Ashley.
Staveley said: “I’m absolutely heartbroken for the club, the fans and the community.”
from Football – inews.co.uk https://ift.tt/3fbTfWA
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