Newcastle United’s owners, the Public Investment Fund of Saudi Arabia, have sold one of their Saudi Pro League clubs.
Less than a year after completing its £305million takeover of Newcastle, PIF acquired a 75% stake in Al Ahli, Al Ittihad, Al Nassr and Al Hilal, with the other 25% controlled by a non-profit organisation.
PIF are set to retain a 5% in Al Hilal, having sold the other 70% to Kingdom Holding Company.
Newcastle United owners PIF sell Al Hilal
“The sale aligns with PIF’s strategy to maximize returns and redeploy capital within the domestic economy,” a PIF statement read. “This strategy supports PIF’s wider efforts to drive the development and diversification of Saudi Arabia. PIF is unlocking opportunities to make a transformative impact in the Saudi sports sector and deliver positive, long-term results.
“PIF has been Al-Hilal Club Company’s major shareholder since July 2023, under the Saudi Sports Clubs investments and privatization project, accelerating the club’s progress and increasing the sports sector’s contribution to Saudi GDP.
“PIF has led the transformation of Al-Hilal Club Company alongside the club’s executive team, achieving significant improvements in the company’s governance framework, operational performance, and infrastructure and facilities.
“These efforts were reflected in commercial returns and significant value growth, supported by sponsorships, merchandise sales and matchday revenue. As a remaining shareholder, PIF will continue supporting Al-Hilal Club Company’s growth journey.
“The acquisition reinforces KHC’s leadership in identifying high-value opportunities and creating long-term impact for shareholders and the national economy. It also reflects the company’s strategy to diversify its investments across high-growth sectors with significant economic and social value.
“KHC will support Al-Hilal Club Company to further focus on enhancing its commercial performance, expand its international partnerships, and continue to develop world-class sports infrastructure.”
HRH Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, Chairman of Kingdom Holding Company, said: “Al-Hilal is a national symbol and a source of pride for the Saudi people. This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development.
“By applying our global investment standards and cultivating strategic partnerships, we will unlock Al-Hilal’s full potential while preserving its history and identity.”
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, added: “PIF has proudly helped drive the efforts to transform Saudi Arabia’s sports sector and increase its value proposition for investors while creating lasting results at every level, from players and fans to local communities.
“PIF has set ambitious goals for the clubs, enabling them to become successful commercially and professionally and achieve long-term financial sustainability. Today’s announcement aligns with PIF’s strategy to maximize returns and redeploy capital within the domestic economy.”
UEFA rules block Newcastle United from doing business with PIF-linked clubs
PIF retaining a small stake in Al Hilal is likely to mean that Newcastle will still be unable to profit from dealings with those Saudi clubs.
The £21million sale of Allan Saint-Maximin to Al Ahli in 2023 remains the only piece of transfer business Newcastle have done with a Saudi club, a profit that counts under Premier League financial rules but not UEFA.
“It doesn't stop us doing business. What it means is if we make a profit, it doesn't count,” Newcastle chief financial officer Simon Capper revealed recently.
“We sell a player that's worth a pound for £10million and make a profit of £9.999million in the Premier League but make a profit of zero in UEFA. We just don't get a profit.
“[Other clubs doing lucrative business with Saudi clubs] is some frustration for us. Our competitors can sell a player to a Saudi club for massive profit and bank that for their various compliance calculations.”
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