Dealmaker Staveley at centre of Saudi bid for Newcastle Utd

      Published on Saturday, 8 February , 2020      2451 Views     
Dealmaker Staveley at centre of Saudi bid for Newcastle Utd

England’s Premier League has been buzzing with news that Saudi Arabia’s sovereign wealth fund is leading an investor group that wants to buy Newcastle United for about £340 million ($445 million).

A potential takeover could be a boon for the northern soccer team with legions of passionate fans but a lackluster recent record, but it would also have repercussions well beyond sport. Saudi Arabia’s Public Investment Fund is led by Crown Prince Mohammed bin Salman.

The potential deal is bringing together a disparate group of billionaires, and at the centre a well-connected dealmaker called Amanda Staveley.

The 46-year-old investment adviser has carved out a niche as a bridge between the royal families of the Middle East and the UK. Staveley advised Sheikh Mansour bin Zayed Al Nahyan, a member of the royal family of Abu Dhabi, on a potential capital investment in Barclays during the 2008 financial crisis. She wound up suing the bank, alleging it cheated her firm, PCP Capital Partners, out of hundreds of millions of pounds in compensation. The suit is expected to be heard this year.

She also advised Mansour on his 2008 purchase of Manchester City, a team that had long been eclipsed by its crosstown rival, Manchester United. The deal paved the way for a remarkable run as Manchester City won four Premier League championships. Last year, the club sold a 10 percent stake for $500 million.

She had less success in 2018 when trying to organize a separate bid for Newcastle. Now Staveley, who operates from a stone mansion across from London’s Hyde Park as well as Dubai, is back in the fray. Her firm is poised to buy a stake alongside the Saudis and another super-rich family.

For Staveley, who grew up in North Yorkshire just south of Newcastle, a deal would be a riposte to critics who doubted the seriousness of her prior bid.

British billionaires Simon and David Reuben also are part of the buyers group, according to a person familiar with the negotiations, who asked not to be identified as the information is private.

The Reubens have an eclectic past. They were born in India into a prominent Iranian Jewish family, but then moved to London as teenagers. They made their money in Russia’s aluminum industry in the 1990s, and are now investing in data centers and real estate, including a development in Newcastle with high-end shopping, a boutique hotel, and a restaurant in a converted police and fire station. They have a combined fortune of $12.6 billion, according to the Bloomberg Billionaires Index.

David’s son Jamie, 32, is leading the family’s involvement in the Newcastle negotiations, the person said. Jamie is a director with Queens Park Rangers, a London club that plays one level below the Premier League. He’s largely kept a low profile, though he sits on the boards of private members club 5 Hertford Street and horse racing group Arena Racing.

Mike Ashley, Newcastle’s current owner, built his fortune from a single sporting goods shop in a town west of London. He bought the club in 2007, the same year he took retailer Sports Direct public. He’s worth $3.8 billion, according to Bloomberg’s index.

Ashley has courted controversy along the way, becoming known for holding business meetings in pubs complete with drinking contests while Sports Direct employees have complained of poor working conditions.

His relationship with Newcastle fans is increasingly fractious as the club remains mired in mediocrity. Ashley has been ambivalent about selling the team, further frustrating its supporters.

Category Sport | 2020/02/08 latest update at 1:23 PM
Source : Arabian Business | Photocredit : Google
Comments Add comment

Gulf Media

Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.

Sponsored Publications