What the government documents really tell us about the Newcastle takeover

The protracted takeover of Newcastle United by Saudi Arabia’s Public Investment Fund was finally called off on 30 July 2020 after the Premier League could not determine where the Fund ended and where the Saudi Government started and, as a result, who would ultimately own the club.

This week, two revealing stories by The Newcastle Chronicle and The Daily Mail reveal this takeover was discussed by senior Ministers at the heart of the UK government. But is this such a revelation? Or is this just standard government practice?

What do we know?

Starting with the Newcastle Chronicle, a revealing article by Andrew Musgrove - following a Freedom of Information Request - found the following:

• The Premier League spoke to the Saudi desk of the Foreign Office

• Department for Culture, Media and Sport (DCMS) draw up statements on the Newcastle takeover and asked the Premier League if there is anything they'd 'suggest' or 'be comfortable with' in terms of a 'public line if raised by the [DCMS] select committee'

• on 12 June the DCMS ask the Premier League to confirm or deny a decision on the takeover is imminent

• On 19 June the DCMS send an email sighting departmental sources who believed a decision could be made that day. The email notes that the Secretary of State (Oliver Dowden) is set to feature on BBC Radio 4's Any Questions later in the day and 'so it would obviously be good to have a heads up'

• On 21 June the DCMS writes to the Premier League with the understanding that a decision is 'imminent now'

• There was a 'senior cross Whitehall' meeting on June 22nd on the topic of Saudi Arabia and asks for an update from the Premier League in advance

• 21st June 2020 - 9.01pm - The Premier League confirms that a decision on the takeover is 'possible' the following day, so it is 'worth letting people know that a meeting may be needed'

This is presented as confirming some level of Whitehall involvement in the process. And was built on by a report by the Daily Mail’s Simon Walters which reports that Boris Johnson was asked by the Saudi Crown Prince Mohammed bin Salman to intervene in the takeover process.

Mr Johnson is reported to have asked one of his aides to look into the matter.

That aid - Lord Lister - clarified to the Daily Mail:

'The Saudis were getting upset. We were not lobbying for them to buy it or not to buy it. We wanted them [the Premier League] to be straightforward and say yes or no, don't leave them [the Saudis] dangling.'

What this tells us

While this is presented as government interference and involvement in the process, the reality is this is standard practice for the government to be updated on any takeover of a major UK company. Newcastle United’s takeover was reportedly worth £300m. The club are a flagship national institution and one of England’s most historic clubs.

Ministers appearing on TV and Radio are highly likely to be asked about the biggest stories of the day - and there is no doubt that for DCMS, the Newcastle takeover was one of the biggest stories in Sport. It is natural the government would want regular updates on the situation.

That the DCMS were requesting updates is not surprising, especially when the Secretary of State was due to appear at a Select Committee - where he would be asked detailed questions on all aspects of his brief. During the meeting in question (on 22 April) Secretary of State Oliver Letwin was asked detailed questions about the takeover process. Requesting clarification over where it is up to, and what the Premier League are comfortable with him saying, is common courtesy towards one of the UK’s biggest industries.

It is worth repeating that the takeover stalled as the Premier League could not determine where the Investment Fund ended and the Saudi Government started. It failed as, apparently, asking for this clarification (on the simple question of "who will ultimately own the club?") was seen as too unreasonable a question. This takeover being so linked to the Saudi government gives it a separate geopolitical aspect which would ensure the Foreign Office took an interest. That the Crown Prince personally intervened and asked the Prime Minister to do likewise gives real credit to the Premier League’s concerns.

The Crown Prince’s intervention is perhaps the biggest revelation here. The takeover has proved so controversial as the Saudi Arabian government has huge questions to answer over human rights abuses, and their treatment of both women and the LGBT community. Amnesty International have been consistent critics of the potential takeover and the Crown Prince’s suggestion that the PM “corrects” the issue suggests he does not understand how - in the UK at least - the Prime Minister cannot compel an organisation to bend to his will.

Lord Lister's comments actually explain as far as the government in the UK is actually able to go. They cannot compel the Premier League to approve the takeover. It does not have that power. But as a government, it has a responsibility to balance relations with foreign states. Pressing for a decision - whatever way that decision falls - is not the same as dictating a decision to the Premier League (which is what the Crown Prince appears to ask for).

Had the Premier League let this takeover proceed, when there are concerns the Investment Fund are simply an extension of the Saudi state, and they were not able to work out where the State itself ends and the Fund starts, they could easily be seen as allowing one of Britain’s biggest clubs be used for sportswashing (where a questionable state or company uses sports success to try and curry favour and be seen - by extension - as acceptable). Using Newcastle United to this end would be of direct interest to the UK government.

What to take from this

The final conclusion to take is this - the Premier League is one of the most valuable sporting competitions in the world. Newcastle United are one of its most historic clubs. An organisation with clear links to a foreign government starts the process of taking over a huge club in a deal with hundreds of millions of pounds. It becomes one of the biggest stories of the day with interest from figures in sport, business, human rights charities and the North East in general all wanting to know what is happening.

When all the above is taken into account, I’d be more surprised if the government didn’t talk about it.