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What might the Saudis want from buying Newcastle?

Saudi Arabia has made no secret of its wish to get involved in sport as part of its Vision 2020 project. Apart from anything else, other Gulf states are ahead of the curve, notably rivals Qatar.

Saudi Arabia sees it as a rebranding exercise, something they hope will boost tourism in the desert kingdom. Critics call it sport washing because of what they see as the country's poor human rights record. It is said that there are plans to introduce 'KSA' (Kingdom of Saudi Arabia) branding on Newcastle shirts.

There is a business case for investing in football clubs. Their valuation continues to rise on the back of multi-million pound media rights contracts. Newcastle has a super loyal following and real potential for global branding.

However, for many these sports investments are a means of projecting soft power (as distinct from hard or military power) and distracting attention from media coverage of Middle Eastern states. According to a Newcastle Chronicle poll, fans have no objections to a takeover on the basis of the Saudi Arabian human rights record. 80 per cent are in favour of a takeover and seeing the back of Mike Ashley.

The Saudis already have a presence in the Premier League through Saudi Telecom and its official partnership with Manchester United. Saudi Prince Abdullah bin Musa'ad has secured full control of Sheffield United.

Premier League ownership rules were tightened in 2017 and can ban potential owners if they have committed an act in a foreign jurisdiction that would be considered a criminal offence in the UK even if it was not considered illegal in their home territory. However, it should be borne in mind that the UK Government would wish to maintain good relations with Saudi Arabia.

An additional incentive is that the Saudis might be prepared to invest in regenerating parts of Newcastle, just as happened with Manchester City's Etihad stadium. The Government is keen to deliver on its promise to do what it can to boost the north of England.

Ultimately the biggest barrier to any takeover is likely to be the stance of Mike Ashley. I will consider that in a later post.

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