Newcastle United’s majority stakeholders PIF, were dealt a warning for the future if they choose to expand their roster of clubs in Europe.
When the takeover was announced in 2021, fans flooded St James’ Park to celebrate the fact that Mike Ashley was no longer the owner, and that Newcastle United were, in theory, the richest football club in the world.
The Saudi Arabian Public Investment Fund (PIF) became the majority stakeholder of Newcastle, with the Reuben brothers and PCP Capital Partners, fronted by Amanda Staveley, also involved in the takeover.
Fans thought the takeover would be the start of Newcastle’s era of dominance, and signs last season suggest that may not be too far away. However, progress has slowed with PIF at Newcastle. A decision on a new stadium and training ground plans is still yet to be revealed.
Additionally, Newcastle are yet to appoint a new CEO and sporting director, although it is believed that David Hopkinson and Ross Wilson have been offered roles in the respective positions.
PIF have big plans, not just in Newcastle but across Europe. However, they must be wary of what has just happened with Crystal Palace, which is a stern warning ahead of any plans.
Crystal Palace co-owner Steve Parish at Wembley for the Community Shield.
Photo by Crystal Pix/MB Media/Getty Images
Crystal Palace denied access to Europa League due to UEFA multi-club rules
Crystal Palace qualified for the Europa League for the first time ever thanks to their historic FA Cup win in May. However, they were demoted to the Conference League soon after, due to Lyon’s involvement in the competition.
The reasoning for Palace’s demotion was for a breach of UEFA’s multi-club rules. American businessman John Textor owned 43% of Palace, but sold it to fellow American Woody Johnson for around £190million.
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It was revealed that Palace missed the deadline to prove UEFA multi-club restructuring, and as a result, were kicked out of the Europa League, with Lyon being allowed to stay.
Palace submitted an appeal to the Court of Arbitration for Sport (CAS) against UEFA, though their appeal was rejected. Nottingham Forest have taken Palace’s place in the Europa League, with Palace now playing in the Conference League against either Norwegian side Fredrikstad or Midtjylland of Denmark later this month.
UEFA rules state that clubs owned, to a certain threshold of influence, by the same person or entity cannot compete in the same European competition.
Crystal Palace verdict should be a clear warning to PIF and Newcastle United
Thankfully, Newcastle are safe from anything remotely similar to what Palace have done, for now.
In 2023, Bloomberg reported that PIF were looking to expand their portfolio and purchase another top club in Europe.
That purchase is yet to be made, but when it does, they must look back at the mistakes made by Palace and ensure they do not miss out on European football because of the other clubs in their portfolio.
PIF currently own majority stakes in four Saudi Pro League clubs, but that does not influence what happens at Newcastle.
Buying another club in Europe opens up new possibilities for the Magpies, but it also comes with some serious risks if not carefully looked after.