Media

Thaw between Saudis and Qatar raises hopes for Newcastle Utd deal


Saudi Arabia is set to reverse a ban on Qatar-based broadcaster beIN Sports, a settlement that could pave the way for the resurrection of a £300m takeover bid for English football club Newcastle United.

According to people with knowledge of the decision, Saudi Arabia is preparing to end its dispute with beIN, which has not been able to operate in the kingdom since 2017, as well settling legal cases related to alleged television piracy brought by Qatar.

This would remove key stumbling blocks that scuppered a Saudi-led consortium’s bid to buy Newcastle. The investment group was led by the Public Investment Fund, the kingdom’s sovereign wealth fund that is controlled by Crown Prince Mohammed bin Salman. It also included UK financier Amanda Staveley and the billionaire Reuben brothers.

However, others cautioned that though a deal now comes a step closer, other hurdles remain — such as the Premier League’s insistence that ownership structure of the deal should change to ensure the Saudi state is not leading any takeover.

The original approach collapsed last year after it failed to win approval from the Premier League, which runs the top tier of English football.

The Premier League must determine if new investors pass its Owners’ and Directors’ Test. Would-be buyers can be blocked if they have committed an act in a foreign jurisdiction that would be considered a criminal offence in the UK, even if not illegal in their home territory.

That requirement created problems in part because of Saudi Arabia’s alleged support for beoutQ, an Arabic-language pirate TV network that has streamed Premier League matches on which beIN had spent billions of pounds acquiring the rights.

Activists also criticised the PIF-led bid to buy Newcastle, citing the kingdom’s poor human rights record, including the 2018 murder of Jamal Khashoggi by Saudi agents.

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Newcastle’s owner, the retail tycoon Mike Ashley, has taken the Premier League to arbitration, arguing that PIF should not be considered part of the Saudi state and therefore not be subject to the owner’s test. The case is due to be heard in January.

People with knowledge of the details said recent developments in the Gulf create possibilities for Ashley to drop his arbitration and for the Premier League to approve the club takeover. The Premier League, Newcastle and beIN declined to comment.

Saudi Arabia banned beIN after a regional embargo on Qatar in 2017, imposed with its allies the United Arab Emirates, Bahrain and Egypt. But Prince Mohammed spearheaded efforts to end the dispute in January, helping to ease tensions across the region.



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