In an incendiary intervention Newcastle’s owner Mike Ashley has accused Richard Masters, the Premier League’s chief executive of acting inappropriately in blocking a Saudi Arabian led takeover of the club.
Club executives are now taking legal advice as they explore ways of forcing the Premier League to permit a £300m buy-out which Ashley maintains Masters had no basis for failing to approve. The gloves came off as Newcastle issued an inflammatory statement on Wednesday night which can, in effect, be regarded as a declaration of war. In it they claimed the Premier League had rejected the attempted buy out on the part of Saudi’s Public Investment Fund (PIF) and its partners, the billionaire Reuben Brothers and Amanda Staveley.
Although the consortium withdrew their offer in July after waiting more than 17 weeks for the Premier League to complete its owners and directors test – a process which normally takes a month – discreet talks have continued in the hope of reviving a controversial deal understood to be supported by the British government.
With events evidently not taking the desired course, Ashley upped the ante with an explosive call to arms issued at the end of an afternoon spent locked in discussions with Newcastle’s managing director, Lee Charnleyafter his helicopter landed at the training ground.
“Newcastle United can confirm that the Premier League has rejected a takeover bid made by PCP Capital Partners, the Reuben Brothers and the Public Investment Fund of Saudi Arabia (PIF) based on its Owners and Directors test,” said the club’s statement. “This conclusion has been reached despite the club providing the Premier League with overwhelming evidence and legal opinions that PIF is independent and autonomous of the Saudi Arabian government. The club and its owners do not accept that Premier League chief executive Richard Masters and the Premier League have acted appropriately in relation to this matter and will be considering all relevant options available to them.”
Given that Mohammed bin Salman, Saudi’s de facto ruler, is the governor of PIF, that issue became a particular sticking point in a bid beset by problems surrounding broadcast piracy suffered by Qatar, whose beIN Sports have a £500m contract with the Premier League to transmit matches across the Middle East and North Africa.
Human rights concerns regarding the Saudi regime and a lack of enthusiasm on the part of some Premier League rivals for the prospect of Newcastle becoming potentially the division’s richest club further complicated matters, while increasing Ashley’s irritation.
The retail tycoon – who marked his return from several months in Miami by taking the manager, Steve Bruce, staff and players out to dinner in Newcastle last night/on Wednesday night – is desperate to sell up at St James’ Park in order to concentrate on his largely High Street based stores which have been badly affected by the coronavirus pandemic. Meanwhile Newcastle fans are desperate to see the back of an unpopular owner and local businesses – not to mention the government – believe the Saudi’s pledge to invest hundreds of millions of pounds in regenerating the region’s economy could have proved transformative for the north east.
“Mike Ashley understands fans’ frustrations and would like to reassure them that he has been fully committed to ensuring this takeover process reached completion as he felt it was in the best interests of the club,” the statement continued. “Mike continues to be fully supportive to Steve Bruce, the players and all the staff and wishes them well for the upcoming season.”
The Premier League could not be reached for comment last night but, earlier in the day, Masters had said he had “sympathy” for Newcastle fans disappointment at the failed takeover.