Saudi sovereign wealth fund gains a foothold in football with Newcastle takeover

Posted on Oct. 12, 2021, 12:07 p.m.Updated Oct 12, 2021, 12:17 PM

In the absence of that of the players, the transfer window of the European clubs is in full swing. After two years of negotiations and twists and turns, the Saudi sovereign fund has finally bought the English club from Newcastle United. Saudi Arabia’s Public Investment Fund (PIF) associated with two private equity firms, PCP Capital Partners and RB Sportyts & Media, bought the club for £ 305m (€ 360m). The sovereign wealth fund acquired 80% of the capital and its two partners the remaining 20%.

The buyout price is more than 20 times the club’s profits in 2019 (£ 14.9million). In 2020, he suffered a loss of £ 54million and a 14% drop in revenue to £ 152.6million.

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