Newcastle United is considered the richest football club in the world today, as other teams exhaust their spending capacity to match the deep pockets of the club’s ownership.
In the 2021/22 Premier League season, the team comfortably avoided the threat of relegation by finishing 11th. The Magpies ensured their place in Europe by making some smart player acquisitions in the January 2022 transfer window, without spending more money than any other team.
Currently, they are placed third in the standings and are on track to secure a spot in the Champions League as Newcastle has made significant progress in the 2022/23 season under the guidance of manager Eddie Howe. Despite suffering a 2-0 defeat against Manchester United at Wembley Stadium, they managed to reach the final of the Carabao Cup as well.
In October 2021, the storyline swiftly changed when a group of investors assumed control with the commitment to transform the destiny of the fervently backed team and elevating it to become a major contender in English and European soccer. The availability of resources had not been as abundant in the past few years under the previous proprietor, Mike Ashley.
The takeover of the Saudi state-run Public Investment Fund (PIF) and Reuben & Media Sports RB Partners Capital PCP by the Reuben brothers created controversy. The controversy dragged the British Prime Minister into the conversation, as the deal took over a year to complete and involved problematic geopolitical disputes and human rights issues.
On the pitch, Newcastle fans envisioning potential outcomes made way for the settlement of that conflict involving Saudi Arabia consenting to crack down on piracy that was undermining Premier League rights holder and broadcast partner beIN Sports of Qatar. Human rights organizations claimed that this was another prominent example of sportwashing, and despite the Premier League eventually approving the deal, they opposed the Newcastle takeover.
Newcastle’s new owners net worth vs. Man City’s owners net worth 🤑 pic.twitter.com/q0ghdOljQG
PIF became the majority shareholder and de facto owner of the club, with 80 percent of the shares acquired in October 2021.
Yasir Al-Rumayyan, serving as the Governor of PIF and Chairman of Newcastle United, has assumed the prominent role within PIF. Additionally, he holds the position of Chairman at Saudi Aramco, a globally renowned corporation specializing in petroleum and natural gas.
Staveley and Al-Rumayyan have been the visible representatives of the agreement. The company belongs to Amanda Staveley, who played a crucial role in facilitating Sheikh Mansour’s acquisition of Manchester City in 2008. PCP Capital Partners obtained a 10 percent stake in the company.
The remaining 10 percent of stocks were acquired by the Reuben brothers, a duo of affluent British entrepreneurs.
“We are extremely proud to become the new owners of Newcastle United, one of the most famous clubs in English football,” said Yasir Al Rumayyan, head of Saudi Arabia’s Public Investment Fund. @Laura_Wright96 reports on this dealhttps://t.co/iwVPJ0ffNN pic.twitter.com/DXvvNfZBzu
What was the price of Newcastle United?
Overall, the group paid Mike Ashley an estimated $415 million for the club.
The assertion dismissed the Premier League despite the group dismissing the league’s declaration, arguing that Newcastle United had indeed fallen apart. It appeared in September of 2020 that the agreement had intricate proceedings, and the prolonged duration of the agreement had submitted the paperwork to acquire Newcastle, as the collaborators initially emerged in April 2020, as mentioned previously.
However, it was officially announced on October 7, 2021, that the takeover was the key to settling the dispute of piracy in the sports network beIN, as many were pointing out.
Surpassing the amounts of $270 million paid by Iranian-born British businessman Farhad Moshiri for Everton in 2016, as well as the $136 million paid by Serbian billionaire Dragan Solak and investment firm Sport Republic for an 80 percent controlling interest in Southampton, the price tag of $415 million stands higher.
Newcastle player movements under new ownership
The club, which is making multiple expensive moves in the January 2022 transfer market, has suggested that their early moves in the transfer market will change and decision-makers have claimed that new ownership will have something different. It has been voiced by fans that one of the main complaints during Mike Ashley’s tenure was the lack of vision from ownership and a lack of investment.
Bruno Guimaraes joined Lyon for a transfer fee of $43.4 million, Chris Wood joined Burnley for a transfer fee of $32.6 million, Dan Burn joined Brighton for a transfer fee of $17 million, and Kieran Trippier joined Atletico Madrid for a transfer fee of $15.6 million. These players were previously associated with other clubs.
In February 2022, the organization hired Dan Ashworth as the Football Technical Director. Prior to that, Ashworth had previous periods as the technical director at Brighton and the director of elite development at the FA. He is highly respected in the sport.
He is seen as someone with a long-term vision, although the club splashed cash in the January 2022 window for the promising signing of Ashworth, a big name in the industry. The club is looking to do more than just sign big names, and they hope that by working together, they will achieve their goals.
Newcastle continued to spend in the summer of 2022, forking out £33m to sign Sven Botman as a center-back. Aston Villa also spent £15.75m on Matt Targett, while Burnley signed goalkeeper Nick Pope for £10.35m.
Everton continued their spending in the winter transfer window of January 2023 by signing Anthony Gordon for £45m. They also acquired Kuol Garang from Central Coast Mariners for £300,000, as well as Harrison Ashby from West Ham for £3m.
According to reports, the club management is currently exploring locations for a new training facility that may incorporate a smaller stadium for the women’s team and academy sides. Furthermore, there have been deliberations regarding this matter.
While final plans for the new training facility are still taking shape, it has been confirmed that the current complex training is being significantly upgraded, which is beneficial for the business owners.