Accusations surfacing against Newcastle's ownership for financing rivals' transfer dealings using proceeds from the Club World Cup.
The Unseen Financial Boost to Prem Rivals: Saudi Investments and the Club World Cup
Here's the bitter truth behind Newcastle's majority shareholders, the Public Investment Fund (PIF) of Saudi Arabia. Accusations of funding their Premier League rivals are swirling, and it's all tied to the FIFA Club World Cup.
PIF bought an 80% stake in Newcastle last October, following a legal battle with the top-flight and beIN Sports. Since then, their ownership has only grown, with Amanda Staveley and Mehrdad Ghodoussi selling their shares to the Saudi company.
However, PIF's investments aren't solely restricted to Newcastle. Millions are being pumped into the Club World Cup, which is teeming with benefits for Newcastle's Premier League contenders. Financial expert, Stefan Borson, believes this is helping Chelsea and Man City in the transfer market.
Borson discussed the amounts of money PIF are investing in the tournament on the Saturday Session, stating that PIF had contributed a whopping £1bn to the tournament. City and Real Madrid are reportedly earning around $35m each, just for showing up, with an additional $15m earned so far. Chelsea, for instance, have made almost double what they made from the Conference last season, all funded indirectly by PIF.
This financial support to the Club World Cup competitors is raising eyebrows, as Newcastle isn't in the tournament and are, in essence, funding their rivals.
Borson also highlighted the contradiction this situation presents, as PIF owns Newcastle but is also funding a list of teams that are not only up against them in the Premier League, but in the Champions League. He suggests that Newcastle's cautious approach might be due to fear of drawing attention to their Saudi background and avoiding potential scrutiny from the Premier League.
Despite the caution, Newcastle has remained close to breaking the Premier League's spending rules. Last summer, they were forced to sell players like Elliot Anderson and Yankuba Minteh to comply with the rules. This summer, the club is already showing signs of frustration, as offers for James Trafford, Anthony Elanga, and Joao Pedro have been rejected.
The investment in the Club World Cup, however, is just one piece of PIF's broader sports strategy through subsidiaries like SURJ. SURJ avoids investing in individual foreign franchises but targets league-level investments and transformative sports deals that benefit multiple clubs, including Premier League teams.
This partnership between PIF and FIFA is part of a shared vision to foster innovation and engage fans worldwide, suggesting that the investment is intended to have a broad, positive impact on the growth and development of club football globally[1][2]. Nonetheless, it's hard to ignore the immediate financial implications for Newcastle's Premier League rivals.
If Eddie Howe's squad isn't significantly strengthened by the time the transfer window slams shut, Toon fans might justifiably have some questions. After all, their owners are afternoon tea with their fans' potential title rivals.
- The Public Investment Fund (PIF) of Saudi Arabia, Newcastle United's majority shareholders, are attracting accusations for funding their Premier League rivals, particularly in relation to the FIFA Club World Cup.
- Financial expert, Stefan Borson, posits that PIF's substantial investments in the Club World Cup are aiding Chelsea and Manchester City in the transfer market.
- Chelsea, for instance, have made nearly double what they earned from the Conference last season, indirectly funded by PIF's Club World Cup investments.
- The financial support to Club World Cup competitors presents a contradiction, as Newcastle isn't in the tournament and, in essence, is funding their rivals in both the Premier League and European leagues like the Champions League.
- Despite the potential scrutiny, Newcastle has nearly breached the Premier League's spending rules, and this summer they are showing signs of frustration as offers for various players have been rejected.
- PIF's sports strategy, as executed through subsidiaries like SURJ, targets league-level investments and transformative sports deals that aim to benefit multiple clubs, including Premier League teams, suggesting a broader, positive impact on the global growth and development of club football.
