Newcastle’s majority shareholders the Saudi Arabian Public Investment Fund [PIF] have been accused of funding their Premier League rivals.
PIF bought an 80 per cent stake in the Toon in October 2021 after a year-and-a-half legal battle with the top-flight and beIN Sports was finally resolved.
PIF’S Yasir Al-Rumayyan is the Magpies’ chairmanGettyThat stake has since increased with Amanda Staveley and Mehrdad Ghodoussi selling their shares to the Saudi company.
However, PIF has invested millions and millions into the ongoing FIFA Club World Cup, which is helping Newcastle’s Premier League rivals avoid problems with the Premier League’s spending rules [PSR], and help Chelsea and Manchester City in the transfer market.
Certainly, that is the view of financial expert Stefan Borson.
Speaking on the Saturday Session to Sam Ellard and Kevin Nolan, he spoke about the amount of money PIF are investing in the tournament.
He said: “At the 11th hour [Gianni] Infantino managed to get a friendly £1billion from PIF.
“It came through DAZN, but PIF had just put £1bn into DAZN, and, coincidentally, we have a Saudi World Cup.
“But it is serious money, City and Real Madrid are looking at $35million [£25.5m] each just for turning up, and on top of that, they’ve earned about another $15m [£11m] so far.
“So, the scale of the prize money is very, very significant.
“City have already earned the same amount of prize money as Spurs did for winning the Europa League, and Chelsea have almost doubled what they made from the Conference last season.”
Chelsea have already been busy in the transfer marketGettyThe figures from the Club World Cup are so obscene, and given Newcastle aren’t in it, their owners are indirectly funding the club’s rivals.
Specifically on that, Borson remarked: “PIF, who own Newcastle, are behind all of the money we just talked about at the Club World Cup.
“They are funding a whole list of teams that are not only going to be up against them in the Premier League, but in the Champions League.
“So, you have an immediate, bizarre contradiction.
“It’s clear Newcastle have taken a very cautious approach. Why they haven’t pushed the boundaries in the way that Chelsea did, they would have to explain.
“It could be because they don’t want to attract a whole load of focus from the Premier League due to the Saudi background, and have therefore, played it very cautiously.
Eddie Howe managed to win a trophy and bring Champions League football to Tyneside without much backing in the transfer market last seasonGetty“That caution has meant they’ve been close to breaking the PSR limit, but managed to avoid it.
“But they didn’t buy anyone in January, when it looked sensible to do so, and sold Lloyd Kelly and Miggy Almiron.
“You are now seeing an approach that I suspect will mean they won’t spend the money that you would associate with ambition.”
Last summer, Newcastle were forced to sell Elliot Anderson and Yankuba Minteh to comply with PSR rules.
While in terms of incomings, Lloyd Kelly, Will Osula and Lewis Hall’s loan move from Chelsea being made permanent was the club’s only business.
This summer is already proving to be frustrating as well.
Trafford could still end up on Tyneside but negotiations are proving trickyGettyThe Magpies tried to sign James Trafford last summer and have seen a £26m offer for the goalkeeper rejected by Burnley, talkSPORT understands.
Talks between the two clubs remain ongoing.
While offers for Anthony Elanga and Joao Pedro have also been rejected.
And Borson believes that all of this is due to Newcastle not wanting to draw any attention to their ownership situation, leading to a measured and cautious approach in terms of transfers and financial deals.
The club have lost two sporting directors in quick succession with Dan Ashworth joining Manchester United before being fired, while his replacement Paul Mitchell is stepping down at the end of June, along with CEO Darren Eales, who is leaving for health reasons.
But there is no replacement for either position lined up.
Meanwhile, Man City, Chelsea and the possible Champions League teams that the Magpies could face next year are having their coffers fattened by the Toon’s owners.
It is a strange situation, and if Eddie Howe‘s squad isn’t significantly strengthened by the time the transfer window slams shut, the Toon fans are likely to have some questions.
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