It’s been almost four years since Saudi Arabia’s Public Investment Fund (PIF) acquired an 80% stake in Newcastle United in October 2021. The takeover freed United from the shackles of Mike Ashley’s rudderless, listless, gutless (and many other -lesses) tenure and has brought an almost non-stop upward trajectory to Tyneside.
Generating waves of excitement and controversy in equal measure, the promises of transformative investment and ambitions to restore United to former (and, almost, never before seen) glory have turned the club around and stopped the haemorrhaging of fans’ support.
A Carabao Cup win and a Champions League campaign (with a second on the horizon) have followed on from club spending £470.45m on players under PIF’s early watch; however, no significant first-team signings have arrived since the summer of 2023 when Sandro Tonali jetted into Newcastle in a £55m deal.
And as a, so far, quiet summer stretches out behind us, the stadium question apparently kicked to the kerb once again, the training ground (despite a £10m lick of paint) being outdated, and key sponsorship slots criminally unused at United; the PIF narrative appears more nuanced, with some asking the question: does PIF still consider Newcastle United a priority?
**A Vast, Diverse Portfolio**
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Despite over 60% of PIF’s portfolio being Saudi Arabia-based, its international portfolio is vast, spanning industries from technology (Capcom, Boeing, Meta) to hospitality (Uber, Live Nation). Its sports ventures may appear substantial on paper (LIV Golf, SPL, United) but are a mere pittance financially – PIF’s small 3.5% stake in Uber cost it $3.5b alone.
LIV Golf is the standout sporting endeavour financially, with $2b used to lure US heavyweights like Phil Mickelson ($200m contract) and Dustin Johnson ($150m contract) to the tour, as well as other big European names like Sergio Garcia and Lee Westwood.
Alongside these, the acquisition of United was considered a part of Saudi Arabia’s broader Vision 2030 strategy – a plan to diversify the kingdom’s economy away from oil, entertain its young population, and enhance its global influence through soft power.
A rocket ship always has to come back down
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Initially, signs of commitment were undeniable. Through Amanda Staveley, whose PCP Capital Partners were given a contract to manage the day-to-day at United, the club’s infrastructure saw investment, marquee signings arrived, and the team rapidly climbed the Premier League table, ultimately surviving in season one before securing European football in season two under PIF’s watch.
The club targeted best-in-class directors and CEOs and appointed them relatively quickly, allowing the progressive executive team to grow and develop the club, which has seen United earmarked as a £1b asset, with the value of the club tripling in four short years following the initial £305m outlay.
However, as PIF’s interests grew, notably with heightened investments in its domestic Saudi Pro League and a desire to bring the best players to Saudi shores, and an apparent willingness to strengthen some of United’s biggest rivals financially, questions have naturally emerged about Newcastle’s standing within their expansive agenda.
Recent transfer windows have only fuelled this debate further. United are hamstrung by PSR, and the scale of investment has seemingly plateaued; major infrastructure projects have gone silent, and revenue streams that seem ripe for use are unused. United continue to be active in the transfer market at youth level, with a slew of high-potential youngsters joining the academy (of which Antonio Cordero and Alfie Hutchinson are the latest), but the financial outlay is relatively low.
Perhaps United have hit a glass ceiling, and PIF know this and cannot take the next step without serious investment that is coming down the pipeline, but with the radio silence from the club, it’s difficult to know just what the situation is.
**What’s next?**
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Clearly, the leadership dynamics within the club have evolved. Staveley has left, and Yasir Al-Rumayyan remains Chairman, but his obligations across PIF’s portfolio obviously dilute his direct involvement with Newcastle and hinder the pace of decision-making. This makes the apparent flux in the senior positions at United even more difficult, with an outgoing Sporting Director and CEO – even the reserve team manager has left this summer!
It’s easy for Al-Rumayyan to say we want to be number one in a documentary and hold up his finger, mouthing ‘this is only number one’ after the cup win in March, but surely the local executive team at United need greater autonomy and a degree of trust rather than oversight from Riyadh.
United’s very presence in the two most watched football competitions in the world (excluding the World Cup) suggests that the club being sidelined by PIF may be an overstatement. Nothing quite brings soft power like a successful Premier League team; just ask Roman Abramovich.
Yet, until a first-team ready signing comes through the door again, these types of questions will be asked, and the very nature of modern football transfers (in that every little detail is played out in public) coupled with some of United’s apparent amateurish actions in the market (low-ball bids, too slow to act) will only fuel fan angst, especially the terminally online cohort.
PIF’s strategy might simply have matured from aggressive early-stage investment to a model focused on sustainable success (although, once again, it would be nice to know), but for many fans, the club stands at a precipice. Get it right, and it could signal a more stable and enduring era of success. Get it wrong, with other clubs seemingly climbing over themselves to bend the rules to breaking point, and United could find themselves in the football wilderness once again.