Suitors swooping fast on Magpies

LONDON • A possible takeover of English Premier League side Newcastle United by a group fronted by British financier Amanda Staveley, with Saudi Arabian backing, appears to be moving closer to completion.

A 31-page charge agreement filed with Companies House and signed by Staveley for PCP Capital Partners and a lawyer for St James Holdings indicated a framework for a deal was being put in place.

There was, however, no mention in the documents of the Saudi Public Investment Fund (PIF), the country's sovereign wealth fund that had been reported as the prospective majority shareholder.

Media reports stated the group would take an 80 per cent shareholding should the deal go through.

Sky Sports said the Saudis would hold an 80 per cent stake while Staveley would take 10 per cent and play a key role in the running of the club. The other 10 per cent would be held by British billionaire brothers David and Simon Reuben.

British billionaire Mike Ashley, who made his fortune from sportswear retailer Sports Direct (Frasers Group), has owned Newcastle since 2007.

Sky added that the asking price was understood to have dropped by £40 million (S$71.2 million) to around £300 million, with Ashley willing to structure payments.

The reduction reflects the impact of the coronavirus pandemic that has halted all major leagues worldwide, leading Newcastle to place their non-playing staff on the UK government's furlough scheme.

Under the scheme, which is designed to mitigate the financial impact of Covid-19, the government will subsidise 80 per cent of wages up to £2,500, but only fellow Premier League side Norwich have followed Newcastle's lead.

Top-flight leaders Liverpool and Tottenham have already reversed their previous decisions and on Tuesday night, Bournemouth did the same, saying they were "aware of the criticisms... (and) we have listened to our supporters".

Newcastle have been on the market for several years and talks with Staveley's PCP have been going on behind the scenes for some time.

The reported stake of the Saudi sovereign wealth fund in Newcastle in the latest buyout speculation.

The team, who were 13th in the table before the league was halted on March 13, did not respond to inquiries by local daily Newcastle Chronicle, while Staveley was uncontactable as was Ashley, who was reported to be in Miami.

Three years ago, PCP made an offer for a reported £250 million but the talks broke down.

Last year, the Magpies were rumoured to be on the brink of being bought by Abu Dhabi billionaire Sheikh Khaled Zayed Al Nahyan, but that deal did not go ahead either.

While long-suffering Newcastle fans are hoping the latest takeover bid will finally go through, after numerous protests against Ashley's stewardship over the lack of spending and ambition, former Everton striker Tony Cottee has warned them to curtail their expectations.

The team have not lifted major domestic silverware since the FA Cup in 1955.

"Potentially, for me, Newcastle should always be a top-10 club," he told Sky. "They are a massive football club, a one-club city, and they should be looking to push into that top six.

"(But) it will take time. You can have all the money in the world, but you have to spend that money correctly and properly."

AGENCE FRANCE-PRESSE, REUTERS

The Abu Dhabi United Group took over in 2008, transforming the then mid-table club into Premier League and European powerhouses.

In the past decade, City have not only clinched more trophies (11) than any other English top-flight club, but have also since become the first team to spend more than €1 billion (S$1.55 billion) on players - an amount that dwarfs most clubs in Europe.

They were only promoted to the Premier League this season after a 12-year absence from the top flight, but the Blades have emerged as dark horses for a Europa League place - they were just two points behind fifth-placed Manchester United (45) before the league was suspended on March 13 owing to the coronavirus pandemic.

Saudi Prince Abdullah Bin Mosaad bin Abdul Aziz invested in the club in 2013 before finalising his ownership last year. The founder of the one of the Gulf region's largest paper manufacturing companies, Saudi Paper, has funded some astute signings like John Egan and John Fleck that have helped the side punch above their weight.

They may be in a precarious position, second last and only four points above Norwich, but owners NSWE Group have at least given them a fighting chance of escaping the drop, having funded a £145 million (S$258.2 million) spending spree since being promoted from the second tier last May.

According to British tabloid The Sun, the Villans have recorded a higher net spend than Barcelona and Manchester United in the last two transfer windows, and that has to do with the financial muscle provided by Egyptian billionaire chairman Nassef Sawiris, who co-owns NSWE.

While they have not tasted success since Farhad Moshiri arrived at Goodison Park in 2016, with fans still waiting for a first trophy since the 1995 FA Cup, the majority shareholder and businessman has not been slow to act as he bids to help the Toffees emerge from the shadow of their much more illustrious neighbours Liverpool.

The British-Iranian billionaire has spent £450 million in transfer fees to bolster the squad and has fired four full-time managers, before settling on the highly decorated Italian Carlo Ancelotti last December.