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Saudi interest in Prem clubs |
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Richard Lowther ![]() Coaching staff ![]() ![]() Moderator Joined: 19 May 2007 Location: England Status: Online Points: 6575 |
![]() ![]() ![]() ![]() ![]() Posted: 31 Jan 2024 at 20:08 |
From Telegraph.co.uk Saudi Arabia in talks to buy stake in Leicester, Gloucester, Northampton and Newcastle rugby clubs Exclusive: Stadium naming rights and a rugby academy in Saudi Arabia are on the cards if a deal goes through Charles Richardson, RUGBY REPORTER 31 January 2024 • 7:11pm Saudi Arabian investors are in discussions to invest millions into four of England’s top-flight rugby clubs. Telegraph Sport can reveal that associates of the Saudi sovereign Public Investment Fund (PIF), which took an 80 per cent stake of the Premier League’s Newcastle United in 2021, have held discussions with Gloucester, Leicester Tigers, Northampton Saints and Newcastle Falcons about proposed seven-figure investments. It is understood that the group are seeking control of stadium naming rights and the establishment of a rugby academy in Saudi Arabia as part of any potential stake in the four clubs, an investment which could be worth as much as a combined £60 million to the clubs involved. Senior Premiership executives are thought to be aware of the discussions but the organisation told Telegraph Sport that the league could not comment on individual club matters. Even without the spectre of last season – when three Premiership clubs went out of business in the space of 10 months – such an investment would come as a major boost to the English rugby landscape. But, in the context of last year, such large financial backing, albeit with ethical considerations, would represent one of the most remarkable moments since the Premiership introduced professionalism in 1995. It would involve four established clubs sacrificing a further chunk of their revenues following the CVC Capital Partners Investment in 2019. ‘Investors see room for growth in the clubs’ Telegraph Sport understands that Gloucester were initially the sole representatives in negotiations but that the investment group did not view the West Country club alone as an attractive enough proposition. Newcastle, alongside Leicester and Northampton – two of the league’s best supported clubs – were subsequently brought to the negotiating table to add greater value. Discussions continue to progress, even if the pace has slowed in recent weeks. It is understood that one of the four clubs has established a direct dialogue with the Saudi group and is exploring the possibility of individual investment should a joint venture fall through. Rugby Football Union’s regulations regarding club ownership state that any change of 10 per cent or less does not require consent from the governing body. Alongside Premiership Rugby Limited, the organisation could block a group from owning more than 10 per cent of more than one club in the league, too, while under European Professional Club Rugby regulations, no two clubs can be owned by a solitary body with more than a 20 per cent stake. A source with knowledge of the talks said: “Conversations between potential future investors in the sport regularly take place. Investors see the headroom for growth in the clubs.” A Gloucester source added that the club did not comment on commercial or investment matters while Newcastle, Northampton and Leicester declined to comment. In 2021, PIF acquired an 80 per cent stake in Newcastle United in a deal worth around £300 million with former owner Mike Ashley. Two other members of the consortium, the Reuben Brothers and Amanda Staveley, both took a 10 per cent share. The takeover process lasted for 18 months and faced interventions from the governments of both the United Kingdom and Saudi Arabia. Amnesty International were among the bodies to oppose the attempt, saying that it was part of Saudi Arabia’s efforts to sportswash their human-rights record. Two years after the takeover of Newcastle United, the Premier League changed its ownership rules to disqualify potential owners and directors who had committed human-rights abuses. Edited by Richard Lowther - 31 Jan 2024 at 21:59 |
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FHLH ![]() World Cup Winner ![]() Cambridge Joined: 19 Apr 2009 Location: Cambridge Status: Online Points: 5331 |
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I'd hope it was 1st April ...... but it's clearly not. Must try to think of a sensible reply other than "For bananas sake, is nothing sacred?"
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"My father told me big men fall just as quick as little ones, if you put a sword through their hearts."
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tigerburnie ![]() World Cup Winner ![]() Joined: 10 Jun 2012 Location: Scotland Status: Offline Points: 3736 |
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It's that well known Abba hit...............................................Money, Money, Money
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Camquin ![]() World Cup Winner ![]() ![]() Joined: 01 Jun 2007 Location: Cambridge Status: Offline Points: 11284 |
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Or, in the case of the Saudis, loose change they misplaced down the back of the sofa. According to the Guardian, they have already spent £5 billion. A seven-figure sum is £10 to £99 million, so is less than 2% of the total.
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Sweeney Delenda Est
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tigerburnie ![]() World Cup Winner ![]() Joined: 10 Jun 2012 Location: Scotland Status: Offline Points: 3736 |
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It would appear they are after naming rights, £60million seems quite a lot for just that for 4 clubs, who all happen to own their own grounds? 19% share holding is the maximum ownership allowed in a club, didn't think one person/group could have an interest in more than one club.
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Camquin ![]() World Cup Winner ![]() ![]() Joined: 01 Jun 2007 Location: Cambridge Status: Offline Points: 11284 |
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You can get naming rights without buying the company - Leicester sold theirs in 2020 to a Wealth Management firm based on Welford Rd. until at least 2025. Before that, MW only sponsored the shirt and one stand.
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Sweeney Delenda Est
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Big Eddie ![]() World Cup Winner ![]() ![]() Joined: 19 Jun 2007 Status: Offline Points: 5043 |
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This may happen but I suspect it wont. Even at a proposed £60m the play is likely to be too small for a Sovereign Wealth Fund
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''The future isn't what it used to be''
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billesleyexile ![]() World Cup Winner ![]() ![]() Joined: 20 Jun 2013 Location: England Status: Offline Points: 1855 |
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depends if they're in it for wealth, or reputation laundering really. If the latter, then arguably it's very cheap.
Also, given how many times we've said on here that the backers of the big clubs have been sold a pup, and are unlikely to get their money back - because it's not investable - isn't this the offer they jump at to get some of it back, given the Saudis and the like are the only people who could make such a play without being necessarily that fussed about the financial return?
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keep the faith
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Big Eddie ![]() World Cup Winner ![]() ![]() Joined: 19 Jun 2007 Status: Offline Points: 5043 |
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The report mentions talks. It would be interesting to know which party first made the approach ....the Premiership Clubs or the Saudis? If the Premiership Clubs made the first approach then I would have less confidence that this is going to happen
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''The future isn't what it used to be''
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kempstonblue ![]() World Cup Winner ![]() ![]() Joined: 20 Jun 2020 Location: Kempston Status: Offline Points: 522 |
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If the Saudis have money to burn, how about Premiership 2?
Or the current Championship? 😂
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The older I get, the more the RFU leave me confused.
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Steve@Mose ![]() World Cup Winner ![]() Joined: 01 Jun 2007 Location: United Kingdom Status: Offline Points: 2800 |
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Some people have been talking up the prospect of major rugby finals - and even the 2035 RWC - being held in the Middle East.
I suspect an investment in domestic team(s) may entail commitments to the investor - such as playing match(es) in the investor's home country*. (*subject to the rules of the competition.....being bent sufficiently to satisfy the investor)
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Steve@Mose ![]() World Cup Winner ![]() Joined: 01 Jun 2007 Location: United Kingdom Status: Offline Points: 2800 |
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I doubt even the Saudis have enough money to level the pitch at Goldington Road.
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Greg ![]() First XV regular ![]() Joined: 30 Jan 2020 Location: Norfolk Status: Offline Points: 110 |
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Who needs a level playing field?
The Goldington Road pitch was designed and approved by the RFU! Bill Sweenie himself was seen digging with great furiosity down in the bottom right hand corner.
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WEvans ![]() World Cup Winner ![]() Joined: 08 Dec 2016 Location: London Status: Offline Points: 1456 |
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I believe his bonus cheque had fallen out of his bulging wallet.
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