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- A consortium led by a Saudi investment fund just purchased a struggling English soccer team.
- The takeover comes after the deal faced months of delays, and has prompted backlash.
- But a survey by the Newcastle United Supporters Trust found 94% of its members supported the move.
A consortium led by Saudi Arabia's Public Investment Fund (PIF) has purchased a struggling team in England's Premier League after months of delays, the league confirmed on Thursday.
The $409 million purchase of 128-year-old Newcastle United terminates billionaire Mike Ashley's ownership of the team, which spanned 14 years, according to a CNBC report.
Now, 80% of the team is owned by the Saudi consortium, 10% is owned by PCP Capital Partners, and 10% is owned by developers Simon and David Reuben, the report said.
It's a deal long in the making. In 2020, a potential takeover was abandoned because the consortium couldn't prove enough separation between themselves and the Saudi state, which also banned Qatar's Middle Eastern Premier League rights holder beIN Sport from airing matches, the report said. The ban has since been lifted.
But before the purchase finally became official on Thursday, it had faced sharp criticism and raised eyebrows among human-rights groups, directed at concerns over the Saudi state's rights records, Reuters reported on Thursday.
"Ever since this deal was first talked about we said it represented a clear attempt by the Saudi authorities to sportswash their appalling human rights record with the glamour of top-flight football," said Sacha Deshmukh, Amnesty International UK's CEO, in a statement on Thursday.
He added, "Instead of allowing those implicated in serious human rights violations to walk into English football simply because they have deep pockets, we've urged the Premier League to change their owners' and directors' test to address human rights issues."
In separate remarks, the fiancée of murdered Saudi journalist Jamal Khashoggi had urged the Premier League not to approve the sale.
"Only a few days after the third anniversary of Jamal's murder, it is horrifying to learn that the Crown Prince is on the brink of getting what he wants: to wash his reputation, and sully the name of sports," Hatice Cengiz told the Daily Telegraph.
Khashoggi was murdered by agents of his own government in the Saudi consulate in Istanbul on October 2, 2018, Insider previously reported.
In February, the Biden administration released a declassified US intelligence report that explicitly implicated the Crown Prince Mohammed bin Salman in Khashoggi's killing.
Fans of the team, however, appear to be in favor of the purchase after showing frustration for Ashley's ownership, and could be seen on social media celebrating outside the stadium, St James' Park in Newcastle upon Tyne, England.
And a survey by the Newcastle United Supporters Trust found 94% of its members supported the takeover, Reuters reported on Thursday.
The Supporters Trust did not immediately respond to a request for comment from Insider.
Chaired by the Crown Prince, the Saudi's Public Investment Fund is at the forefront of the kingdom's attempt to diversify its economy beyond oil, Reuters said.
"Today's announcement is the conclusion of a thorough and detailed process that has allowed the Investment Group to arrive at a deal that benefits all stakeholders and will leave Newcastle United well-placed to pursue a clear, long-term strategy," the PIF said in a statement.
The Premier League, however, said it recieved "legally binding assurances that the Kingdom of Saudi Arabia will not control" the team.
"All parties have agreed the settlement is necessary to end the long uncertainty for fans over the club's ownership," the Premier League said in a statement. "All parties are pleased to have concluded this process which gives certainty and clarity to Newcastle United Football Club and their fans."
The Premier League did not immediately respond to a request for comment from Insider.