Its all over Toon fans! proposed £300 million takeover of Newcastle Called off
The proposed takeover of Newcastle United by a Saudi-backed investment fund has been called off.
Newcastle United fans have been getting very excited ahead of this summer window after news broke that they could be become one of the richest clubs on the planet when reports broke that a Saudi-backed investment were planning on buying the club.
Papers regarding the proposed takeover were lodged with the Premier League in April but no further details have been forthcoming since then, and now The Investment Group have decided to end their interest, citing the worldwide uncertainty caused by the coronavirus pandemic.
Under the proposed deal, Saudi Arabia’s Public Investment Fund would have had an 80% stake in the club.
The British-based Reuben brothers and financier Amanda Staveley were planning to each buy the remaining 10% stakes, but that will now be happening.
They said in a statement that decision had been made with “regret” and was down to the worldwide uncertainty caused by the coronavirus pandemic.
A statement read: “With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
“We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans’ merit.
“Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.
“To that end, we feel a responsibility to the fans to explain the lack of alternatives from an investment perspective.
“As an autonomous and purely commercial investor, our focus was on building long-term value for the club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a difficult period of global uncertainty and significant challenges for the fans and the club.
“Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club’s owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.”
This is big news and one which will frustrate Newcastle fans who wanted to see the back of Ashley.