Saudi-backed consortium pulled out of proposed £300m takeover of Newcastle on Thursday; American Henry Mauriss still linked
Friday 31 July 2020 11:28, UK
After a prolonged process the Saudi-backed consortium's attempt to buy Newcastle United failed on Thursday, but why - and what now?
The statement released on Thursday by the Saudi-backed consortium trying to buy Newcastle does little to document the 17 weeks of frustration felt by those involved in the now-failed deal.
The message to the club's fans cites the complications caused by coronavirus and the delayed process as reasons for the bid's demise.
But behind the official wording, the decision to walk away belies the clearest of indications the consortium ultimately felt they would never be given the go-ahead to take over at Newcastle.
One source close to the Saudi-backed group has told Sky Sports News they were happy as recently as mid-April there were no "Red Flags" - i.e. no major issues regarding the Owners' and Directors' Test - and as far as they were concerned, the approval was expected any day.
Things didn't turn out that way.
If there was a chance of the takeover being ratified, would they not have held their ground?
The source went on to say the Saudi Private Investment Fund (PIF), along with Amanda Staveley and the Reuben brothers repeatedly provided detailed information to the Premier League whenever it was requested.
Contracts on a £300m deal were handed over some four months ago, but the bid to buy Newcastle was the culmination of three years of research and due diligence.
Despite those involved being the subject of strict confidentiality clauses, numerous leaks appeared, the most recent on Monday when the Daily Telegraph reported the Premier League had grave concerns over the autonomy of the bid - and exactly who would be pulling the strings if the takeover went through.
The end of the season and the opening on Monday of the summer transfer window only added to the need for resolution - not least for manager Steve Bruce and owner Mike Ashley, who has remained in the USA throughout.
PIF planned to invest more than £250m over the next five years into the club, alongside a significant investment in the local community - news that will do little to soften the blow felt by many Newcastle fans.
Certainly there was no suggestion the government didn't want the deal to happen. Earlier this week the Sports Minister made it clear he did not feel it was a matter for him or the government.
But politics has clearly played a part.
The bidders believe the pressure exerted on the Premier League from the likes of Amnesty International, the World Trade Organisation, the fiancée of murdered journalist Jamal Khashoggi and their own broadcast partners beIN Sports - ultimately brought the deal to a standstill.
Criticism of the potential deal stretched further - last month, both FIFA and UEFA heavily censured Saudi Arabia for supporting BeautQ - a pirate service that illegally streamed football matches.
The consortium also raised the question as to how much some Premier League clubs wanted the takeover - and the potential creation of a club capable of taking on Europe's biggest guns - to get the go-ahead.
The consortium, Sky Sports News has been told, repeatedly asked for a deadline to be put on the process, without success - and they believe they provided an unprecedented amount of information - but it simply wasn't enough to seal the deal.
PIF, which manages more than £264 billion of global assets, has not ruled out investing in another football club.
Sport remains a crucial part of Saudi's 'Vision 2030', the country's blueprint to wean itself off its dependence on oil and drive an economic strategy in the post-oil period.
Plans are well advanced for Saudi Arabia to host more major golf and boxing events. The first Saudi F1 race is planned for 2023.
For now, the Premier League are yet to comment on Thursday's developments. It looks like the closing of a chapter, but there remains a sense that this is far from the end of the saga.
Sky Sports News' Keith Downie:
"There's no doubt Mike Ashley has lost a lot of money during the pandemic. I think that's what led him originally to come to that £300m agreement with PCP and PIF. It was £50m less than he was asking for.
"He still wants to sell the club, let me tell you that. There's a misconception that he doesn't but he feels his time is up and as much as Newcastle supporters feel they're back to square one, Mike Ashley is as well.
"We brought the news to you three or four weeks ago that American millionaire Henry Mauriss had launched a bid to buy the club. There are still a few question marks as to how real his offer is; it's my understanding he does want to buy the club. We'll have to wait and see.
"But the fans wanted to say they were the richest club in the world and could attract the best players. Anything else will not feel the same.
"It's my understanding Steve Bruce will be given some money to spend. Will it be as much as last season before the pandemic? Probably not.
"It's not the news supporters wanted but I think they knew they needed an answer one way or another."
