In a major move that shocked English football, the Newcastle United takeover was announced by the club. The deal was completed on October 7, 2021. The takeover was completed in a deal worth £300 million.
Mike Ashley left his position in Newcastle, paving way for new owners. The owners include Saudi Arabia’s Sovereign Wealth Fund, Public Investment Fund, the Reuben Brothers of RB Sports & Media, and Amanda Staveley of PCP Capital Partners.
The Public Investment Fund is said to be the majority shareholder with as much as 80% stake. The Chairman of the PIF is Mohamed bin Salman, the Crown Prince of Saudi Arabia, and has an estimated fortune of £300 billion.
In the Newcastle United takeover deal, Jamie Reuben is the new club director, Yasir Al-Rumayyan, who is the Governor of PIF will be the Non-Executive Chairman. Amanda Staveley will have a seat on the board, and will a key role in the day-to-day running of the club.
This is the end to Mike Ashley’s 14-year tumultuous reign. The billionaire has made series of controversial decisions at Newcastle. He failed to invest in the team resulting in relegation struggles over the year. Newcastle United Stadium from St. James Park to Sports Direct Arena.
They suffered relegations from the English top-flight to the Championship in 2006 and 2009
How Newcastle United takeover affects big EPL teams
This Newcastle United takeover has effectively made Newcastle United the richest club in the world. The owners have a fortune of around £320BN, much more than Manchester City’s £23BN, or Chelsea’s £9.6BN.
As expected, players’ values will skyrocket, and there will be more influx of big names signings to EPL. The transfer market will sure get more frenzy and competition for top talents will increase.
Amanda Staveley who was responsible for brokering the deal that brought Sheikh Mansour to Manchester City as owners will play a major role in Newcastle dealings.
She now owns a minority stake of 10% in the club and has promised that Newcastle will buy world-class players. She however insisted that the immediate priority of the new owners is to upgrade the infrastructure in the club especially the pitch and training ground. This will make the team appealing to football superstars.
If the new owners fulfill their promises, the Premier League should brace up for an exciting new rivalry and challenge in the near future. The title race will become more difficult, and exciting.
Manchester City became an overnight success following the acquisition by Sheikh Mansour in 2008. They moved from being a mediocre mid-table team to league winners. They now have five Premier League titles, which is higher than any other team since 2008.
They also have two FA Cups, and six EFL trophies. Manchester City also made the Champions League group stage every year since 2011 and contested in the final of the competition last season against Chelsea. They will lose 1-0 to Chelsea.
Compare that with Arsenal, one of the traditional heavyweights in the Premier League. After they moved from Highbury Stadium to the Emirates Stadium, the owners could not invest properly in the team. This has led to a gradual decline in the team performances over the years.
A team that boosted the best talents in Europe, and won the Premier League in 2004 after an unbeaten run in the 2003 – 04 season, Arsenal also made the Champions League final in 2006 losing to Barcelona.
Things have gone from bad to worse as Arsenal has never played in the Champions League since 2016.
Newcastle has gone through the worse already. A team that was once title challengers in the early 90s, has become an average team, with struggles to maintain their top-flight status every year. Many coaches have been hired and fired with a little upturn in results
This success story will serve as inspiration for Newcastle owners who will be hoping to challenge the likes of Chelsea, Manchester City, Manchester United, and Liverpool for titles.