The Public Investment Fund - worth a cool £700billion - own an 85 per cent stake in Newcastle United.
Football financial expert Stefan Borson has slammed PIF for “funding” Newcastle United’s rivals.
Saudi Arabia’s sovereign wealth fund own an 85 per cent stake in the Magpies as part of a wider sporting portfolio. While PIF have interests in golf, boxing and other ventures, Newcastle form only a slice of their football pie.
The Saudi Pro League has become a force since Cristiano Ronaldo became the first high-profile player to take the leap of faith. Unprecedented levels of wealth have infiltrated the game - with Premier League clubs enjoying inflated fees for unwanted players.
Newcastle are the only top-flight outfit to face questions when Allan Saint-Maximin was sold for a modest £23million two years ago. This triggered a debate around Associated party Transactions - with PIF owning four clubs in the Pro League.
PIF and FIFA partnership
PIF have also forged a partnership with FIFA to bankroll the controversial - and ongoing - Club World Cup. Despite underwhelming attendances and a lack of household interest, the overall prize pot is a mouth-watering £1billion.
Chelsea and Manchester City are two English clubs set to net an enormous purse for what is effectively a pre-season tournament. Monetary guru Borson has questioned whether PIF are still ambitious about the St James’ Park project.
PIF under fire
“PIF, who own Newcastle, are behind all of the money we just talked about at the Club World Cup,” he told talkSPORT. “They are funding a whole list of teams that they are not only up against in the Premier League, but in the Champions League as well. So, you have an immediate, bizarre contradiction.
“It’s clear Newcastle have taken a very cautious approach. Why they haven’t pushed the boundaries in the way that Chelsea did, they would have to explain. It could be because they don’t want to attract a whole load of focus from the Premier League due to the Saudi background and have, therefore, played it very cautiously.
“That caution has meant they’ve been close to breaking the PSR limit but managed to avoid it. But they didn’t buy anyone in January, when it looked sensible to do so, and sold Lloyd Kelly and Miguel Almiron. You are now seeing an approach that I suspect will mean they won’t spend the money that you would associate with ambition.”
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Simon Jordan on PSR
Former Crystal Palace owner Simon Jordan has hit out at the PSR restrictions that have stifled Newcastle since the takeover. He said: “I don’t think it serves the purpose that I might have envisioned initially it was brought in to do. I think all it does is maintain the status quo and change the direction of travel of something that’s ultimately been very successful.
“If you open the Premier League for business then you have opened it for business. Now to shut it again and suggest that you control it and control ambition? I’m not comfortable with it anymore. I thought as an owner it would encourage the reduction of hyperinflation on wages.
“It would control transfer fees. It has done none of the above. All it’s done is cement those that have already got into a position where those that want it can’t get there.”
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