Saudi PIF ups stake in Newcastle United to 85%

Newcastle United

Saudi Arabia’s sovereign wealth fund – the Public Investment Fund (PIF) – has increased its stake in Newcastle United football club to 85 percent from 80 percent.

PIF and RB Sports & Media, the sporting arm of the UK-based Reuben Brothers, will together acquire PCP Capital Partners’ shareholding in the club, the stake co-owned by Amanda Staveley.

RB Sports & Media will hold the remaining 15 percent stake in the club.

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The ownership changes are expected to be completed in July, the English Premier League football club said in a statement. No financial detail were disclosed.

Staveley will step down from all her positions with Newcastle United.

“The ownership group, together with CEO Darren Eales and the club’s executive team, will continue to build on the foundations for long-term, sustainable success for the team,” said Yasir Al-Rumayyan, chairman of Newcastle United.

“We are excited about the future prospects for Newcastle United,” he said.

Al-Rumayyan is also the governor of PIF.

In October 2021, an investment group led by the PIF, comprising PCP Capital Partners and RB Sports & Media, completed the acquisition of Newcastle United Limited and Newcastle United Football Club from St. James Holdings Limited.  

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The Saudi fund acquired the stake for £305 million in October 2023, according to a BBC report.

Investment in football is part of Saudi Arabia’s Vision 2030 strategy to diversify its economy and overhaul the country’s image.

Fourteen Saudi football clubs, including four from the country’s top Pro League, are up for sale as the country tries to monetise the sport and attract much-needed foreign investment. 

Six teams, including three in the Pro League – Al-Okhdood, Al-Orouba and Al-Kholoud – will be offered from August. The other eight will follow at a later date, including Al-Riyadh, the sports ministry said, after the cabinet approved the project. 

PIF revealed this month in its 2023 financial report that it could be constricted in its ability to offload the clubs, since its ownership is considered a “common control transfer”, in which ultimate shareholding is retained by the government.