Decks cleared for Newcastle United takeover by Saudi consortium

Bengaluru, October 7: With Qatar-based broadcaster beIN Sports confirming that Saudi Arabia will soon lift a ban on it, decks have been cleared for the proposed takeover of Premier League Newcastle United by the kingdom's sovereign wealth fund (PIF), whose chairman is Crown Prince Mohammed bin Salman,

It is worth mentioning that beIN holds the rights to broadcast the Premier League across the Middle East but Saudi Arabia's General Authority for Competition suspended its channels in 2017 and permanently cancelled the broadcaster's licence last year amid a bitter dispute between Riyadh and Doha, which was resolved in January.

Saudi Arabia's response to cases of unauthorised broadcasting of Premier League games in the country was a key issue raised by critics of a proposed 305 million pound bid from the PIF, PCP Capital Partners and Reuben Brothers to buy Newcastle United from British businessman Mike Ashley in April 2020.

Newcastle United takeover off as Saudi-led consortium pulls out

"We've been informed that Saudi Arabia's 4.5 year illegal ban on beIN SPORTS is going to be reversed soon," an e-mailed statement from beIN Media Group said, reports Reuters news agency.

BeIN, which counts Saudi Arabia as its biggest market in the region, said that the kingdom's ban was the TV channel's singular objection to the Newcastle takeover.

Latest: Saudi takeover of Newcastle United expected to be announced today. Staveley, the Reuben brothers and just one PIF representative expected to be on the new board. https://t.co/KxQ32ODA3g

— Martyn Ziegler (@martynziegler) October 7, 2021

The proposed takeover collapsed last year with the consortium saying that the prolonged process and global uncertainty had rendered the potential investment no longer commercially viable.

Cafes and restaurants in the Saudi capital Riyadh have already started using satellite dishes to show games on beIN Sports channels since the diplomatic rift was ended.

It may be recalled that Saudi and a few other Gulf nations had imposed economic sanctions on Qatar in June 2017 accusing the country of sponsoring terrorism, an allegation which the 2022 FIFA World Cup host nation vehemently denied.

The economic blockade was finally lifted in January this year.

All parties are hopeful an announcement can be made today confirming the takeover of Newcastle United 🤝

Full story 👇

— Sky Sports News (@SkySportsNews) October 7, 2021

"We've also been approached by Saudi for them to settle our legal cases, including our $1 billion investment arbitration," beIN's statement added.

A court case, which has been brought by beIN under international arbitration rules and claimed over $1 billion in damages against Saudi Arabia, is still pending. The arbitration will be held in London.

Newcastle's owner initiated legal proceedings against the Premier League earlier this year over the aborted takeover attempt that have been adjourned until early 2022.

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Newcastle are currently languishing 19th in Premier League having failed to win a single game in the 2021-22 season.

With three draws and four loses, they have just three points and are just ahead of Norwich City

Their next game is an away fixture against Crystal Palace on October when the Premier League resumes after the international break.

A takeover by Saudi consortium, is seen a big boost to their sagging fortunes.

The club is currently owned by Ashley, who is a very unpopular figure with most Magpies supporters.

Retail tycoon Ashley has been a hated figure in his 14 years in charge of Newcastle, during which time the club have twice been relegated from the Premier League before bouncing back in style to the top flight of England football.

(With inputs from Agencies)