When in 2021, the news that Mike Ashley would sell Newcastle United, fans were quick to celebrate, with a year’s worth of protests amounting to a seismic change at St James’ Park. At the heart of the transformation and wanting to bring the club into a new era is the Saudi Arabian Public Investment Fund (PIF).
Under PIF’s ownership, the club instantly became one of the richest in the world and in the realm of football’s financial elite. But who and what is PIF, and where does the money come from?
Essentially, PIF is Saudi Arabia’s sovereign wealth fund, a kind of state savings account, made up of a reported staggering $700 billion. The fund has been used for a whole range of investments in some of the world’s biggest businesses, including the likes of Disney, Uber, Facebook and Starbucks, to name a few.
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Unsurprisingly, the bulk of the money collected into the fund comes from the country’s vast oil wealth, but with oil a finite resource, the fund looks to invest in new long-term projects – with their 80% buyout of Newcastle, their first venture into major European sports.
In the North East, their investment saw an almost instant change, with the club splashing the cash to bring in some major transfers, which has seen them rise up the league and become a dominant force in both the league and also the transfer market.
Although the investment fund wants to secure growth within Saudi Arabia, external investments, such as owning The Magpies, are seen as a broader strategy to improve their image. However, along with their neighbours in the UAE, whose ruling family have a large stake in Man City have come under criticism.
When the deal came about, the move was criticised, with some accusing the move of “sportswashing” – an idea that Amnesty International suggests countries with a poor human rights record can invest in sport as a distraction from their record.
The controversy continues with PIF’s chair, Crown Prince Mohammed bin Salman, the son of Saudi Arabia’s king. In charge of the Saudi government, bin Salman was accused of the murder of critical journalist Jamal Khashoggi. A UN was found to be in the hands of the state of Saudi Arabia, although the government has denied this.
Carabao Cup 2025 special edition
Newcastle United have reached Wembley again after reaching the final of the Carabao Cup. The showpiece game takes place on Sunday, March 16 and to celebrate, Newcastle Chronicle will be producing a print special edition. Costing £3.50, it will have interviews, analysis, opinion and news and will be on sale from March 5 in retailers while you can also pre-order online now.
View news Source: https://www.chroniclelive.co.uk/sport/football/football-news/who-pif-newcastle-uniteds-mega-31210594
